Ripple Reports Setback in Lawsuit with US SEC Over XRP

On April 29th, Ripple reported that the US SEC had recently encountered setbacks in its lawsuit against the payment company, after accusing XRP of being an unregistered security. Ripple stated in its XRP market report for the first quarter of 2023 that in an opinion issued by Chief Justice of Litigation, Analisa Torres, last month, testimony from some SEC experts was removed from court records.

Ripple: The US SEC has been frustrated in the lawsuit against XRP and hopes to make a summary judgment within the year

Ripple made headlines on April 29th, 2021, as it reported that the US Securities and Exchange Commission (SEC) faced major setbacks in its legal battle with the payment company over accusations that XRP was an unregistered security. According to Ripple’s XRP market report for the first quarter of 2023, testimony from some SEC experts was recently removed from court records on the basis of expert evidence rules.

The SEC’s Lawsuit Against Ripple

The SEC filed a lawsuit against Ripple in December 2020, alleging that the company, along with its CEO Brad Garlinghouse and Executive Chairman Chris Larsen, illegally sold XRP, which is considered a security, without proper registration or disclosure, earning over $1.3 billion in the process. Ripple has vehemently denied the allegations, stating that XRP is a currency and not a security, subject to different regulations.
The lawsuit has been closely watched in the cryptocurrency industry, as the outcome could set a precedent for how cryptocurrencies are regulated in the future. Ripple and its supporters have also accused the SEC of causing market uncertainty and harming investors by filing the lawsuit.

Ripple’s Response to the Setback

In its market report, Ripple stated that Chief Justice of Litigation Analisa Torres had removed testimony from two SEC experts, citing a violation of expert evidence rules. The experts had reportedly provided testimonies which Ripple’s legal team argued were biased, inaccurate and unreliable.
Chief Justice Torres agreed with Ripple’s objections, and removed the testimonies from court records, causing a significant setback for the SEC’s case against Ripple. The decision has been seen as a major victory for Ripple, as it weakens the SEC’s case against the company and could lead to a possible settlement.

The Impact on XRP and the Crypto Market

The legal battle with the SEC has caused XRP to experience a significant decline in its price since December 2020. The cryptocurrency was trading at $0.25 when the lawsuit was filed, but its price plummeted to $0.18 after major cryptocurrency exchanges delisted it due to the legal uncertainty.
However, following Ripple’s announcement on the setback, XRP’s price surged by over 20% to reach $1.75 billion in market capitalization. The price increase was seen as a sign of investors’ confidence in Ripple’s case and its future prospects.

Conclusion

The recent setback for the SEC in its case against Ripple has strengthened the payment company’s position and could pave the way for a possible settlement. The decision to remove testimony from SEC experts is a significant victory for Ripple, and has led to a surge in XRP’s price. The outcome of the lawsuit is crucial for the cryptocurrency industry, as it could set a precedent for how cryptocurrencies are regulated in the future.

FAQs

1. What is the SEC’s lawsuit against Ripple about?
– The SEC filed a lawsuit against Ripple in December 2020, alleging that the company illegally sold XRP, which is considered a security, without proper registration or disclosure.
2. Why did the SEC’s case against Ripple experience a setback?
– Testimony from two SEC experts was removed from court records on the basis of expert evidence rules, citing a violation of bias, inaccuracy, and unreliability.
3. How has XRP’s price been impacted by the lawsuit?
– The cryptocurrency has experienced a decline in its price since December 2020, but following Ripple’s announcement on the setback, XRP’s price surged by over 20% to reach $1.75 billion in market capitalization.