• The legal battle between Ripple and the Securities and Exchange Commission (SEC) has been ongoing since December 2020.
• The SEC accuses Ripple of raising $1.3 billion through illegal means and its native coin, XRP, being a security.
• Recently, John Deaton, a CryptoLaw founder and lawyer, reversed his earlier claim that the Ripple vs SEC case will not see a settlement due to Hinman documents.
The ongoing legal battle between Ripple, a San Francisco-based blockchain payments firm, and the Securities and Exchange Commission (SEC) in the United States has been making headlines since December 2020. Initially, the lawsuit was based on the allegations that Ripple raised $1.3 billion through illegal means and its native coin, XRP, is security.
The SEC has been relentless in its pursuit of Ripple, claiming that the firm violated the registration provisions of federal securities laws by selling XRP which it considered an unregistered security. Ripple, however, has refuted the claims and argued that XRP is a virtual currency and not a security.
Recently, John Deaton, a CryptoLaw founder and lawyer, reversed his earlier claim that the Ripple vs SEC case will not see a settlement due to Hinman documents. He had earlier claimed that the case would not be settled due to the SEC’s interpretation of the Howey Test. However, with the confirmation from Ripple in October 2022 that they now have the Hinman documents, Deaton changed his stance.
David Reischer, an attorney and legal expert, said that a win for Ripple in the case could benefit the entire cryptocurrency industry. He argued that if Ripple is successful in its legal battle against the SEC, it will set a precedent that digital assets are not securities and are, instead, assets that can be used as a medium of exchange. Reischer also stated that such a ruling would open the door for a more favorable regulatory environment for other digital assets.
The Ripple vs SEC case is one of the most important court battles in the history of cryptocurrency. The outcome of the case will have far-reaching consequences for the industry and could potentially shape the future of the crypto space. As the case continues to move forward, investors and traders should remain vigilant and keep track of the latest developments.