Court case between SEC and Ripple even after a year and a half without any decision
At least the SEC was able to get an extension of the hearing of the evidence.
The chances of a ripple victory on the court are increasing rapidly.
Ripple has been criticized for several months now. The US Securities and Exchange Commission (SEC) sued Ripple’s leadership in December 2020 over an unannounced sale of Ripple tokens that allegedly took place back in 2014. However, the SEC finds it extremely difficult to prove the illegality of this alleged crime, especially since other cryptocurrencies such as bitcoin or ether are not covered by this securities law. At least the SEC can now delay the court process in exchange for disciplinary penalties, and the deadline for taking evidence has been pushed back.
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Ripple Litigation with the SEC from 2020
Ripple has been in legal dispute with the US Securities and Exchange Commission since December 2020. Reason for the lawsuit: In 2014, Ripple executives sold $1.3 billion in Ripple tokens (XRP) – according to the SEC, however, this was an illegal sale of securities that the SEC previously granted due to the high volume. Accepted. Ripple, on the other hand, believes that XRP, like other cryptocurrencies, is not a security, but a commodity or currency-like investment category to which securities laws do not apply. The catch with this logic: XRP is produced directly by Ripple and used to finance its own business. The SEC argues that XRP should be equated with security in this case.
Ripple: Between Peer-to-Peer Payment Method and Cryptocurrency Provider
The tricky thing about the court hearing: It is highly controversial whether the category of securities is suitable for the Ripple token. Ripple is a company that wants to offer a global peer-to-peer payment method on the Internet on the one hand, but on the other has created its own crypto coin with XRP. Success varies: XRP has been one of the top ten largest cryptocurrencies for several years, while Ripple’s peer-to-peer network has not made any significant progress since the legal dispute. However, XRP is required for internal payment transactions in the Ripple network to avoid network spam. In addition, the entire company is financed by an increase in the value of Ripple coins. It is precisely this complex, intertwined business concept that can be considered one of the most important reasons for the ambiguity of the stated facts.
The Court’s decision is of great importance for Ripple – and the crypto world
When Ripple’s lawsuit began in late 2020, several crypto exchanges removed XRP from their products. Ripple co-founder Chris Larsen in particular, who recently made a name for himself with a large donation to green bitcoin, has faced severe criticism. Regardless, 2021 was not a bad year for Ripple, with on-demand liquidity payments increasing on RippleNet. XRP was also able to recover substantially after a weak 2020, although the increase was less strong than most competing cryptocurrencies.
However, the court battle over Ripple’s uncertain future hangs like Damocles’ sword. Ripple’s unfavorable decision could set a precedent for the SEC to target other suspicious crypto transactions. However, at least from today’s perspective, it can be considered more likely that Ripple will turn away from a black eye. The SEC is in dire need of an explanation as to why it filed suit against Ripple just six years after the alleged crime — and why the tokens really are trading securities target. Furthermore, the documents filed by the SEC will raise more questions than answers, reports “Bitcoin2Go”. Ripple’s victory in court could be another step towards a mainstream cryptocurrency. However, a final decision in the court case can only be expected in October or November 2022, as watching attorney James Filan recently tweeted.
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