According to U.Today, the prolonged legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. has reached a final ruling after nearly four years. The central question now is whether the SEC will appeal parts of the July 2023 decision. Ripple's Chief Technology Officer (CTO), David Schwartz, expressed uncertainty about the likelihood of an appeal, stating that there are valid arguments both for and against it.
The Ripple v. SEC case revolves around the classification of XRP, Ripple's digital asset, as a security. The SEC filed a lawsuit against Ripple in 2020, accusing the firm of selling XRP without registering it as a security. In July 2023, Judge Torres ruled that XRP traded on exchanges is not a security, a decision that the SEC might consider appealing. Ripple was ordered to pay $125 million in civil penalties, significantly less than the $2 billion initially imposed. The Judge acknowledged Ripple's repeated violations of securities laws but noted that the SEC failed to prove that Ripple caused losses for its investors.
Many members of the XRP community believe that the chances of the SEC filing an appeal are low, given the changing regulatory environment. If their predictions are correct, XRP would retain its legal clarity, potentially setting a precedent for other cryptocurrencies. Schwartz mentioned that both the SEC and Ripple would make crucial decisions in the next 60 days.
Following the final judgment, XRP has shown a positive market reaction. The cryptocurrency rose to $0.5 earlier this week and has since surged by 20% to $0.6171. Trading volume also saw a significant increase of 250%, reaching $5.3 billion, indicating renewed investor interest.
