March 28, 2024

Ripple won the battle against the American regulator, but not the war

Ripple's battle with the US Securities and Exchange Commission (SEC) continues. Ripple got someadvantage, but the war with the American regulator is far from over.

The day before, the court sided with Ripple andblocked the SEC access to documents with the results of legal advice of the project. The commission applied to the court for permission to review the documents on May 7. The regulator insisted that these securities may contain discussions on the legal status of the XRP token. If the documents revealed confirmation that the cryptocurrency is securities, the Commission could use this fact to defend its position in court. But this time, the SEC did not manage to get over the heads.

However, it's too early to rejoice - Judge Sarah Netburn(Sarah Netburn) stressed that the court sided with Ripple only on this issue, but this does not mean that it will continue to adhere to this position. Nevertheless, the company's lawyers are jubilant and believe that even a small victory is an important victory. As we remember from past litigations, the SEC usually gets what it wants and leaves those it pursues with astronomical fines at best, or even no pants at all.

The lawsuit against Ripple and its executives wasinitiated at the end of December 2020. According to the SEC, Ripple CEO Brad Garlinghouse, Ripple co-founder Chris Larsen and the company itself have been involved in an “unregistered continuous offering of digital asset securities” to investors since 2013.

Charge filed with federal district courtManhattan, the commission claims the XRP token is classified as a security and accuses Ripple and two executives of raising more than $ 1.3 billion through the distribution of this digital asset. The SEC drew attention to the fact that Garlinghouse and Larsen did not register the sale of their own XRP tokens, valued at $ 600 million.

Garlinghouse is confident that the company will certainlywill win the case. According to him, the SEC lawsuit is "an attack on all cryptocurrencies." He urged participants in the cryptocurrency market not to make far-reaching conclusions about the alleged violation of the law by Ripple, but immediately after his statements in December 2020, a number of XRP delisting from major exchanges followed. MoneyGram and Grayscale and other major market players have decided to distance themselves from Ripple, not wanting to incur the wrath of the formidable regulator.

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