TL;DR
Speculation is rising that the SEC’s upcoming closed meeting under new Acting Chairman Mark Uyeda might address the Ripple lawsuit, but experts warn against expecting major developments.
Despite Gensler’s exit, the Ripple-SEC legal battle continues, with disputes over XRP’s classification and an ongoing appeal delaying resolution.
The lawsuit between Ripple and the US Securities and Exchange Commission (SEC) remains ongoing despite numerous legal developments and changes in the agency’s leadership. Recall that the regulator’s Chairman, Gary Gensler, officially stepped down on January 20 and was replaced by crypto proponent Mark Uyeda.
The Commission has scheduled its first closed meeting under the new Acting Chairman for January 23, causing the XRP Army to speculate that the case against Ripple might be on the agenda this time. Some of the most optimistic predictions include a dismissal of the lawsuit.
It is worth mentioning that the SEC conducts such meetings quite frequently, and there are no public records showing that it has touched upon the aforementioned legal tussle in any of them.
Marc Fagel – a former regional director of the SEC for the San Francisco office – claimed that those expecting “something monumental to happen” at the upcoming gathering “are about to be disappointed.”
“This is the same meeting they hold nearly every week. They will vote on recommendations calendared weeks ago,” he assumed.
The anti-crypto Gensler might be out of the SEC, but the official resolution of the case against Ripple remains challenging. After all, the entities have been confronting each other in court for over four years, throwing punches at each other on every possible occasion.
The core issue in the lawsuit is whether XRP (Ripple’s native token) should be classified as a security. The SEC argues it was sold as an unregistered investment, while the company insists it is a digital asset used for payments and not subject to securities laws.
In 2023, Judge Analisa Torres ruled that XRP sales on public exchanges to retail investors did not constitute securities transactions. A year later, she ordered Ripple to pay a fine of $125 million for violating certain rules.
The penalty represented just a fraction of the $2 billion the SEC initially asked for, and somewhat expected, the firm was ready to settle it.
However, the watchdog appealed the 2023 verdict and recently filed the necessary opening brief, thus prolonging the lawsuit indefinitely.
The post Ripple vs. SEC Settlement Rumors Gain Momentum: Here’s Why appeared first on CryptoPotato.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]
