The legal battle between Ripple and the United States Securities and Exchange Commission (SEC) continues to be a topic of great interest and discussion within the cryptocurrency community. As the case moves towards its second court battle, co-founder of Ripple, Chris Larsen, recently shared his perspective on the matter during a Bloomberg interview on September 6.
One notable point highlighted by Larsen is that, in his view, the SEC did not achieve its primary objectives in the legal proceedings. This observation comes on the heels of a partial victory for Ripple, where the court ruled that XRP, the cryptocurrency associated with Ripple, should not be classified as a security. This ruling marked a significant milestone in the ongoing legal saga.
While the legal process is far from over, Larsen emphasized the importance of the case’s outcome, not only for Ripple but for the broader cryptocurrency industry. He views this legal battle as a pivotal juncture that could shape the future regulatory landscape for cryptocurrencies. The case has drawn considerable attention because it could potentially set precedents for how cryptocurrencies are classified and regulated in the United States.
As the legal battle between Ripple and the SEC continues to unfold, it remains a closely watched case in the crypto world. Many stakeholders, both within and outside the industry, are keenly interested in the implications it may have on the regulatory framework for cryptocurrencies moving forward.
“I think the bottom line is the SEC lost on everything that was important to them and important in regulation of the industry. The case still continues, or there are appeal processes that everybody has the right to do. But we think that this is really groundbreaking,” he said.
The executive’s sentiments come after Ripple opposed the SEC’s plans to appeal the verdict. Ripple contends that the regulator has not fulfilled all the necessary prerequisites to justify an appeal in this case.
XRP weakened by SEC
Meanwhile, pro-XRP lawyer John Deaton, in an X (formerly Twitter) post on September 7, stated that the SEC’s case had harmed XRP despite the initial court ruling favoring the cryptocurrency.
“The damage to XRP’s adoption in the United States is very significant. <…> Because the SEC was claiming XRP was a security, including secondary market sales, independent of Ripple, and Coinbase needed the SEC’s approval to go public and issue an IPO, Coinbase felt compelled to suspend/delist XRP from its platform,” he said
The legal battle between Ripple and the United States Securities and Exchange Commission (SEC) is set to continue into 2024, with the possibility of a settlement still on the table. Attorney John E. Deaton, who is representing XRP holders in the case, has previously suggested that a settlement could be a potential outcome.
One key development that could influence the path of the case is the outcome of the Coinbase case, which also has implications for the classification of cryptocurrencies under U.S. securities laws. If the judge overseeing the Coinbase case approves the exchange’s request for dismissal, it would signal that token sales conducted on the platform are not subject to U.S. securities laws. This decision could have a significant impact on the SEC’s ability to pursue an appeal in the Ripple case, potentially making a settlement more likely.
Ripple’s CEO, Brad Garlinghouse, has previously stated that the company is open to resolving the matter before a summary judgment decision, but such a resolution would hinge on the SEC’s determination that XRP should not be classified as a security.
As the legal proceedings continue, the crypto community and market observers will closely monitor any developments that could provide insights into the eventual resolution of the Ripple-SEC case, which has broader implications for the regulatory landscape of cryptocurrencies in the United States.
XRP price analysis
In the meantime, XRP continues to trade in a consolidation phase, aligning with the broader cryptocurrency market. At the time of this report, XRP was trading at $0.50, showing daily losses of approximately 0.20%.
