Ripple CLO Clears Growing Confusion Surrounding Ripple vs. SEC Lawsuit

Conflicting reports on Ripple vs. SEC case fuel confusion.
Legal battle’s key moments and upcoming deadlines scrutinized.
SEC’s relentless pursuit faces obstacles in Ripple lawsuit.

There’s uncertainty swirling around the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) following conflicting reports about a crucial pretrial conference. Crypto influencer Crypto Eri sparked debate by sharing details about a final pretrial meeting slated for April 16, 2024.

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However, Stuart Alderoty, Chief Legal Officer at Ripple, swiftly rebutted the claim, asserting its inaccuracy. In December 2020, the SEC launched a lawsuit against Ripple, roping in executives Brad Garlinghouse and Chris Larsen. The accusation? Selling XRP as an unregistered security, with charges of aiding and abetting these transactions leveled against the executives.

A pivotal moment came in July 2023 when the court ruled that non-institutional sales of XRP didn’t constitute securities offerings. Despite the SEC’s attempt to appeal, the interlocutory appeal was quashed. Late 2023 saw the dismissal of charges against Ripple’s top brass, rendering the planned pretrial conference moot.

Though the conference fizzled, the legal tussle persists. Upcoming milestones loom, notably Ripple’s April 22, 2024 response deadline to the SEC’s penalty request, which seeks nearly $2 billion for alleged securities law violations.

Mark your calendars for May 6, 2024, too. By then, the SEC must counter Ripple’s penalty response, hinting at a potential resolution on penalties. However, experts caution against assuming this spells the lawsuit’s end, particularly given the SEC’s aggressive stance under Chair Gary Gensler.

As whispers of a settlement circulate, the SEC’s pursuit of cryptocurrency firms remains unyielding, prompting speculation of further appeals. However, the regulator’s pursuit of the $2 billion penalty faces hurdles, with the court’s stance in the Govil lawsuit challenging its ability to demand such hefty fines without proof of investor losses.

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Lauren Cole

A focused and vigilant storyteller for all things blockchain and cryptocurrency. Besides consuming every piece of literature about the metaverse, she can often be found at industry convections looking for the latest scoop.