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In an ongoing legal tussle, the U.S. Securities and Exchange Commission (SEC) stands firm in its classification of all XRP sales as securities, defying expectations following the recent dismissal of charges against top Ripple executives.
Persistent SEC Stance
The SEC, led by Gary Gensler, maintains its unwavering position, refusing to alter its characterization of XRP sales and offers as securities, as reported by Eleanor Terrett.
The clash dates back to December 2020 when the SEC accused Ripple and its executives of conducting unregistered securities offerings, particularly regarding XRP sales. These sales encompassed institutional transactions, digital exchange deals, and various other distributions, all drawing regulatory scrutiny.
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Courtroom Moments
A turning point arrived during a July 13 summary judgment hearing when Judge Analisa Torres determined that only Ripple’s direct sales to institutional clients breached securities laws. This ruling excluded Ripple’s automated sales and other distributions from being classified as investment contracts.
Frustrated by this partial defeat, the SEC sought an interlocutory appeal, which the court deferred, advising the commission to await a comprehensive resolution. With all charges against executives now dropped, the case progresses to the remedies phase, setting the stage for a conclusive verdict.
The SEC’s relentless legal pressure indicates its commitment to maintaining strict regulatory standards within the cryptocurrency realm. This serves as a stark reminder to industry players about compliance’s significance and the potential consequences of overlooking it.
Ripple Vs. SEC: Pro-XRP Lawyer Weighs In On Possibility Of An Immediate Appeal
The SEC’s recent voluntary dismissal of its case against Ripple executives Brad Garlinghouse and Christian Larsen has sparked reactions across the crypto community. While this might imply the cancellation of the trial scheduled for April 2024, the SEC continues to pursue other aspects of the case against Ripple.
Amid these developments, lawyer and XRP supporter John Deaton weighs in on the possibility of an immediate SEC appeal. Responding to crypto trader Ran Neuner’s concerns about the case’s dismissal, Deaton notes that an appeal can’t be brought against Ripple immediately.
The Waiting Game
Deaton explains that the penalty phase of the case must precede any appeal, citing a case study involving LBRY. In this case, the SEC’s negotiations over a much smaller sum took eight months, while the Ripple case involves a substantial $770 million, suggesting that an SEC appeal is not expected before 2024.
Deaton refutes the notion that the SEC dropped charges to expedite the appeal process, arguing that it was due to the case’s low chances of success.
Ongoing Pursuit
According to Fox Business journalist Eleanor Terret, the SEC will persist in pursuing other aspects of the case, specifically the classification of all XRP offers and sales as an investment scheme. Simultaneously, the dismissal of charges against Garlinghouse and Larsen has ignited discussions about a potential settlement between the SEC and Ripple.
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Disclaimer:
Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
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