Discover the latest updates in the ongoing legal battle between Ripple and the SEC, along with the potential implications for the future of XRP. Stay informed about the developments shaping the Ripple vs. SEC case and its impact on the cryptocurrency market.
Unveiling the Ripple vs. SEC legal battle that began in 2020 and its ongoing impact on the cryptocurrency industry. Explore the accusations against Ripple for conducting an unregistered security offering and the implications for XRP’s future. Stay informed about the latest developments in this high-stakes case.
Decoding Ripple Vs. SEC
Under the leadership of Gary Gensler, the SEC has transformed into an openly anti-crypto institution, with no attempts to conceal it. However, this information was not widely known in 2020 when the initial action took place. In December of that year, the SEC accused Ripple of conducting a $1.3 billion unregistered security offering, claiming that XRP is a security. At the time, Stephanie Avakian, the Director of the SEC’s Enforcement Division, made the following statement:
Ripple firmly defends its stance that XRP should be classified as a currency rather than a security. However, during that time, the value of XRP declined significantly as numerous exchanges removed it from their listings due to concerns about the SEC’s actions.
In a show of support for Ripple, Coinbase publicly stood by the company by filing an amicus brief, commonly known as a “friend of the court” filing, in support of Ripple’s ongoing legal battle.
An Ongoing Battle: Ripple Vs. SEC And The Future Of XRP
Several months have elapsed, and neither side shows any intention of backing down, making quick resolutions unlikely. Ripple’s defense relies heavily on what is known as the Hinman Speech. William Hinman, a former director of the SEC’s Division of Corporation Finance, delivered this speech, where he suggested that Ethereum (ETH) was not considered a security by the agency at that time.
Ripple’s legal team has actively pursued obtaining additional information regarding the basis for Hinman’s conclusion, hoping that it could influence the classification of XRP. After approximately 18 months of effort, they successfully obtained the relevant documents in October 2022. Throughout the process, Ripple faced numerous objections from the SEC, including a recent request to seal Hinman’s Speech, which was ultimately denied by Judge Analisa Torres.
The situation appears to be favoring Ripple, and this sentiment is already reflected in the performance of XRP, as investors are becoming more optimistic about a positive court ruling. The SEC appears to be experiencing tension, which is evident from recent developments.
As we reported recently, the Commission has seemingly removed Hinman’s biography from its website. It’s worth mentioning that the SEC has a deadline until June 13th to provide unredacted emails related to Hinman’s internal communications, and many are eagerly awaiting this deadline.