Ripple vs SEC Lawsuit Heads to Second Circuit Court of Appeals: Ripple Executives Face Renewed Charges
The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has reached a new chapter. The case will now proceed in the U.S. Second Circuit Court of Appeals, following the SEC’s filing of Form C. In a surprising twist, the SEC has reinstated charges of securities law violations against Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen. According to a former SEC lawyer, the remaining claims against the two executives remain valid and are ripe for appeal.
SEC Appeal Targets Ripple Executives
XRP and the SEC’s legal dispute, which has stretched for years, is now set to continue for even longer, with legal experts suggesting the appeal could prolong the case by at least another year. The SEC has challenged the earlier summary judgment ruling that cleared Ripple on three critical fronts: XRP sales by Ripple, XRP distribution to employees and other entities, and XRP sales on exchanges made by Garlinghouse and Larsen.
Marc Fagel, a former SEC attorney, weighed in on the matter, noting that while the regulator dropped some charges related to aiding and abetting Ripple’s unregistered institutional sales, other claims against the executives have not been dismissed.
What Experts Are Saying About the XRP Lawsuit
Sherrie, a legal expert on the XRP lawsuit, pointed out that the case against Garlinghouse and Larsen had previously hinged on the stipulation that their individual sales were programmatic and, according to the court, not securities offerings. However, she warned that if the appellate court overturns Judge Torres’ ruling, this stipulation could be undone, potentially drawing the executives back into the lawsuit.
XRP Community Sees Positive Developments
Amid the legal wrangling, Ripple’s Chief Legal Officer, Stuart Alderoty, recently delivered good news to the XRP community. He confirmed that the SEC did not appeal the decision that XRP is not a security, cementing this ruling as “the law of the land.” This adds clarity for XRP as a digital asset, but Ripple is expected to file a cross-appeal against the SEC by this Friday.
XRP Price Outlook: Could the Lawsuit Impact XRP’s Value?
As of now, XRP is trading at $0.525, marking a 5% drop in the past week. The 24-hour trading range has fluctuated between $0.512 and $0.531, while trading volume has seen a 7% uptick in the last 24 hours. According to Coinglass data, open interest (OI) in XRP futures fell over 2%, with total OI standing at $1.4 billion, equating to approximately $743 million.
Despite this volatility, market sentiment remains bullish, with some experts forecasting a significant rally. There are predictions that XRP’s price could climb as high as $16, potentially overtaking Ethereum in the process.
Conclusion
As the Ripple vs SEC lawsuit enters a new phase, the legal proceedings could have far-reaching consequences for Ripple executives, XRP holders, and the broader crypto market. With both sides ready for another round of legal battles, the impact on XRP’s price and the cryptocurrency market remains uncertain. However, positive developments, like the SEC’s decision not to appeal the “XRP is not a security” ruling, are giving hope to Ripple’s supporters.
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