Ripple’s battle against the SEC has been arduous, with no significant victories until the recent developments. Despite sporadic price surges linked to the lawsuit, Ripple’s XRP price has remained far from its all-time high (ATH). The increasing circulating supply and rising competition have further compounded the challenges. What are the latest updates in this ongoing legal tussle?
Ripple (XRP) Legal Developments
On July 13, 2023, the SEC faced a setback with the court’s summary judgment, which resulted in certain aspects of the case being dismissed. However, the SEC continues its legal pursuit, with the case potentially dragging on until mid-2026. Ripple CEO Brad Garlinghouse expressed his optimism on the anniversary of the judgment, highlighting the SEC’s ongoing failures and asserting Ripple’s rightful stance in the industry.
Recent SEC Decisions
Recently, the SEC decided to drop its investigation into STX, deeming it not a security. This shift comes alongside other legal developments, such as the PAXOS case and the sudden approval of the ETH ETF, which some link to former President Trump’s increasing support for crypto as elections approach. These actions indicate a growing recognition of the limitations of the SEC’s approach under Chairman Gensler.
Valuable Insights from the Case
Key takeaways from the Ripple versus SEC case for crypto stakeholders include:
- The court’s decision that secondary market sales of XRP are not securities provides a significant precedent for the industry.
- Institutional sales may face penalties, but the path for retail investors appears clearer.
- Ongoing legal oversight may curb the SEC’s overreach and offer more clarity for crypto regulations.
The court’s summary judgment also prompted remarks from Ripple’s Chief Legal Officer (CLO), Stuart Alderoty. His statements echoed the sentiment that the SEC’s overreach has been acknowledged by the courts, which have provided necessary checks on the regulatory body’s actions. Alderoty emphasized that while some aspects of the case remain unresolved, the crucial ruling that XRP is not a security stands firm.
The ongoing efforts of the SEC to prolong the legal battle are seen as increasingly futile, with Ripple and the broader crypto industry expected to emerge stronger. This case underscores the importance of the November 2024 Presidential elections for the future of crypto regulation and investment.