Ripple’s CLO Advocates for Resolution in Extended Legal Dispute 😇
The ongoing legal confrontation between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has spanned four years since its inception in December 2020, coinciding with Joe Biden’s presidency. Ripple’s Chief Legal Officer, Stuart Alderoty, has recently called for an end to this prolonged dispute, urging the next administration under Donald Trump to bring closure to the case.
Alderoty Calls for Closure of “Unlawful Litigation” ✊
Marking the fourth anniversary, the Ripple lawsuit initiated with claims that the company raised $1.3 billion by selling XRP as unregistered securities. Alderoty took to social media platform X, expressing the need to conclude what he terms a “lawless lawsuit.” In his remarks, he stated:
- “On this 4th anniversary of the SEC’s lawless lawsuit against Ripple, Brad, & Chris, we urge the incoming administration to cleanse the lingering stain of Hinman from the agency. There’s much more to do to repair the damage, but let’s start by restoring trust.”
In July 2023, a pivotal ruling by Judge Analisa Torres indicated that XRP did not infringe upon securities laws, while other judges involved in the case criticized the SEC for acting “arbitrarily and capriciously,” damaging its standing in the financial community.
Alderoty emphasized the necessity for the new administration to rectify the confusion stemming from former SEC official William “Bill” Hinman’s comments, which have led to ambiguity within the crypto sector. With the appointment of a crypto-savvy SEC chair, like Paul Atkins, he believes there exists a greater opportunity to re-establish trust and provide the clarity the industry critically needs.
Headway in Ripple’s Legal Disputes 🚀
Despite ongoing obstacles, Ripple has made notable progress in its legal challenges. The SEC anticipates submitting its opening brief by January 15, just before Gary Gensler’s term as SEC Chair concludes. This agency is appealing a prior ruling that favored Ripple regarding the status of XRP’s distribution and sales.
In parallel, a class action lawsuit against Ripple, its affiliate XRP II, and CEO Brad Garlinghouse is approaching resolution. A recent ruling from a district court went in Ripple’s favor, and both parties have settled on speeding up the final judgment.
Pivotal Effects on XRP Valuation 📈
The lawsuit has significantly affected XRP’s market value, plummeting from its all-time high of $3.38 down to $0.15. However, amidst these hurdles, the price of XRP experienced an impressive surge of nearly 500% in the previous month, currently resting at $2.18.
Analysts point out that if XRP maintains its position above the 26 EMA, it could draw in additional buyers, potentially elevating the price to $2.40. A surge in transaction volume might indicate a recovery phase, opening the door for further increases to $2.60 and possibly even $3.
Hot Take: Looking Ahead for Ripple and XRP 💬
As Ripple continues its battle in court, the landscape of cryptocurrency regulation remains uncertain yet promising. The ongoing developments in Ripple’s legal journey are pivotal not just for the company but for the broader crypto community. Stakeholders will watch closely to see how regulatory clarity evolves and how that clarity could shape the market dynamics surrounding XRP.
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