Ripple vs SEC Lawsuit Ended : Can We Expect XRP ETF’s Soon ?
XRP’s price surged 26% as a New York federal judge moved closer to ending the three-year securities lawsuit against Ripple Labs. This legal milestone is seen as a “victory” by Ripple executives and holds significant implications for the crypto industry.
Court’s Decision
On August 7, the judge ordered Ripple Labs to pay a $125 million civil penalty and “permanently restrained and enjoined” the company from violating U.S. securities laws. Ripple Labs CEO Brad Garlinghouse declared in an X post,
“This is a victory for Ripple, the industry, and the rule of law. The SEC’s headwinds against the whole of the XRP community are gone.”
Co-founder Chris Larsen added,
“The SEC’s unhinged campaign against us is finally over. Let’s all hope this ends this Administration’s war on crypto.”
Market Reaction
Crypto commentators noted the positive impact on XRP’s price. Fred Rispoli, a crypto lawyer and founder of Hodl Law, observed,
“Overall, a HUGE win for Ripple. Although I’m surprised at the $125M hit, Ripple more than made that just on the price move in XRP in the last 5 minutes.”
Crypto researcher Ripple Van Winkle celebrated this victory
“XRP IS READY TO FLY. NO MORE HOLDING IT BACK! NO MORE PRICE SUPPRESSION! THE LAWSUIT IS DONE!!”
Regulatory Clarity and Remaining Questions
The lawsuit’s conclusion provides regulatory clarity for XRP, bringing relief to Ripple and its supporters. However, Versan Aljarrah, the founder of Black Swan Capitalist, emphasizes that several critical questions remain despite the end of the legal battle.
Questioning the SEC’s Actions
The SEC’s approach towards Ripple was controversial from the start. Analysts argue there was no legal precedent for the SEC’s actions, suggesting a conflict of interest. This inconsistency is evident compared to how other digital assets like Ethereum, Bitcoin, and Solana have been treated, raising concerns about the SEC’s true motives.
Impact on Retail Investors
The SEC’s actions against Ripple negatively impacted retail investors, causing financial losses and delaying the benefits of Ripple’s technology. Analysts argue the SEC’s approach stifled innovation, created confusion, and violated laws, necessitating accountability.
Calls for Accountability
Figures like Senator Elizabeth Warren, Representative Maxine Waters, and SEC Chair Gary Gensler have faced scrutiny for their roles in this regulatory saga. Independent lawyers, journalists, and former SEC officials have highlighted their involvement in the collapse of institutions like TerraLuna, Celsius, Gemini, and FTX. The ongoing investigation into “EthGate” underscores the need for transparency within the SEC.
Legal Action Against the SEC
There is a growing call for Ripple to sue the SEC to expose regulatory overreach, misconduct, and potential criminal behavior. Ending the Ripple lawsuit is just the beginning of addressing broader concerns and holding bad actors accountable.
Looking Ahead
The settlement requires Ripple to pay $125 million in civil penalties and agree to an injunction against future securities law violations. An SEC appeal is expected, potentially extending the legal proceedings.
Will both parties drag the case further, or is this the finale to the decade-long Ripple vs. SEC saga? Stay tuned for more on this landmark case and its impact on the cryptocurrency industry.
