A twist in the Ripple vs. SEC court battle: the crypto markets are reeling, but the end is still not in sight
The long-running lawsuit between the US securities regulator (SEC) and Ripple has just entered a new phase that has surprised many and appears to be over. The SEC has decided to withdraw part of the lawsuit, resulting in a positive reaction in the cryptocurrency market. However, the situation is far from definitive.
Bitcoin prices recently tried to break the psychological threshold of $30,000 per unit, but it is currently trading around $29,800. This represents an increase of 5% in the last 24 hours. Overall, other cryptocurrencies are also in a slightly positive trend, although these are not significant gains.
One of the winning cryptocurrencies of the day is XRP, which has seen an 8% rise in response to Ripple’s legal success. A civil lawsuit between the SEC and Ripple executives has been ongoing since December 2020.
In a major announcement made on October 19 in the U.S. District Court for the Southern District of New York, the SEC informed the court that the parties involved in the case against Ripple “have agreed to dismiss the complaint with prejudice.” This suggests that there is no need for the further court hearing that was planned. The SEC thus dropped the charges against Ripple CEO Brad Garlinghouse and Chairman Chris Larsen. However, it’s worth noting that it was not clear that the SEC would also drop the civil suit against Ripple itself, which was also filed in 2020.
Significantly, the SEC and Ripple intend to discuss how to proceed in this matter by November 9, 2023. This includes the issue of remedies that could be applied to Ripple for selling XRP. The move has been described by some as a “surrender by the SEC.”
Ripple CEO Brad Garlinghouse noted that the Securities and Exchange Commission (SEC) targeted him and Chris with relentlessness and that he was glad they were finally vindicated.
Some have speculated as to the reasons why the SEC dropped the lawsuit after nearly three years, even though the trial was not scheduled to begin until April 2024. Some have suggested that it could be related to the fact that the SEC might try to appeal the court’s July ruling that determined that XRP is not a security. However, this would only be possible at the end of the entire court process. This event has potential implications for other cryptocurrency firms and regulation in the US.
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