Ripple Labs is intensifying its legal battle with the U.S. Securities and Exchange Commission (SEC). On January 23, Ripple’s legal team filed a request, which was supported by co-founder Chris Larsen and CEO Brad Garlinghouse. The move follows the SEC’s recent brief, in which the agency argued against a significant ruling that retail sales of XRP were not securities.
In a groundbreaking decision in July 2023, Judge Analisa Torres of the New York District Court ruled that XRP is not classified as a security, marking a major victory for Ripple and the broader cryptocurrency sector. However, the court did conclude that Ripple had violated securities laws with its institutional sales of XRP tokens, which remains a point of contention in the ongoing legal fight.
This dispute dates back to December 2020 when the SEC filed a lawsuit against Ripple and its executives, alleging that the company conducted an unregistered securities offering through the sale of XRP. Since then, Ripple has maintained that XRP is a utility token and not a security, challenging the SEC’s stance on digital assets.
While the legal battle continues, market experts are speculating that the SEC’s newly appointed leadership might reconsider its approach. On January 21, Acting SEC Chair Mark Uyeda announced the formation of a crypto task force aimed at developing a clearer regulatory framework for the industry. Additionally, reports have suggested the SEC may be considering withdrawing certain crypto-related lawsuits, potentially including its appeal against Ripple’s partial victory.
This shift in regulatory focus comes as U.S. President Donald Trump signed an executive order on January 23, establishing a working group to address crypto regulations. The executive order also mentions the potential creation of a digital assets stockpile, indicating growing governmental interest in formulating clear legislative proposals for the sector.
Also Read: Ripple vs. SEC: Legal Experts Predict Dismissal or Settlement—What’s Next for XRP?
As Ripple continues its legal fight, the outcome could have significant implications for the future of XRP and the regulatory landscape for digital assets in the United States.
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.
About The Author
