The legal skirmish between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has spanned four years, originating in December 2020. With the transition of the U.S. presidential administration, Ripple’s Chief Legal Officer, Stuart Alderoty, is advocating for a resolution to this prolonged conflict.
Alderoty’s Plea to End the “Lawless Lawsuit”
The lawsuit, initially filed over allegations of Ripple raising $1.3 billion through the sale of XRP as unregistered securities, has reached its fourth anniversary. In response, Alderoty has taken to social media, describing the case as a “lawless lawsuit” and urging for its conclusion.
On the lawsuit’s anniversary, Alderoty implored the new administration to address and rectify the SEC’s past actions, which he believes have tarnished the agency’s integrity. He emphasized the need to restore trust and eliminate the confusion instigated by former SEC official William “Bill” Hinman’s comments on cryptocurrency regulations.
Alderoty is optimistic that with a crypto-friendly SEC leadership, such as Paul Atkins, there could be an opportunity to rebuild industry trust and provide much-needed regulatory clarity.
Progress in Ripple’s Legal Journey
Despite the ongoing legal hurdles, Ripple has achieved notable progress in its battles. The SEC is expected to submit its opening brief by January 15, coinciding with Gary Gensler’s departure as SEC Chair. The agency is appealing a prior decision that favored Ripple, particularly concerning the distribution and sales of XRP.
Additionally, a class action lawsuit involving Ripple, its subsidiary XRP II, and CEO Brad Garlinghouse is approaching resolution. A district court has recently ruled in favor of Ripple, and both parties are working towards expediting the final judgment.
The Ripple Effect on XRP’s Market Value
The protracted legal case has significantly impacted XRP’s market value, causing a steep decline from its all-time high of $3.38 to a low of $0.15. Despite these challenges, XRP has experienced a notable recovery, surging nearly 500% in the past month to reach $2.18.
Market analysts suggest that if XRP maintains its position above the 26-day Exponential Moving Average (EMA), it could attract more investors, potentially driving the price up to $2.40. An increase in transaction volume could further signal a recovery, with projections estimating a rise to $2.60 and potentially $3.
As the legal battle continues, the outcome could have profound implications for XRP’s future trajectory, underscoring the importance of regulatory clarity in the crypto landscape.
