Massive Developments in the Ripple v SEC Lawsuit Expected This Week: Details
TL;DR
- The legal battle between Ripple and the US SEC, centered on allegations of illegal XRP sales, is set to continue with a trial on April 23.
- Contrary to settlement speculations, Ripple’s Chief Legal Officer confirmed that the two parties are not about to shake hands before the trial.
What’s Coming Next?
The legal spat between Ripple and the United States Securities and Exchange Commission (SEC) is about to enter its final phase more than three years after its start.
Recall that everything started in December 2020 when the regulator accused the company of illegally selling XRP in an unregistered security offering. Ripple disputed the claims, arguing that its native token should not be considered a security, thus not falling under the SEC’s jurisdiction.
The battle approaches a grand trial (set for April 23), after which a federal judge will decide the outcome. Some might argue that Ripple has a better chance to triumph since it secured three partial court wins last year.
This week will witness another important development besides the beginning of the trial. Ripple is expected to file its response to the SEC’s request for penalties by April 22. The regulator’s reply should come by May 6.
Earlier this month, multiple industry participants speculated that an agreement between the two parties may occur before April 23 due to the final pretrial conference on April 16. Ripple’s Chief Legal Officer – Stuart Alderoty – rejected the rumors:
“There is no final pretrial conference because the SEC dismissed the charges against Brad Garlinghouse and Chris Larsen.”
The Possible Effect on XRP
The resolution of the lengthy case may positively impact the price of XRP (in the event of a decisive victory for Ripple, of course). The asset’s price soared substantially after each partial victory secured by the firm throughout 2023.
On the other hand, the opposite scenario could halt the industry’s advancement and result in the implementation of strict rules.
Those willing to learn more about the lawsuit and how it might affect Ripple’s native token, feel free to check our dedicated video below:
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