In the event the SEC prevails, Chair Gary Gensler will be able to put a trillion-dollar industry under his thumb. Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi. Today, news is showing that both the SEC and Ripple have been denied important motions. The first half of this news — that the SEC had been denied a motion to strike Ripple’s fair notice defense — surfaced on Saturday. For context, Ripple’s defense posits that the SEC did not provide fair notice that its coin distribution was illegal.
He also revealed that Ripple would consider a settlement if the SEC agrees that XRP is not a security. There was speculation in December 2022 on Twitter that the case, which hangs on whether Ripple’s XRP token https://newsblock.today/ is an ublicensed security, could have been settled that month after an ask-me-anything with Cardano’s Charles Hoskinson. He said he had heard rumours XRP v SEC could be finalised around 15 December.
But the sale of XRP coins is purported by Ripple to have not been a security offering or initial coin offering at all. Ripple has received support from several companies in its battle against the SEC, including the crypto exchange giant Coinbase. Other firms like TapJets and I-Remit also filed their amicus briefs to support the crypto solutions provider. Specifically, a non-party labeled as ‘Investment Banker Declarant’ who previously filed a declaration supporting the SEC’s probe into Ripple has now filed a motion seeking to redact his declaration.
Ripple, a network aiming to bring fast and low-cost payments to financial institutions, has XRP as the native token that was initially launched in 2013 to raise funds for the company. Ripple Labs Inc, and it describes itself as a ‘payment solutions company.’ Today, it is primarily focused on facilitating cross-border cryptocurrency payments and cryptocurrency liquidity. Ripple Labs’ chairman, Chris Larsen, claimed that the sales were legal.
What Is The End Date For Xrp Lawsuit?
It rose to a high of $0.55 on 23 September 2022, a 71% increase from the $0.32 low seen a week earlier. Since then, more industry players have requested permission to send in amicus briefs in support of Ripple. A total of 16 different organisations have requested to submit briefs and the judge gave a deadline of 18 November to file these documents. On 11 October, Judge Torres approved TapJets’ and I-Remit’s request to submit these briefs, giving them three days to file their documents, which were made public on 14 October and 12 October respectively. However, the SEC argued in its summary judgment motion that XRP met the “investment of money” criterion of the Howey Test.
- The SEC versus Ripple litigation is precedent-setting and its outcome could have repercussions on the entire digital asset space.
- According to the panel, the value of XRP will reach $3.61 by the end of 2025 and $4.98 by 2030.
- Our goal is to help every Canadian achieve financial freedom and make all levels of investors smarter, happier, and richer.
- The SEC made sweeping arguments about the XRP token itself being a security for seven years, and included Ripple Chairman Chris Larsen and CEO Brad Garlinghouse as defendants.
- Nevertheless, a win by Ripple could prompt American exchanges like Coinbase to enlist XRP again.
It moved its headquarters to a stone building near the Bank of America pyramid in San Francisco’s financial district, and opened offices in global money centers, including London and Singapore. It sponsored swanky conferences and hired entertainers like Snoop Dogg. One evening in Toronto, hundreds of Ripple guests nibbled satays and sipped Scotch while aging rock legend Steve Miller grinded out “The Joker” and other hits. To carry out the plan, Ripple persuaded a network of money transmitters to deal in XRP, meaning the banks themselves would only need to hold the currency momentarily. All of this activity would, in theory, increase liquidity and drive up the price of XRP.
SEC vs. Ripple: how it all began
Additionally, the judge in the case has been generally favorable to Ripple throughout the proceedings. In the meantime, there is speculation regarding the possible case outcome, although a section of the industry has cited that the ruling might favor Ripple. However, according to United https://newsblock.today/ripple-vs-sec-xrp-court-case/ States attorney Jeremy Hogan, both Ripple and SEC have an equal chance of winning. Previously, the court had also granted a motion for crypto investment firm Paradigm to join the case. It’s easy to understand why, with only one half of this news, XRP fans were ready to celebrate.
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Currently, it is estimated that $10 trillion are processed each day across the world. If that money flows through XRP, then Jungle Inc believes the asset’s value would surge to nearly $700 per coin. Investors began celebrating an end to the trial over the past weekend, thanks in large part to news that a judge was denying a crucial SEC motion. However, a recent XRP lawsuit update suggests Ripple isn’t quite as far ahead as investors had thought.