As a seasoned researcher and cryptocurrency enthusiast who has been closely following the intricacies of the crypto space for years now, I find it both fascinating and reassuring to see the latest developments in the ongoing saga between Ripple and the SEC. The confirmation by Stuart Alderoty that the court’s ruling on XRP not being a security will not be appealed provides some much-needed clarity in an industry often shrouded in uncertainty.
As a crypto investor, I’m pleased to share some exciting news regarding Ripple‘s legal battle with the U.S. Securities and Exchange Commission (SEC). Stuart Alderoty, Ripple’s chief legal officer, has announced that the SEC has chosen not to challenge the court’s decision classifying XRP as a non-security matter, meaning the previous ruling stands. This development brings optimism to the XRP community, including myself, as it may pave the way for greater clarity in the crypto market.
In reaction to the announcement that the Securities and Exchange Commission (SEC) submitted a civil appeal on Form C, Ripple’s legal representative, James K. Filan, affirmed that the SEC has, in fact, lodged relevant documents with the Court of Appeals.
No surprises here — once again it’s been made clear. The Court’s ruling that “XRP is not a security” is NOT being appealed. That decision stands as the law of the land.
Stay tuned for Ripple’s Form C to be filed next week.
— Stuart Alderoty (@s_alderoty) October 18, 2024
In simpler terms, Form C (“Civil Appeal Pre-Argument Statement”) is a document where the Securities and Exchange Commission expresses its desire to challenge specific judicial rulings in a particular case. For instance, in the Ripple case, the SEC requested a court review of how the law was applied during a previous summary judgment. Essentially, this implies that the judge will reexamine the legal aspects of the case rather than just the final verdict.
The regulatory body has suggested that the court should reevaluate its ruling on allowing Ripple (XRP) tokens to be traded on exchanges, as well as the personal sales of these tokens made by Ripple’s CEO, Brad Garlinghouse, and co-founder Chris Larsen.
Ripple intends to submit an appeal challenging the court’s decision on institutional sales, a move that could potentially reshape the way digital assets are categorized and governed in the long run. It has been advised to keep an eye on Rippe’s regulatory filings this week as per Alderoty’s suggestion.
How did XRP react?
Despite recent updates in the case, the value of XRP appears to be holding steady. In fact, it’s seen a rise of approximately 1.74% over the last seven days. As I type this, XRP is being traded at around $0.5468.
1 Option: That specific token hindered the expansion of the entire cryptocurrency market, which experienced a growth of 0.59% and reached a market cap of approximately $2.36 trillion within a day.
SEC and Ripple disputes will continue until next year
Based on Alderoty’s statements, this legal case might stretch all the way to July 2025. In a chat with Eleanor Terrett from Fox Business, he mentioned that they would also submit a Form C application, which includes their reasons for filing a counter-appeal regarding the crypto project.
In the next 90 days, the Securities and Exchange Commission (SEC) is expected to compile a thorough and well-prepared opening argument summary for their case. This is according to Alderoty’s expectations.
“Both parties will then agree on a briefing schedule and the SEC then has up to 90 days to file its first brief. Alderoty says he expects them to take the full 90 days. That opening brief will be a full recitation of all the legal arguments that the SEC will be making. Ripple will file a response and then its own brief. The full briefing process, according to Alderoty, will go through July 2025.”
Eleanor Terrett, Fox Business correspondent
Ripple will not conduct IPO because of SEC
Earlier, Garlinghouse discussed the prospect of Ripple listing on the stock market, emphasizing the SEC’s stance and Ripple’s financial soundness. When questioned about a possible IPO following the anticipated clarification of regulatory guidelines, Ripple’s CEO stated that it isn’t the primary ambition for the company.
Going public through an IPO isn’t something we’ve placed much emphasis on, and one reason for this is that our relationship with the Securities and Exchange Commission hasn’t been particularly friendly. To be honest, I’m not exactly a familiar face at the SEC, unless they have my photo on their dartboards.
Brad Garlinghouse, Ripple CEO
Additionally, Garlinghouse voiced his expectations for the crypto market up to 2025. Despite the present challenges within the sector, he remains hopeful, highlighting shifts in U.S. government policies and heightened attention from heavyweights like BlackRock. This suggests a surge of institutional investor interest in blockchain technologies and their potential.
He added that an improvement in the regulatory environment is important for entering the stock exchange, but Ripple has a strong financial foundation, which allows the company to continue its projects even without an IPO.
Back to the beginning: How the SEC and Ripple saga began
Last December, the Securities and Exchange Commission (SEC) brought a legal action against Ripple Labs Inc. and its founders, Christian Larson and Jed McCaleb. The case centered around the allegation that they illegally sold an undisclosed amount of XRP tokens without registering them as securities with the SEC.
The Securities and Exchange Commission (SEC) claims that Ripple issued billions of XRP tokens and sold them for over $1.3 billion without proper registration or collateral. As per the SEC, the XRP token should have been registered as a securitized asset because it gives investors an expectation of profit, which aligns with the conditions to classify it as a security. The SEC further stressed that this characterization is significant.
In response to this, Ripple maintained that XRP ought to be categorized as a digital currency rather than a security – much like Bitcoin (BTC) and Ethereum (ETH), which regulatory bodies do not classify as securities. Consequently, they asserted that their operations adhere to the relevant legal framework.
In July 2023, the court determined that the act of selling XRP to individual investors is distinct from securities trading. However, the question of major entities buying tokens through prior contracts has yet to be resolved.
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2024-10-21 22:48