Ripple and the US Securities and Exchange Commission have been in a two-year legal tussle over allegations of breaching securities laws. Yet, many believe Ripple winning this case can have a “ripple effect” in the cryptocurrency market.
- In December 2020, the Securities and Exchange Commission (SEC) filed a lawsuit accusing Ripple of selling $1.3 billion in unregistered securities since 2013. This allegation led to Ripple’s decline in price and trading activities in the market ($XRP).
- The CEO of Ripple, Brad Garlinghouse, described this allegation against Ripple as “an assault on crypto at large.” He reasoned that since Ripple is a proxy for other altcoins, such an allegation ruins the reputation of firms working with digital assets.
- Ripple has recently been gaining tactical wins over SEC in recent court cases. Many experts believe that subsequent proceedings may turn the tides in favor of Ripple. Recently, the Chamber of Digital Commerce (CDC), is granted the status of acting as an amicus curiae in this case.
- Reacting to the amicus curiae status, SEC filed a motion to the court to allow more amicus briefs. However, Ripple strongly objected that it was yet another attempt to delay the case’s resolution. Consequently, the presiding judge, Analisa Torres, rejected the motion.
- Experts believe that with the CDC acting as an amicus curiae, subsequent court rulings will favor Ripple Firm. This legal victory could potentially turn the crypto market condition bullish.
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