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Ripple Gains Edge in SEC Lawsuit, Charges Dropped

Key Takeaways
  • A judge denied the SEC's appeal in the case against Ripple, making it a win for Ripple​​​
  • SEC dropped charges against Ripple executives, showing a weaker stance from the SEC​​
  • Legal discussions hint at a potential settlement between the SEC and Ripple, possibly by April 2024​
23-Oct-2023 By: Simran Mishra
Ripple Gains Edge in

Ripple Gains Upper Hand in Court Battle as SEC Drops Some Charges

The United States Securities and Exchange Commission (SEC) and the blockchain company Ripple have been having legal battles. Recently, things are looking good for Rippleas they have had several court wins. The SEC even dropped some charges against Ripple's top leaders, CEO Brad Garlinghouse and Executive Chair Chris Larsen, which made it another victory for the company.

SEC's Series of Setbacks

There was a long legal fight lasting three years between the SEC (a government agency) and Ripple, a company with its own digital currency called XRP. The SEC said Ripple broke the law by not registering XRP as a security, like stocks or bonds, before selling it. However, an earlier decision said selling XRP on digital money exchanges wasn't against the law. This was a big win for Ripple. The case had hurt their business in the US, as many exchanges stopped listing XRP during the lawsuit.

On October 4, Judge Analisa Torres rejected an appeal from the SEC, saying they didn't provide strong reasons to change a previous decision. This was seen as a setback for the SEC. The situation worsened for the SEC when it dropped all charges against executives of Ripple on October 19. Ripple's main lawyer, Stuart Alderoty, called this move "a surrender" and a "huge backdown" by the SEC.

Analysts Discuss SEC's Decreasing Chances of Winning Appeal

The recent legal happenings have made many legal experts talk about what might happen if the SEC decides to appeal against Ripple again. Lawyer Bill Morgan, who has been closely watching the lawsuit, shared on X (formerly Twitter) that the SEC only has a 3% chance of winning if they appeal against Ripple. Similarly, Attorney Jeremy Hogan looked at some government data and said that the SEC only wins these kinds of appeals 14.2% of the time.

These legal opinions suggest that Ripple could have a good chance of winning if the court case goes to an appeal. Morgan believes that there might be a "final judgment" in favor of Ripple next year, which is a positive sign for the blockchain company.

The ongoing lawsuit between Ripple and the SEC has caught the attention of many in the crypto world, showing how unclear the laws are around digital assets like cryptocurrencies. Lawyers think this case could be a big deal as it might help decide how cryptocurrencies are handled legally, which could impact the overall rules around digital assets.

Also read - PBOC Head Pan Gongsheng Targets Crypto to Boost China's Economy

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