Key insights:
- Strategic Legal Milestones and Ripple’s Defense: Ripple’s ability to compare its XRP coin to Bitcoin and Ether, which have not been classified as securities by the SEC, highlights a potential inconsistency in the SEC’s stance.
- The Significance of the Securities: This determination is crucial not only for Ripple but also sets a precedent for how other cryptocurrencies might be viewed and regulated by authorities in the future.
The SEC vs Ripple Labs is an emergent big legal battle about the category status of XRP, which is unfolding at present. Based on the fact that the case was opened with its litigation in December 2020, the process has been full of both gains and losses marked by significant dates that would determine the case’s ultimate outcome.
Ripple Granted Access to Bitcoin and Ether SEC Filings
Judge Netburn’s decision that the SEC should provide internal files regarding unregistered Bitcoin and Ether in January 2022 played a major role in revoking Ripple.
Unlike Bitcoin, Ether, and other market leaders, Ripple has been fighting back against the decision of the SEC for a longer period, and indeed it feels that the latter is being treated unjustly. This is because the availability of these documents could benefit Ripple’s case, as it could show the SEC’s weak stance. The SEC may resort to the last option and appeal the ruling to avoid the revelation of these records.
Ripple Strongly Denies While the SEC Considers XRP a Security
However, a substantial issue remains about whether or not Ripple’s XRP coin falls under the securities’ classification. The SEC, as per its claim, should be the one since Ripple has been running its business using XRP sales as a source of funds. Ripple disagrees and claims that XRP is not an investment, but a currency with better transfer performance around the global business.
In addition to this, the philosophical underpinnings of this social issue are truly immense. If XRP is classified as a security, Ripple might face some serious penalties because it didn’t get the authority to trade in XRP directly like other governments did.
However, Ripple XRP will be cleared, and at the same time, the main exchange might gain significant volumes.
The trial court Judge Sarah Netburn made some rulings favorable to Ripple’s side during the pretrial stage, but the outcome remains unknown.
Conclusion
The SEC vs. The Ripple case could be considered as a pinnacle moment in the cryptocurrency industry. While the case is interesting not only for recognizing the expanding nature of financial technologies and their overlapping law, it also has the potential to serve as a legal and legislative precedent. The eventual outcome of the case will be determined either by settlement, granted summary judgment, or a long period of a costly trial.
Personal Note From MEXC Team
Check out our MEXC trading page and find out what we have to offer! There are also a ton of interesting articles to get you up to speed with the crypto world. Lastly, join our MEXC Creators project and share your opinion about everything crypto! Happy trading! Learn about interoperability now!
Join MEXC Creators Project or start your travel on MEXC
This article was contributed by our guest writer. Want to share something unique with over 10 million users? Check out the MEXC Creators program.
