Stuart Alderoty, the Chief Legal Officer of Ripple, stated on February 20, 2023, that he anticipated his business would ultimately prevail in its fight against the SEC’s assertion that its XRP coin was a security.
“The SEC has lost 4 of its last 5 cases in the Supreme Court, thanks to the few that had the bravery and resources to fight back against the SEC’s bullying and hold to stretch legal arguments that were not faithful to the law,” he wrote in a tweet.
I have no doubt Ripple will win and the current Supreme Court will shut down the @SECGov’s gross overreach. The West Virginia 🆚 EPA case is all you need to read to agree with me. @Ripple’s summary judgment brief is already an extremely well written appellate brief. https://t.co/o3g9zML9S2— John E Deaton (@JohnEDeaton1) February 20, 2023
According to Brad Garlinghouse, CEO of Ripple, who spoke to CNBC on January 18, “We’re hopeful that this will definitely be resolved in 2023, and possibly [in] the first half. So, we’ll wait and watch how things develop. Nonetheless, I am extremely pleased with where we stand in terms of the law and the evidence.”
Garlinghouse added: “We have always indicated that we would love to settle, but it requires one very crucial element, and that is that, on a go-forward basis, it’s obvious that XRP is not a security. I expect the final decision in the Ripple litigation to be handed down “in the single-digit months.”
Ripple vs SEC: Case Analysis
Ripple is accused of using illegal methods to raise more than $1.3 billion, according to the lawsuit, which was filed on December 22, 2020. The Co-founder of Ripple, Christian Larsen, and the current CEO, Bradley Garlinghouse, are also held liable in the SEC lawsuit because they profited greatly from the situation.
The native cryptocurrency of the Ripple Blockchain, XRP, will be regarded as a security rather than a currency in the US if the SEC prevails in the legal dispute. In turn, this might create a legal standard that leads to the classification of related cryptos as securities. All participants in the cryptocurrency industry, including investors, blockchain pioneers, and global lawmakers, must thus pay attention to the case against Ripple.
XRP Battle with SEC
The primary legal dispute that began more than a year ago, when the SEC filed its complaint against Ripple, asserting that it is an investment contract, is the reason why XRP is lagging behind the rest of the cryptocurrency market. The outcome of this lawsuit will affect how blockchain technology is developed in the United States for upcoming generations.
Ripple’s legal battle with the SEC has been fraught with difficulties. One new development was that Judge Analisa Torres gave them permission to react, which they did earlier this month with fair notice of defense.
The Price of XRP is Uncertain
Ultimately, it is anticipated that the legal ruling will have an impact on the future of XRP. For instance, it can be positive for XRP if the court rules in the blockchain company’s favor. On the other hand, if the judge rules that XRP is a security, this might be bad news for the asset.
Following today’s flash drop, XRP is now pushing for a price point over $0.35. The market seems ready to snap its two-session losing trend. For the last twenty-four hours, it has increased by 1.6%.
Despite the frequent commentary on the case, investors continue to exercise caution when choosing an asset to invest in because the case’s trajectory is anticipated to produce extremely high volatility, which might lead to either massive gains or losses. The case’s subsequent court date is set for January 4.
Ripple has released 1 billion XRP tokens from escrow in a sequence of three transactions for January, even though the market is still quite volatile. After the publication on December 1, 2017, the most recent transactions mark the second straight month of escrow transactions.
Experts’ Opinions on Ripple’s Future
This case might be nearing its conclusion, which would lead to a higher increase in the price of XRP.
DFG’s Founder and CEO, James Wo, said:
The conclusion of a legal dispute is frequently viewed as a bullish indication by supporters, regardless of the outcome of the trial, judgment, or behind-closed-doors deal, as we have seen throughout the history of technology. If the protracted trial does really finish in the coming months, this surge might mark the start of a bullish phase for XRP.
Because there is now a newer, more widely used payment token on the market, some individuals believe that XRP will become less popular among investors.