The Ripple versus SEC legal dispute appears to be nearing a potential resolution, with indications suggesting the SEC may refrain from appealing Judge Analisa Torres’ recent partial judgment favoring Ripple Labs.
This strategic decision by the SEC aims to prevent further escalation of the case in higher courts, marking a significant shift in their legal strategy.
Recent market developments suggest that the longstanding Ripple versus SEC lawsuit could soon come to a close. According to a recent report, the U.S. Securities and Exchange Commission (SEC) is considering not appealing Judge Analisa Torres’ recent summary judgment, which partially favors Ripple Labs. This move indicates a major strategic pivot by the SEC, likely aimed at avoiding additional courtroom battles in higher judicial settings.
This development has emerged as the crypto community awaits the court’s upcoming ruling on the remedies phase, expected by the end of Summer 2024. Following this phase, the SEC may initiate an appeal process, as reported by Crypto News Flash.
During a recent digital assets conference, Kristina Littman, former head of the SEC’s Enforcement’s Cyber Unit, provided insights into the SEC’s potential future actions. She speculated that, given other judicial opinions in similar cases, the SEC might accept the District Court’s decision. Littman also highlighted potential judicial conflicts that could complicate the appeal process, referencing disagreements among judges in related cases.
The uncertainty surrounding potential appeals was further fueled by Littman’s remarks at the conference, prompting speculation within the crypto community about the SEC’s next moves regarding the Ripple case.
In another legal development, the U.S. District Court for the Northern District of California recently delivered a procedural victory to Ripple. The court dismissed several key claims in a class action lawsuit against Ripple, including federal and state law securities claims related to unregistered securities. Stuart Alderoty, Ripple’s Chief Legal Officer, expressed satisfaction with the court’s decision, although the crucial question of whether XRP qualifies as a security remains unresolved pending jury deliberation using the Howey Test criteria.
Separately, in a civil securities lawsuit against Ripple CEO Brad Garlinghouse, a California judge ruled that Garlinghouse will stand trial over allegations of misleading statements made in 2017 regarding XRP sales, according to Crypto News Flash.
Amid broader market volatility, Ripple’s native cryptocurrency XRP continues to face downward pressure. At the time of writing, XRP is trading at $0.48, down by 1.12%, with a market cap of $27.3 billion.
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