Hope flickers for XRP hodlers (holders of XRP cryptocurrency) as the landmark lawsuit between Ripple and the SEC inches closer to a conclusion. Ripple CEO Brad Garlinghouse, speaking at the XRPL Apex Summit, declared the company is nearing the “very very end” of the legal battle. While an exact date remains elusive, Garlinghouse jokingly suggested September 21st, the unofficial end of summer, as a possibility, acknowledging the final decision rests with the presiding judge.
The saga began in December 2020 when the SEC accused Ripple of selling unregistered securities in the form of XRP. The lawsuit also targeted Garlinghouse and Ripple’s executive chairman, Chris Larsen, for allegedly aiding and abetting these unregistered sales.
Turning Point in July 2023
A significant shift occurred in July 2023 when the court ruled that non-institutional XRP sales did not constitute securities offerings and XRP itself wasn’t a security. This decision dealt a blow to the SEC’s case. Later that year, the SEC dropped all charges against Garlinghouse and Larsen. Now, both parties await the judge’s ruling on remedies for institutional XRP sales.
The Price Tag of Alleged Violations
The SEC is seeking a hefty $2 billion fine for Ripple‘s supposed securities law violations. Ripple vehemently contests this, proposing a $10 million fine, arguing that investors were not financially harmed. With all relevant briefs filed, the fate of the penalty rests with the judge.
Garlinghouse Blasts U.S. Regulatory Landscape
The Ripple CEO also voiced his frustrations with American crypto regulation, claiming the U.S. lags behind the rest of the world. He further criticized SEC Chair Gary Gensler for harboring a “pretty hostile” stance towards cryptocurrencies.
The outcome of this lawsuit will undoubtedly send ripples (pun intended) throughout the crypto industry. A Ripple victory could pave the way for clearer regulations in the US, potentially benefiting other digital assets. It could also expose potential shortcomings in the SEC’s approach, prompting Congressional intervention to establish proper crypto guidelines.
XRP’s Price Hinges on a Resolution
Conversely, an unfavorable ruling for Ripple could significantly impact XRP’s future and stifle further crypto innovation within the US. As a recent ex-Ripple director pointed out, XRP’s price is unlikely to see a significant rise until the lawsuit concludes, and an unfavorable outcome could seriously hamper its growth potential.
With the legal battle nearing its climax, the XRP community waits with bated breath. Will a September resolution bring the long-awaited clarity, or will XRP’s future remain shrouded in uncertainty? Only time will tell.
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
