SEC persists with "digital asset securities" claims, appealing Ripple court ruling.
XRP price surges past $1, with analysts eyeing a potential rally to $2.
Ripple lawsuit could settle for $125M, with calls for clarity and Gensler's resignation.
The U.S. Securities and Exchange Commission (SEC) has signaled its intent to persist with claims involving “digital asset securities,” particularly targeting XRP, despite a prior court ruling rejecting such a categorization.
This development has raised new questions about the trajectory of the high-profile Ripple lawsuit, which has dragged on for years, and its impact on the cryptocurrency market.
Meanwhile, XRP has witnessed a surge in its value, crossing the $1 threshold, and analysts are projecting a potential rally to $2, fueled by speculation of an end to the legal battle and shifts in regulatory leadership.
During a recent speech at the Practising Law Institute’s (PLI) 56th Annual Institute, SEC Chair Gary Gensler reiterated that Bitcoin is not a security but remained silent on XRP, ether, and stablecoins.
Gensler’s remarks highlighted the SEC’s focus on targeting the broader digital asset market, stating, “Aside from Bitcoin, ether, and stablecoins, the rest of this market approximates $600 billion.” Legal experts have criticized the SEC’s persistence in using terms like “digital asset securities,” which were recently ruled inappropriate in connection with XRP.
https://twitter.com/MetaLawMan/status/1859326108287512930
Despite a court judgment that XRP’s sales on exchanges do not constitute securities transactions, the SEC has appealed portions of the ruling related to XRP sales by Ripple, its executives, and its distribution to employees.
Crypto legal expert James Murphy noted that the SEC’s stance disregards the court’s findings, signaling a potential escalation in the dispute.
The crypto community has increasingly called for the lawsuit's dismissal and SEC Chair Gary Gensler’s resignation. Ripple CEO Brad Garlinghouse has expressed optimism about resolving the case, anticipating a potential conclusion following upcoming political shifts.
Ripple CTO David Schwartz clarified that Ripple’s obligations are to its shareholders, not XRP holders, emphasizing that XRP’s price is independent of Ripple’s efforts.
Reports suggest that a $125 million settlement is on the horizon. Observers note that such a resolution would bring much-needed clarity to Ripple’s operations and the broader digital asset space.
