Ripple Vs Sec: Ex-SEC Director Denies Ripple Settlement Deal
The SEC v. Ripple is a case of massive significance for the crypto industry, and everyone has been on the edge of their seats waiting for the verdict. Here’s a close look at where things stand at the moment.
Background For The Case
In December 2020, the Securities and Exchange Commission dropped a bomb on the crypto industry by suing one of the most prominent companies, Ripple, and two of the firm’s top executives for selling unlicensed securities in the form of the token XRP.
The exclusive release of Bill Hinman’s speech, followed by the SEC director’s meeting calendar, made the battle much more intense. Both parties have filed motions for a summary judgment in the XRP lawsuit.
If a judge concludes that XRP is a security, Ripple likely will crumble, and the ruling will give the SEC a powerful weapon to go after other blockchain projects.
Will The Parties Reach A Resolution Soon?
The case could have tremendous implications for other crypto firms and their native coins, as anticipated by crypto onlookers. If Ripple prevails, crypto firms would have a precedent-setting case to argue that it should not be considered a security.
If the SEC prevails, Chair Gary Gensler gets another feather added to his cap as he is a crypto regulator who likes to put squash crypto firms under his thumb.
As per the reports from John Deaton and Amicus Curiae in the XRP lawsuit, the Ripple CEO or Counsel tried to settle a pre-suit with the SEC when the US authority started looking for regulations in the crypto market.
He added that they were willing to settle without any declaration by the SEC by involving the ongoing and future sales of the XRP token without considering it as a security.
Ripple would have paid a fine to settle the lawsuit to move forward with its status quo. However, it is still unclear whether the SEC would have been behind the other firms selling the same token as a security or not.
When examined closely, this deal would have been disastrous for Ripple and hampered the firm’s growth in the US.
Fortunately, as per the reports by a Fox journalist, Hinman killed the deal, which displayed that the battle was more than the appearance of wrongdoing but was actual impropriety.
A ruling isn’t likely until 2023, Ripple general counsel Stu Alderoty estimated.