Oct 15, 2024
6thTrade
Ripple vs. SEC: The Legal Battle Continues Amid Swell Event Speculation
Ripple's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) remains front and center, with recent court decisions in August and more appeals on the horizon. Ripple’s annual Swell event in Miami has sparked speculation about potential announcements that could influence the XRP price.
Ripple and the SEC: A Closer Look at Recent Rulings
Ripple has been embroiled in a legal struggle with the SEC for several years, facing allegations that its sales of XRP constituted illegal securities transactions. In a crucial decision in August, Judge Analisa Torres ruled that sales of XRP on secondary markets to retail investors did not qualify as securities transactions. However, Ripple wasn’t entirely off the hook—Judge Torres ordered the company to pay a $125 million fine for regulatory violations. $XRP
Despite this outcome, Ripple seemed content with the penalty, given that it was just a fraction of the hefty $2 billion initially sought by the SEC. However, the regulator appealed a 2023 ruling by Judge Torres that had previously declared secondary XRP sales were not securities transactions. Ripple’s Chief Legal Officer, Stuart Alderoty, stated last week that Ripple filed a cross-appeal to address lingering issues, including the argument that an investment contract requires specific rights and obligations in a formal agreement.
Alderoty also pointed out that the SEC, in other cases, has conceded that a token itself is not inherently a security—a position they have reaffirmed in Ripple’s case. The SEC has until October 16 to clarify what it aims to appeal, which notably coincides with the final day of Ripple’s Swell event.
Ripple Swell Event: Anticipated Announcements and Market Impact
This year’s Swell event will take place in Miami, Florida, and CEO Brad Garlinghouse has already stirred excitement among the XRP community, often referred to as the “XRP Army.” Ripple has hinted at potential big announcements during this event, with speculation ranging from the launch of a US-pegged stablecoin, RLUSD, to new strategies in its ongoing legal battle with the SEC.
Such announcements could have a significant impact on XRP’s price, which has lagged behind other major cryptocurrencies recently. Currently trading around $0.54 according to CoinGecko, XRP has seen a 13% drop over the past two weeks, struggling to maintain momentum amidst broader market challenges.
As Ripple’s legal dispute with the SEC continues, all eyes are on the upcoming Swell event in Miami for potential news that could reshape the landscape for XRP. Ripple's cross-appeal and the SEC's upcoming appeal deadline add layers of intrigue, with the potential to impact both Ripple's future and XRP’s position in the market.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. All investments involve risk, and readers should consult with a financial advisor before making any trading decisions.
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