SEC V/S XRP: The Full Story
But, in today’s article, we will be discussing one of those essential parts of this cryptocurrency ecosystem, i.e. XRP aka Ripple. To be more precise this topic dives into the court filings of XRP to SEC regulations.
These XRPs work on the Ripple web which is one of the basic foundation layers in the formation of XRP. It is basically a network exchange for payment system agreements as well as a network for currency exchange, which governs these globally.
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Known for their trustworthiness among two networks, they can deal with and in various types of currencies (fiat). They also charge a fee for processing transactions on their networks, this fee is readily known as XRP.
But, if you can get all these services for free, why pay extra in the form of XRP?
The reason associated with this is pretty clear that XRP is known for its security promises. One can’t just be added into the currency after solving the complex equations stated, you need to be known to all the majority stakeholders before being added.
XRP’s transaction processing as well as the protocol of centralising things is what made it one of the most famous projects.
As of this point, you must have got an idea about the importance as well as the uses of XRPs. Thus moving ahead, let’s take a look into the XRP court case.
The XRP Court Case:
More famously known as the Ripple Lawsuit, it is the case going on from Dec 21, 2020. On this date, The US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, the company that created the XRP currency, alleging that Garlinghouse and Larsen (Ripple's current and former chief executives) sold XRP in an unregistered securities offering for $1.3 billion.
The lawsuit asserts that Garlinghouse and Larsen additionally conducted private, unregistered sales of XRP totalling over $600 million in addition to structuring and marketing the XRP sales utilised to fund the business operations.
By failing to register their XRP offers and sales or adhering to any applicable exemptions, the defendants allegedly violated the federal securities laws' registration requirements.
SEC vs XRP Latest Updates:
Over a year has passed since the SEC took its unexpected action against Ripple, igniting the most closely watched spat in the cryptocurrency space.
The SEC's case against Ripple after accusing it of breaking securities laws has turned into a protracted and acrimonious dispute with the future of cryptocurrency regulation on the line.
Ripple and the SEC reached an agreement on a timeline for the case's next stage, so petitions for summary judgement will be filed and heard until December.
The case will then be judged by a federal judge, who will then decide whether to dismiss it or send it to the jury.
A significant XRP lawsuit update has been made, and it has the potential to completely alter both the case and the cryptocurrency market.
In fact, every single document—including every note, brief, argument, and the SEC's request for reconsideration—is confidential lawyer-client communications, according to the SEC.
The SEC's desire to submit a reply brief in court is opposed by Ripple's legal representative, Matthew C. Solomon. Solomon emphasises in the materials that the SEC had adequate time to make all of its numerous privilege claims and to provide evidence to support them.
The discovery he attached was closed months ago, and both parties are about to file petitions for summary judgement.
Further delays would be detrimental to the Defendants, and Solomon argues that after reviewing the Defendants' answer, the SEC should at the very least be required to explain why it sought more briefing.
The latest modification in the Ripple lawsuit came on September 18, 2022, when both parties filed for a Summary Judgement.
The anticipation that a decision would be rendered before the end of the year is increased by the SEC and Ripple Labs' filing for a "summary judgement," this is a legal procedure in which a judge determines based on the evidence given without ordering a trial.
As soon as it was reported that traders were betting that XRP would win this lawsuit, the price of XRP surged.
The Future of Ripple and XRP:
The Ripple Labs crew is very skilled, and the business offers a top-notch product. Judge Analisa Torres' judgement will not be known until the final ruling is made, though. We believe that if Ripple were to prevail in its legal battle with the SEC, the token would be relisted on American exchanges, leading to a sharp increase in the price of XRP.
XRP has been constantly hitting a low price point since December 28, 2020, when Coinbase decided to delist the token post the allegations made by the SEC towards Ripple Labs. Our speculations are based on the decisions made by the court to date and thus, we strongly believe that once a firm decision is portrayed to us, the prices of XRP can be expected to surge.
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