Key Developments in the Ongoing Ripple (XRP) vs. SEC Lawsuit as of September 29th

The Ongoing Legal Battle

The legal battle between Ripple and the SEC began in December 2020 when the SEC sued Ripple for allegedly violating securities laws through the sale of XRP to retail investors. Despite winning a partial victory in July, Ripple’s fight against the SEC continues.

The court ruled that the sale of XRP did not qualify as an offer of investment contracts, which boosted XRP’s price by over 70%. However, the SEC appealed the decision in September, causing uncertainty and negatively impacting XRP’s value.

Ripple has hired experienced lawyers, including Rahul Mukhi and Lauren Belive, to represent the company and its CEO, Brad Garlinghouse. Belive, who previously worked at the White House under President Barack Obama, was appointed as the Head of US Public Policy and Government at Ripple.

Gary Gensler’s Response

In a recent congressional testimony, SEC Chairman Gary Gensler reiterated his criticism of the digital asset sector, referring to individuals and companies in the industry as “hucksters” who misuse customer funds. When questioned about the Commission’s legal battle with Ripple, Gensler avoided providing specific details and simply mentioned that the dispute is ongoing.

This is not the first time Gensler has remained silent when faced with uncomfortable questions. In April, he avoided directly answering whether the SEC considers Ethereum (ETH) a security or a commodity during a House Financial Services Committee hearing.

Hot Take: Ripple vs. SEC – A Prolonged Struggle

The legal battle between Ripple and the SEC continues to unfold with no clear resolution in sight. While Ripple achieved a partial victory in July, it faced an appeal from the SEC, resulting in increased uncertainty for XRP investors.

SEC Chairman Gary Gensler’s recent silence regarding the ongoing dispute raises questions about the future of Ripple and its regulatory status. As the case progresses, it remains to be seen how this legal battle will impact the broader crypto industry and whether it will lead to clearer regulations for digital assets.