This big Ripple victory could bring the XRP case to an end soon. Find out more in this article.
Ripple, the creator of the XRP blockchain, has won a significant victory in its ongoing legal battle with the US Securities and Exchange Commission (SEC). In December 2020, the SEC filed a lawsuit against Ripple for allegedly selling unregistered securities. They claimed that XRP is a security instead of a commodity.
The judge denied the SEC’s motion for reconsideration of the deliberate process privilege regarding a collection of emails and draft versions of a speech given by then-SEC Director William Hinman in June 2018. To put it another way, the SEC must share these communications as well as draft versions of the 2018 speech.
#Ripple CEO @BGarlinghouse said the #XRP lawsuit has gone exceedingly well, and much better than he could have hoped when it began 15 months ago and @Ripple is still having record growthhttps://t.co/lR0wqbd6aG
— XRPcryptowolf (@XRPcryptowolf) April 15, 2022
As the company’s legal battle with the US Securities and Exchange Commission nears a conclusion, Ripple CEO Brad Garlinghouse is optimistic. He said: “The lawsuit has gone really well. Far better than I could have dreamed when it was first started some 15 months ago”. Furthermore, he said that this case is important for all crypto industry in the US. Because if Ripple loses, most tokens that trade on platforms in the United States would be considered securities. They will need to register as broker dealers with the SEC.
What does it mean for Ripple and SEC?
This motion is the “largest decision in the XRP lawsuit” so far. It is because of the implications for the outcome of the case, the future of both Ripple and the SEC, and likely the whole cryptocurrency ecosystem in the United States.
Earlier this month, the organization Empowerment Oversight made public a different collection of internal SEC emails. That emails showed evidence of improper conduct by SEC officials involved in the Ripple lawsuit and revealed a conflict of interest.
Former SEC Director William Hinman is notified of the conflict in emails released by Empowerment Oversight. Hinman has a potential conflict of interest with the Ripple case. His prior employer, Simpson Thacher, had worked to promote Ethereum.
The emails/draft versions connected to Hinman’s 2018 speech, may show that the SEC was selectively enforcing restrictions in the cryptocurrency industry. They could also show that Hinman was informed of a conflict of interest when the case against Ripple started.
This important Ripple victory could bring the XRP lawsuit to a finish sooner rather than later. Many people familiar with the issue believe the SEC would rather settle than hand over its own documents. The SEC has 14 days to file an objection to District Judge Torres’ decision.
The decision could be an even larger win for Ripple. Because it includes a “bullet proof section” it will prevent an appeal, forcing the SEC to settle even sooner.
XRP Price Reaction
The market appears to be positively reacting to this news. But on a longer timeframe, XRP is still trending lower, much below its $2 peak from 2021. If the case settles, XRP might rise to these levels.
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