Ripple President Monica Long has made it abundantly clear that the company is prepared to dig in for a prolonged legal battle against the U.S. Securities and Exchange Commission (SEC). This declaration is a testament to Ripple’s unyielding determination as the company confronts a protracted legal quagmire that has endured for nearly three years.
At the core of this legal skirmish is the SEC’s legal action against Ripple Labs, which has seen CEO Brad Garlinghouse and co-founder Chris Larsen also named defendants. Ripple has vehemently contested the SEC’s allegations since the outset, with the central issue revolving around the regulatory classification of Ripple’s native digital asset, XRP.
The recent courtroom drama took an intriguing turn when Judge Torres delivered a verdict with intricate nuances. The ruling clarified that programmatic sales of XRP do not qualify as securities offerings, while institutional sales could be categorized as investment contracts. Crucially, this judgment firmly positioned XRP as not meeting the definition of security.
Nonetheless, the SEC swiftly responded by requesting an interlocutory appeal, contesting the ruling and invoking the Howey test a litmus test to determine if an asset should be classified as a security. This ongoing legal volley has not escaped criticism from federal judges, who have raised concerns about the SEC’s tactics, decrying them as arbitrary, capricious, and hypocritical.
Monica Long highlighted the recent court ruling as a pivotal moment that brought much-needed clarity to the cryptocurrency industry. This newfound clarity has emboldened Ripple to expand its global reach with renewed confidence. As the legal saga rages on, Ripple remains unwavering in its mission to expose what it perceives as inconsistencies within the SEC’s stance.
Amid the legal turbulence, Ripple continues to push forward with its objective of broadening the utility of XRP in cross-border transactions. Notably, several countries have sought Ripple’s expertise and research insights as they explore the development of their Central Bank Digital Currencies (CBDCs).
Given the situation, the value of XRP has been unpredictable, dropping below the crucial support level of $0.50 due to market instability. Despite some gains, XRP is currently trading at $0.477, reflecting the recent volatility that has affected the cryptocurrency market.
