As a seasoned researcher and analyst with over two decades of experience in the ever-evolving world of finance and technology, I have seen my fair share of legal battles that could shape the future of entire industries. The latest development in the Ripple vs. SEC saga is one such event that has caught my attention.
On Thursday, Ripple Labs responded by filing a cross-appeal to their ongoing dispute with the U.S. Securities and Exchange Commission (SEC). This action was prompted by the SEC’s earlier appeal filing this month, targeting the Court of Appeals for the Second Circuit.
As an analyst, I’m sharing that Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, recently expressed on his LinkedIn page that they are pursuing an appeal to exhaust all possible options in the ongoing legal battle. Alderoty previously stated that the agency had decided not to appeal the case and recognized XRP as a digital asset, not a security.
In a different court case, the financial regulatory body admitted it erred when it proposed that a digital token could be considered a security. This underscores the fact that the SEC recognizes that digital assets, such as XRP, are not inherently securities, and this understanding applies to Ripple’s current situation.
Alderoty pointed out that the Securities and Exchange Commission (SEC) attempted, unsuccessfully, to challenge court decisions stating that Ripple’s XRP sales on exchanges, as well as distribution of XRP to employees and developers, were not classified as securities. He emphasized that if the SEC pursues these rulings further, they could potentially lose their case. Ripple’s Chief Legal Officer (CLO) concluded by stating in a post:
We eagerly anticipate the Federal Court of Appeals making a definitive decision that should effectively halt Gensler’s ill-conceived assault on our sector.
In a similar vein, Brad Garlinghouse, CEO of Ripple, also shared his thoughts on the matter, stating that if SEC Chairman Gary S. Gensler and the Securities and Exchange Commission (SEC) truly valued the court ruling, they would acknowledge their losses in the Ripple case and cease pursuing any further appeals.
According to Garlinghouse, he believes the SEC isn’t administering the law impartially, and under its present leader, the agency seems to be causing even more perplexity.
Previously this month, I mentioned that if Gensler and the SEC respected the rule of law, they would concede their defeat and proceed. However, it appears they are more focused on disregarding legal principles and providing uncertainty to American industry participants. Under Gensler’s leadership, the agency seems less concerned with upholding the law or offering clarity – instead, they seem intent on causing chaos, regardless of the impact on US innovation and technology.
Garlinghouse expressed hopefulness regarding the broad appeal, stating it could thwart the SEC’s strategy of ‘regulating through enforcement’. The company has been victorious during the initial rounds of the judicial conflict, and he remains optimistic that this momentum will persist throughout the ongoing legal skirmish.
XRP Market Reaction: Price and Trading Volume Spike amid Legal Developments
In the past day, the announcement of Ripple’s cross-appeal led to a significant rise in the price of XRP, jumping by approximately 2%. This upward trend goes against the previous market response following the SEC’s initial appeal earlier this month, which resulted in a 12% decrease in the value of XRP.
It seems that optimism about the market is primarily fueled by faith in Ripple’s legal approach, with many believing that a win in their cross-appeal might yield substantial benefits for XRP over the long term.
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2024-10-11 14:24