The end of 2020 brought one of the biggest bombs in the crypto world. The Securities and Exchange Commission (SEC) sued Ripple Labs, one of the most extensive global payment networks.
The SEC claimed that Ripple sells unlicensed securities through their native token, XRP. This is a massive threat to the company and the overall crypto industry.
If XRP is declared security, Ripple will go down, and the SEC will have the power to attack other blockchain projects. However, if Ripple wins this case, the value of XRP is expected to increase significantly.
Here’s a brief overview of everything that has taken place in the SEC vs. Ripple case so far, including the potential outcome.
SEC vs. Ripple – Case Overview
Chris Larsen and Brad Garlinghouse, the co-founders of Ripple, didn’t know what was coming when a lawsuit was dropped on December 22nd, 2022.
The SEC accused Ripple of selling unregistered securities. This resulted in a significant fallout. The news of this lawsuit spread all over the crypto industry. The $28 billion market value of Ripple’s cryptocurrency, XRP, took a massive hit. This lawsuit tarnished Ripple’s reputation.
XRP was in the third position after Bitcoin and Ethereum in the cryptocurrency market for several years. Not only did people invest in Ripple, but the company also developed a relationship with central banks. However, with the lawsuit, all that was pretty much lost.
The SEC’s mission was to knock Ripple down a peg and showcase them as a scam. The SEC claimed that the company’s owners are just looking to fill their pockets through XRP. On the other side, Ripple fought back with a reply. Since the lawsuit was issued, Ripple has been fighting back and hasn’t slowed down.
So, what happens when either party wins? If the SEC ends up winning this case, then this will create an issue for the other crypto companies. If they lose, this will be a humiliating loss for the U.S.’s top financial police and their enforcement powers.
The outcome of the SEC vs. Ripple case will determine the company’s fate, which also includes the future of the crypto industry. For example, should cryptocurrencies be treated similarly to stocks? A judge will decide the answer to this question and many others once the case ends. That answer is worth billions of dollars.
Is Ripple Going to Win?
Ripple has been in a constant legal battle with the SEC for the past two years, which has left the crypto world anticipating the end result. So far, the case shows signs that Ripple might win in the end, but nothing can be said until the judge’s final decision. However, a win like this will significantly skyrocket XRP prices for Ripple.
During the case, the SEC refused to provide the essential Hinman speech and related documents to the court, which tipped the scales in Ripple’s favor and placed them in Judge Torres’ good books. Similarly, Ripple was asked to produce two amicus briefs, and they immediately complied, instead of the SEC not doing the same.
What Does Ripple’s Win Mean for the Crypto World?
As mentioned earlier, Ripple’s fate is in the hands of this case, which also includes XRP’s price in the crypto market. Throughout the case, the cost of XRP was moving in tandem with how the case was developing. If Ripple wins, XRP’s price is expected to go over $3.40, giving it a place among the next-gen coins.
“Will XRP be declared as a security?” is the question everyone’s asking. The answer could potentially overturn XRP’s price in the future. If it’s declared security, the coin with cease to exist and lose more ground.
So far, the chances of declaring XRP as security are low. If that did happen, buying XRP would be similar to purchasing a share in Ripple.
Should You Invest in Ripple?
Currently, XRP is known as the most controversial cryptocurrency in the market. So the question remains – is it safe to invest in XRP? Crypto experts believe that the answer to that is a yes. Despite the SEC vs. Ripple case, XRP remains one of the most popular cryptos after Bitcoin and Ethereum.
If you want a more specific answer at a more optimal time, our expert crypto signal providers are there for you. You will receive expert recommendations regarding which crypto to invest in.
SEC vs. Ripple: Bottom Line
The SEC vs. Ripple case might be coming to a close after years of legal drama. Both Ripple and the SEC have agreed to a joint proposal regarding the sealing issues before Judge Torres’s ruling on the summary judgment motions. This means that both parties will get access to the details of briefs, including other unseen documents if the judge grants this request.
From the start of the case, the SEC and Ripple were butting heads, and there were no chances of agreeing to any settlement, despite all the rumors circulating. However, agreeing to a joint proposal is a significant sign that a payment might be coming.
The ruling on summary judgment motions will probably take place next year as 2022 comes to a close. This is according to the latest schedules filed in this case. The outcome of this case will have significant implications for the regulation of cryptocurrencies and the jurisdiction of the SEC over the industry.
To summarize, the SEC vs. Ripple case result will have significant consequences for the cryptocurrency industry, regardless of which side wins. The final decision made by the judge will be a critical moment.
Update: In July 2023, Ripple emerged victorious in its case against the U.S. Securities and Exchange Commission (SEC) regarding classifying its cryptocurrency, XRP. The judge ruled that while Ripple did violate federal securities law by selling XRP directly to sophisticated investors, it did not violate the by selling XRP public exchanges.
This landmark legal victory for Ripple has sent the value of XRP soaring and has sparked calls for the regulatory status of digital assets.