- The U.S. Securities and Exchange Commission (SEC) and Ripple executives seem to be edging towards no further appeals against Judge Torres’ summary judgment.
- Ripple’s top brass, including CEO Brad Garlinghouse, view the XRP lawsuit as nearing its conclusion even as the SEC mulls over appealing the remedies ruling.
- A failed SEC appeal could set a binding precedent, potentially weakening the agency’s standing in future cases.
- XRP has witnessed a price surge of over 9% over the past week.
Discover the latest in the ongoing XRP lawsuit and what it may mean for cryptocurrency regulations in the U.S.
SEC and Ripple’s Stakeholders Suggest Finality in XRP Litigation
The latest filings from the U.S. Securities and Exchange Commission (SEC) suggest that the regulatory body may not pursue an appeal against Judge Torres’ ruling in the Ripple lawsuit. This development follows Ripple’s receipt of a court order to hold off a $125 million payment. Both Ripple’s CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty have expressed optimism about the SEC not appealing the decision.
Shifts in SEC’s Legal Strategies
In an unexpected move, the SEC has opted to amend its initial complaint in the Binance case, retracting the term “crypto asset securities.” This has broader implications for how the agency pursues cases involving tokens such as Solana (SOL), Cardano (ADA), and POL (formerly MATIC). Although the SEC isn’t advancing its argument on these tokens’ status as securities, it remains steadfast in alleging that they are investments in secondary markets. This adjustment reflects a nuanced strategy shift in the SEC’s regulatory approach.
Focused Positions from Ripple Leadership
The SEC’s lingering contemplation of an appeal has elicited direct responses from Ripple executives. Brad Garlinghouse and Stuart Alderoty have stated unequivocally that they see the lawsuit as essentially concluded in their favor. They suggest that any cross-appeal rather than direct appeal could strengthen Ripple’s standing. As Alderoty pointed out, a favorable verdict in the Second Circuit Court for Ripple would create a binding precedent, which seems to undermine the SEC’s willingness to appeal without solid new evidence.
Implications for the Crypto Industry
In commenting on the lawsuit’s broader impact, Alderoty emphasized that while Ripple’s case might be over, the “fair notice” defense remains pertinent for other crypto enterprises. He noted the use of the 2017 DAO report by the SEC as a historical notice of compliance requirements for crypto asset securities under U.S. law. Ripple’s victory is poised to provide greater regulatory clarity for XRP, an aspect highlighted by Garlinghouse. The CEO notes integration developments, such as the Grayscale XRP Trust and CME XRP Index, which potentially hint at XRP’s embedding within traditional financial frameworks, including the future possibility of an XRP ETF.
Conclusion
In wrapping up, it’s clear that both the SEC and Ripple signal a winding down of the lengthy legal battle over XRP. For now, the lack of an imminent appeal from the SEC appears to favor Ripple, especially in the context of setting legal precedents. Market participants and observers can look forward to potential regulatory clarity and the ongoing integration of XRP within traditional finance. The recent 9% price surge in XRP underscores the market’s reaction to these developments, marking a significant phase in the collective journey for better-defined crypto regulations.
