Judge’s Ruling Clears XRP of Violating Securities Law in Ongoing Battle with SEC, Sparks Support Rally
In a significant turn of events for Ripple Labs Inc, the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) has taken an interesting twist. The latest ruling by Judge Analisa Torres has cleared Ripple of violating federal securities law with its sale of the XRP token on public exchanges, delivering a partial win for the SEC. However, the ruling also prompted a surge of support for Ripple from XRP holders, led by the relentless efforts of John E Deaton, the pro-Ripple lawyer.
John E Deaton Mobilizes Thousands In Support Of XRP Holders
John E Deaton, a staunch advocate for the rights of crypto investors, has made waves in the crypto community by rallying thousands of individuals to join as potential amici in support of XRP holders. Taking to Twitter, Deaton shared the news of the growing number of supporters willing to stand by Ripple in the XRP Lawsuit. At the time of his announcement, the count of Coinbase customers willing to serve as amici stood at an impressive 3,000.
Deaton’s efforts received a significant boost, as did SEC Chairman Gary Gensler’s expression of disappointment with the judge’s ruling, particularly regarding its impact on retail investors involved in the XRP case. The case’s background involves the SEC’s allegations that Ripple’s sale of XRP constituted an offering of unregistered securities. However, Judge Torres’ ruling favored Ripple, stating that the company had not violated federal securities law in its XRP sales on public exchanges.
In response to the ruling, an SEC spokesperson told Reuters that the agency was satisfied with the portion of the decision that held Ripple accountable for its sales to hedge funds and other sophisticated buyers, totaling $728.9 million. This aspect of the ruling provided some respite to the SEC amidst the broader setback.
Following the favorable ruling for Ripple, Coinbase, the largest cryptocurrency exchange in the United States, has taken action by resuming the trading of Ripple on its platform. Coinbase had been one of the first exchanges to delist the Ripple coin when the SEC initially sued Ripple Labs in December 2020. As a result of the renewed trading support, XRP is currently trading at $0.7485.
Despite this recent ruling in favor of Ripple, the legal battle is far from over. Experts and analysts predict that the SEC is likely to appeal the decision. John Reed Stark, Former Chief of the SEC Office of Internet Enforcement, believes that the judgment in the XRP lawsuit will be subjected to further challenges in the appellate court.
As the crypto community awaits the next steps in this high-stakes legal saga, XRP holders remain hopeful that John E Deaton’s mobilization efforts and the court’s partial ruling will ultimately tip the scales in favor of Ripple. The outcome of this case may significantly impact the regulatory landscape for cryptocurrencies, especially concerning the classification of digital assets as securities, and may set a precedent for future cases involving other crypto projects.