Ripple (XRP) v. SEC Lawsuit: The Most Important Developments in 2023
TL;DR
- Ripple had several partial legal victories against the SEC in 2023, including a ruling favoring its XRP sales and the clearing of its executives from allegations.
- The court’s decisions led to positive market reactions for XRP, with major cryptocurrency exchanges re-listing the token.
- The final trial in the Ripple-SEC lawsuit is set for April 2024, with outcomes eagerly awaited by the cryptocurrency sector, as they could significantly influence the market and regulatory environment.
Ripple’s Winning Streak in 2023
The whole fiasco between Ripple and the United States Securities and Exchange Commission (SEC) started in December 2020. Back then, the watchdog fired the first shot, accusing the blockchain enterprise of selling XRP (the native token of the entity) in an unregistered security offering.
That action caused a heated battle, with both sides showing no signs of stepping back. Years passed by until one of the organizations took the upper hand. This happened in July 2023 when US Federal Judge Analisa Torres ruled that Ripple’s XRP sales to retail investors did not constitute an offer of investment contracts. Unsurprisingly, the court’s decision positively affected the price of the token, which briefly surpassed $0.80.
It also triggered a wave of support from leading cryptocurrency exchanges, such as Coinbase, Crypto.com, and Kraken, which re-listed XRP on their platforms.
Unhappy with the ruling, the SEC, under the regimen of Gary Gensler, attempted to appeal. However, the US magistrates dismissed that option, finding no substantial ground for a difference of opinion from the initial decision, giving Ripple a second partial victory.
The regulator had to endure a third setback at the end of October when Ripple’s CEO – Brad Garlinghouse – and Executive Chairman – Chris Larsen – were cleared of all accusations brought by the SEC.
The Battle is Not Over
Besides granting Ripple three major (yet partial) wins, the US magistrates have not said their final word on the case. At the beginning of October, they set April 23, 2024, as the date of the grand trial between the entities.
A month later, Judge Torres required both parties to comply with all necessary procedures before meeting in court. The SEC must file its brief with respect to remedies by March 13, 2024, whereas Ripple must file its opposition by April 12, 2024.
The outcome of the lengthy battle is anticipated by numerous cryptocurrency participants since a decisive victory for the blockchain firm could lead to an overall market boom and increase the legitimacy of the whole industry.
On the other hand, a potential win for the SEC might negatively impact the digital asset sector and prompt the implementation of stringent rules that could hamper investors’ interest.
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