A Call for Resolution in the Ongoing Ripple vs. SEC Battle
The protracted legal conflict between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has been a focal point in the crypto industry since it commenced in December 2020. With the dawn of a new administration, Ripple’s Chief Legal Officer, Stuart Alderoty, is fervently calling for an end to this enduring litigation. This legal battle, which began during Joe Biden’s presidency, has now persisted for an extensive four years.
Alderoty’s Plea to Conclude the “Lawless Lawsuit”
The case centers on allegations that Ripple raised $1.3 billion through the sale of XRP as unregistered securities. As the lawsuit marks its fourth anniversary, Alderoty has publicly denounced it as a “lawless lawsuit.” He took to social media to express his demands for a resolution, urging the incoming Donald Trump administration to address lingering issues and restore trust in the SEC.
On this 4th anniversary of the SEC’s lawless lawsuit against Ripple, Brad, & Chris, we urge the incoming administration to cleanse the lingering stain of Hinman from the agency. There’s much more to do to repair the damage, but let’s start by restoring trust.— Stuart Alderoty (@s_alderoty) December 22, 2024
In a significant development in July 2023, Judge Analisa Torres ruled that XRP did not infringe upon securities laws, with other judges echoing criticism of the SEC’s arbitrary actions. This ruling has been a pivotal moment in reshaping the narrative around the case.
Clarity Needed in Crypto Regulations
Alderoty emphasizes the importance of addressing the confusion sown by former SEC official William “Bill” Hinman. His statements on cryptocurrency regulations have been a source of conflict within the industry. Alderoty sees a potential opportunity for clarity and trust-building within the sector with a crypto-friendly SEC chair like Paul Atkins.
Advancements in Ripple’s Legal Challenges
Despite the ongoing hurdles, Ripple has made noteworthy progress in its legal battles. The SEC is poised to submit its opening brief by January 15, coinciding with Gary Gensler’s departure as SEC Chair. The agency is appealing a prior ruling that favored Ripple, specifically regarding XRP’s sales and distribution.
Resolution of Class Action Lawsuit
In a separate development, a class action lawsuit involving Ripple, its subsidiary XRP II, and CEO Brad Garlinghouse is approaching resolution. A district court recently ruled in Ripple’s favor, and both parties have consented to expedite the final judgment, marking a positive turn in Ripple’s legal journey.
Influence of Legal Proceedings on XRP Price
The lawsuit has had a profound impact on XRP’s market value. From its all-time high of $3.38, the price plummeted to a low of $0.15. However, in a remarkable rebound, XRP has surged nearly 500% in the past month, currently trading at $2.18. Analysts speculate that maintaining a position above the 26 EMA could attract more buyers, potentially driving the price to $2.40. Increased transaction volumes may further signal a recovery, with prospects of reaching $2.60 and ultimately $3.
