Is $XRP going down?
The #Ripple versus #SEC legal battle is a significant legal dispute that emerged in December 2020.
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs Inc., the company behind the cryptocurrency #XRP , alleging that XRP was an unregistered security, and Ripple had conducted an illegal securities offering.
The SEC's argument centered on the contention that XRP should be classified as a security under U.S. federal securities laws, which would require Ripple to comply with the necessary registration and disclosure requirements.
Ripple, on the other hand, maintained that XRP is a digital currency like #Bitcoin and #Ethereum and should not be subject to the same regulatory oversight as securities.
The outcome of the legal battle has significant implications for the cryptocurrency industry, as it could set a precedent for how other digital assets are classified and regulated by the SEC.
Over a long period of time, the case has been closely watched by the crypto community and investors, and the result could potentially influence the regulatory landscape for cryptocurrencies in the United States.
While the case has taken so much time, several events have been happened but with no final decision made yet.
Declared not securities
In the second week of July 2023, a US judge, Analisa Torres, ruled that Ripple's XRP is not a security, concluding a years-long legal dispute.
The judgment sparked a lot of controversies and excitement in the industry. Crypto lovers were cool with it. Several tokens rose in value after the announcement such as Bitcoin, Ethereum and XRP itself.
On the other camp, the SEC felt the judgment was not right courtesy of Gensler.
He disagreed with the outcome saying, "We’re pleased from that decision recognizing the importance of protecting investors on the institutional investors."
"While disappointed on what they said about retail investors, we’re still looking at it and assessing that opinion," he added.
Losing its lawyers
In May 2023, prior to the court ruling, Ripple lost one of its counsel, Kylie Chiseul Kim.
She submitted a motion to withdraw from the case due to her departure from the law firm representing Ripple.
Kylie stated that she was distancing herself from the law firm, therefore, she opted to leave the team.
Why did this happen?
Did she notice anything about the case going South?
Well, barely a month after the exit of Kylie, Clayton J. Masterman, another significant figure representing Ripple, filed a motion to remove himself from the case.
Thinking that that's all, Anna R. Gressel of Debevoise & Plimpton LLP, filed another motion Tobe exempted from the Ripple team in the second week of July.
Within three months Ripple lost three attorneys from its legal team.
Does it feel normal?
Hiring new lawyer
To "ease off the tension and bring assurance to the crypto community", a latest hire by Ripple was done to fill up the gap left by the two attorneys it has lost.
Douglas S. Zolkind joined the Ripple team on July 31, 2023.
He is a partner at Debevoise & Plimpton LLP, specializing in corporate criminal defense.
His experience as an assistant United States attorney in the SDNY, particularly in the Criminal Division's Public Corruption Unit, makes him a suitable choice for Ripple.
If this journey continues this way, do you see the SEC winning against Ripple?
If you ask me, I'd say yes 65%.
But let's see what happens before the US elections in 2024.