The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has entered its fourth year, making it one of the longest-running cases in cryptocurrency history. The dispute began in December 2020, coinciding with the arrival of Joe Biden’s presidency. At the heart of the case is the SEC’s accusation that Ripple raised $1.3 billion by selling XRP as unregistered securities. Despite the ongoing legal challenges, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, is now calling for an end to what he describes as a “lawless lawsuit.”
Alderoty’s demand for the lawsuit’s resolution comes as the case continues to evolve. In a recent statement, he criticized the SEC for its handling of the case and urged the incoming administration under former President Donald Trump to bring clarity and closure. He specifically pointed to the confusion surrounding statements made by former SEC official William “Bill” Hinman, whose comments on crypto regulations have contributed to industry uncertainty.
A Key Ruling and Ripple’s Legal Progress
In July 2023, Ripple secured a major victory when Judge Analisa Torres ruled that XRP did not violate securities laws. This decision was a significant blow to the SEC’s case, with other judges also criticizing the SEC for acting “arbitrarily and capriciously.” Despite this, the SEC is appealing the ruling, with a new filing expected by January 15, just before Gary Gensler steps down as SEC Chair.
Ripple has also seen progress in a separate class action lawsuit, with a district court recently ruling in its favor. Both Ripple and the plaintiffs have agreed to expedite the final judgment, bringing the case closer to resolution.
Ripple’s Market Impact and XRP Price Surge
The prolonged legal battle has had a notable impact on XRP’s price. After hitting an all-time high (ATH) of $3.38, the cryptocurrency’s value plummeted to as low as $0.15 during the legal uncertainty. However, recent developments have sparked optimism, with XRP seeing a dramatic 500% price surge in the past month. As of now, XRP is trading at around $2.18, with analysts speculating that if it holds above the 26 EMA, it could push toward $2.40 and potentially reach $2.60 or even $3.
As Ripple continues to make headway in its legal battles, the outcome of these cases could have a lasting impact on XRP’s price trajectory and the broader cryptocurrency regulatory landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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