WASHINGTON - Ripple CEO Brad Garlinghouse has conveyed the company's preparedness to escalate its ongoing legal struggle with the Securities and Exchange Commission (SEC) to the Supreme Court if necessary. This statement comes amid a costly defense effort that has reportedly reached $150 million due to allegations of securities registration violations.
The legal confrontation dates back to December 2020 when the SEC filed a lawsuit against Ripple and its executives, alleging that they engaged in the sale of XRP as unregistered securities through programmatic sales. The case has seen several developments, including a notable moment in July 2023, when Judge Analisa Torres ruled in favor of Ripple. She stated that their past sales did not constitute investment contracts, which temporarily boosted XRP's value and marked one of Ripple's partial victories against the SEC.
Despite this win and the subsequent dismissal of the SEC's appeal and watchdog charges against Ripple's executives, the case is far from over. A major trial is on the horizon, scheduled for April, with procedures for remedies-related discovery and briefing already set. As the legal proceedings continue to unfold, market analysts such as EGRAG CRYPTO and Dark Defender have speculated on a potential rally for XRP. They predict that its value may surpass a consolidation zone resistance level.
Garlinghouse shared his expectations for the Supreme Court's perspective during his appearance at the DC Fintech Week event. Meanwhile, there is a broader debate within the crypto community regarding the applicability of traditional securities regulations to digital assets like XRP. Many argue that these assets do not align with securities laws as defined by a 1946 Supreme Court case, suggesting that existing frameworks are ill-suited for modern digital currencies.
The outcome of Ripple's legal battle could have significant implications for the cryptocurrency industry, potentially setting a precedent for how digital assets are classified and regulated in the United States.
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