Bitrabo Editorial
Brad Garlinghouse, the CEO of Ripple, has provided insights on the ongoing legal battle between his company and the US Securities and Exchange Commission (SEC), indicating that a resolution might be imminent.
Ripple’s Legal Dispute with SEC Expected to Conclude Soon
In a recent interview with Bloomberg, Garlinghouse expressed optimism that the SEC’s lawsuit against Ripple could reach a conclusion “very soon,” although the exact timing of the judge’s ruling remains uncertain. He refrained from confirming any ongoing settlement discussions between Ripple and the SEC.
The remaining point of contention in this protracted legal feud pertains to the appropriate actions to address Ripple’s infringement of securities regulations following Judge Analisa Torres’ earlier decision. Although XRP was deemed not to be a security itself, the sales of Ripple’s XRP to institutional investors were categorized as investment contracts, constituting a breach of securities laws.
Differing on the corrective actions needed, the SEC initially proposed a substantial fine of nearly $2 billion, later revised to $102.6 million, while Ripple advocated for a capped fine of $10 million.
Amidst the standoff, there are rumors of potential settlement talks between Ripple and the SEC. Speculations arose from a supposed closed meeting scheduled for July 18, hinting at discussions between the crypto company and the regulatory body.
Contrary to expectations, the mentioned meeting did not occur on July 18 as planned. The rescheduled meeting is now slated for July 25, though the nature of its agenda concerning the SEC’s case against Ripple remains unspecified.
One Year Later: Judge Torres’ Ruling Impact
Following the passing of a year since Judge Torres’ pivotal ruling declaring XRP as not a security, Ripple’s Chief Legal Officer Stuart Alderoty highlighted the substantial repercussions of this verdict on the cryptocurrency sector.
Alderoty emphasized the consequential effect of Judge Torres’ ruling, evident in the series of subsequent decisions, including the recent Binance case ruling by US District Judge Amy Berman, which concluded that BNB sales did not fall under investment contracts. These verdicts underscored the perceived impropriety of the SEC’s actions under Chair Gensler.
Despite acknowledging that the SEC’s case against Ripple still lingers, Alderoty affirmed the court’s stance that XRP is not a security, a position supported by the SEC’s decision not to contest this ruling.