Ripple v. SEC Lawsuit Update July 1st
TL;DR
Ripple’s ongoing legal battle with the SEC over XRP sales has seen some favorable rulings for the company.
The lawsuit’s outcome is expected to cause significant volatility for XRP and the broader crypto market, with potential for a rally if Ripple wins.
The Case’s Current Status
It’s been over three and a half years since the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, alleging it and some of its executives of conducting an unregistered security offering through the sale of XRP. The case went through numerous ups and downs, becoming one of the hottest topics among crypto participants.
Some of the most important developments took place last year, and they seemingly placed the SEC as the underdog in the legal battle. In July 2023, Judge Torres ruled that Ripple’s programmatic sales to secondary trading platforms did not constitute offers of investment contracts.
Shortly after, the magistrates dismissed the regulator’s intentions to appeal the decision, while CEO Brad Garlinghouse and Executive Chairman Chris Larsen were cleared of all charges.
The case entered its trial phase in April this year, and a resolution might come any day. However, the complexity of the legal process and other essential factors may prolong the lawsuit indefinitely.
The potential penalty on Ripple seems to be a bone of contention. The SEC initially sought a $2 billion fine on the firm, while the latter insisted on no more than $10 million. Most recently, the agency lowered its demand to $102.6 million, stating:
“Ripple avoids comparing the Terraform settlement’s penalty to the gross profit of the violative conduct. That ratio ($420 million/$3.587 billion) is significantly higher: 11.7%. Applying it to the $876.3 million in gross profits, the SEC here asks the court to disgorge, which results in a much larger figure, a $102.6 million penalty, than the $10 million ceiling Ripple insists on.”
The Possible Impact on XRP
Some believe the lawsuit’s eventual outcome will cause huge volatility for Ripple’s native token and the entire cryptocurrency market. A decisive win for the company may be followed by an XRP rally, an effect that was observed after the first partial win last year.
On the other hand, an SEC victory may have the opposite effect, triggering a potential pullback for the crypto sector. Those curious to learn more about the case and its impact on XRP, please take a look at the video below:
The post Ripple v. SEC Lawsuit Update July 1st appeared first on CryptoPotato.
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