- SEC ramps up Ripple’s legal battle, demanding a massive $770M settlement and aiming to set a stringent precedent in crypto regulation.
- Ripple shows resilience amid legal challenges, achieving a significant milestone with a full crypto asset license approval in Singapore.
- On Jan 17, 2024, Coinbase’s oral arguments could sway the SEC’s stance and impact Ripple’s legal fight.
Ripple Labs is now facing a $770 million settlement demand from the U.S. Securities and Exchange Commission (SEC), throwing the crypto world into a renewed state of uncertainty. The SEC, alleging violations of federal securities laws concerning Ripple’s institutional sales of its native cryptocurrency, XRP, seems to aim for more than just a legal victory. This move has intensified the longstanding legal feud, capturing the attention of legal experts and industry leaders alike as they weigh in on Ripple’s potential repercussions and future amid these challenging times.
John Deaton, a notable attorney closely following the case, has criticized the SEC for his excessively aggressive approach, describing it as a quest for “$770M worth of flesh” from Ripple. Deaton emphasized that the SEC’s objectives transcend merely classifying XRP as a security. He argued that the regulator is attempting to set a precedent and make an example of Ripple, highlighting the extensive legal proceedings and depositions reminiscent of a second, full-fledged case.
I believe Ripple will be successful in cutting the $770M figure down drastically. This isn’t a fraud case. The goal is to reach an appropriate fine against Ripple for engaging in transactions that qualified as the sale of unregistered securities, but sold in the context of a new…
— John E Deaton (@JohnEDeaton1) October 25, 2023
The SEC’s strategy has drawn comparisons to its prior case against LBRY, wherein a $23 million demand was eventually whittled down to a $130,000 settlement. Deaton suggested that this precedent may offer Ripple a glimmer of hope in significantly reducing the SEC’s current demand.
January 17, 2024, stands out as a critical juncture in this saga, aligning with the oral arguments for the Coinbase motion. The outcome of this event is poised to have far-reaching implications, potentially influencing the SEC’s stance and opening avenues for a settlement with Ripple.
Despite the legal turmoil, Ripple has demonstrated resilience and progress, particularly with its recent acquisition of a full crypto asset license in Singapore through its subsidiary, Ripple Markets APAC Pte Ltd. This achievement underscores Ripple’s commitment to compliance and ability to navigate regulatory landscapes.
Ripple Receives MPI License 📰
— Uphold (@UpholdInc) October 14, 2023
Ripple’s Singapore subsidiary, Ripple Markets APAC Pte Ltd, has received its full Major Payments Institution (MPI) license from the Monetary Authority of Singapore.
This license allows the subsidiary to operate as a digital payment token services… pic.twitter.com/zmdM4urEnK
The XRP market has responded to these developments with a slight downturn, reflecting the uncertainties surrounding Ripple’s future. The latest report shows XRP trades at $0.546484, marking a 1.78% decrease over the last 24 hours.
Ripple’s tenacity in these trying times, coupled with its strategic advancements, paints a picture of a company undeterred by legal challenges. The crypto community, stakeholders, and legal enthusiasts will undoubtedly keep a close eye on this evolving legal drama, as its outcome can shape the regulatory landscape for cryptocurrencies in the United States and beyond.
