Ripple Lawsuit: Current Status and Future Prospects
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The Ripple Lawsuit Continues to Unravel Post-SEC Meeting
The much-anticipated closed-door meeting of the U.S. Securities and Exchange Commission (SEC) on July 10 has concluded, leaving the fate of the Ripple lawsuit unresolved. The cryptocurrency community was abuzz with rumors that the SEC might consider dropping its long-standing legal battle with Ripple during this meeting. However, the outcome has not aligned with these expectations.
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Despite the speculation, former SEC attorney Marc Fagel had previously cautioned that the Ripple case was unlikely to be a topic of discussion at this particular meeting. The agenda primarily focused on various regulatory matters, including the initiation and resolution of injunctive actions and other enforcement proceedings.
In a post-meeting analysis, Fagel confirmed that the Ripple lawsuit remains active, emphasizing that the SEC must adhere to a standard regulatory process. This procedural journey often spans several weeks or even longer. Only after the Commissioners reach a consensus to withdraw the appeal will the SEC proceed to file a formal dismissal, in collaboration with Ripple.
Last month, Ripple had already announced its intention to drop its cross-appeal against the agency, signaling a desire for resolution. Ripple’s CEO, Brad Garlinghouse, expressed optimism that the SEC would reciprocate, based on a prior settlement agreement. If both parties agree to dismiss their respective appeals, it could mark the end of a protracted legal ordeal spanning nearly five years.
Potential for Accelerated Voting Due to Prior Agreements
According to another statement by Marc Fagel, the SEC’s voting process on enforcement recommendations typically requires one to two months. However, he suggested that the timeline might be expedited in this case, given that the SEC previously voted to dismiss an appeal related to the lawsuit. The existing settlement agreement could render another vote more procedural than deliberative.
In response to Garlinghouse’s assertion that Ripple had emerged victorious against the SEC, Fagel pointed to Judge Torres’ ruling. The judgment concluded that Ripple had illicitly raised substantial funds through unregistered securities sales, resulting in a $125 million penalty. The injunction also prohibits Ripple from future legal infringements.
As of now, XRP, Ripple’s digital currency, is experiencing a notable price increase. According to CoinMarketCap, it is trading at approximately $2.56, reflecting a 5% rise over the past 24 hours.
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