- Ripple CEO Brad Garlinghouse reveals plans to take the XRP lawsuit to the Supreme Court, following a settlement proposal and recent legal victories.
- The SEC’s lawsuit against Ripple, claiming illegal trading of XRP tokens as securities, was previously ruled in Ripple’s favor by a New York judge.
Ripple’s Supreme Court Strategy
Ripple CEO Brad Garlinghouse has announced his intention to take the ongoing legal battle against the United States Securities and Exchange Commission (SEC) to the Supreme Court. This decision follows a favorable ruling and a settlement proposal, marking a significant turn in the longstanding dispute over the classification of XRP as a security.
Legal Landscape Shifts for Ripple
Garlinghouse, speaking at DC Fintech Week 2023, revealed that his firm had received a proposal to settle the case out of court. However, this proposal was later withdrawn, which Garlinghouse believes reflects Ripple‘s advantageous position in the legal contest regarding XRP’s security status. The CEO’s decision to push the case to the Supreme Court underscores Ripple’s confidence in its legal standing.
Ripple’s Market Performance
Amidst the legal developments, Ripple‘s XRP token has seen substantial growth. The cryptocurrency’s price has increased by 35% since the beginning of the year and by 80% since the onset of the lawsuit. This positive market response appears to mirror the legal victories Ripple has experienced.
Background of the SEC Lawsuit
The SEC initiated legal action against Ripple in December 2020, accusing the company of illegal securities trading concerning its XRP tokens. In a significant legal development in July 2023, Judge Analisa Torres of the Southern District of New York ruled in favor of Ripple, stating that XRP cannot be considered a security. However, she noted that institutional sales of the tokens might still qualify as sales of unregistered securities.
Implications of the Supreme Court Move
Ripple’s decision to take the case to the Supreme Court indicates a commitment to establishing a definitive legal precedent regarding XRP‘s status. This move could have far-reaching implications for the cryptocurrency industry, potentially setting a standard for how digital assets are classified and regulated.
As the legal drama unfolds, the crypto community closely watches the implications of Ripple’s Supreme Court strategy. This case is not only pivotal for Ripple and XRP but also for the broader digital asset sector, as it may influence future regulatory approaches and the legal recognition of cryptocurrencies as securities or otherwise.
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