Ripple VS the Sec: This good news for XRP suggests the SEC is likely to lose its lawsuits!

Last year, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, the creator of the crypto– Currency XRP (CRYPTO: XRP). The SEC said the company and two senior executives conducted an illegal stock offering, implying that XRP is a stock and not a cryptocurrency.

The government agency also said the company raised more than $ 1.3 billion through an unregistered stock offering.

Ripple Labs responded to the SEC allegations by stating that XRP is, in fact, not a security. It is a useful tool for transferring value across borders through Ripple products, but it is not a security that should have been registered under SEC regulations.

The case continues to drag on, but it could be seen in favor of the cryptocurrency developer. The court’s decision on this could have a lasting impact on cryptocurrency regulation. However, the case itself has slowed the cryptocurrency’s bid to achieve greatness in the nascent industry.

A pivotal date for the case is coming

The process has been going on for over a year, but enthusiasm grows. The attorney representing Ripple Labs said the most important decision regarding this case will come soon. Read also: Bitcoin’s gains are likely to be limited in the bearish trend with the first resistance at 36300/400.. However, this seems unlikely due to court approval of the SEC’s Deliberative Process Privilege (DPP), a legal defense that provides government institutions with immunity from disclosing internal correspondence.

The SEC and the defendants will file a joint motion for a trial order on April 22, 2022. Judge Sarah Netburn has ordered the two sides to agree on a schedule to file summary judgment motions in this case.

There is a realistic possibility that the two parties will reach a settlement agreement at that time, as that would be the quickest way to conclude the proceedings. However, a ruling in favor of Ripple Labs could send waves of relief across the cryptocurrency industry.

A strong defense

Ripple Labs made a valid point in the case, arguing that the agency did not fairly inform the developer about its potentially illegal conduct. See the article: Coinbase Adds Rewards For Cardano Stacking (ADA). The company insists that the SEC should have provided clarification as to whether it considers XRP a security, as the government agency has had plenty of time to do so.

The SEC filed a motion to dismiss the affirmative defense of the equity notice for Ripple Labs. The court rejected this motion, announcing great news for the cryptocurrency developer in this case. Ripple Labs’ legal team criticized the SEC for causing further delays in the proceedings.

The lawyer also said that the rules proposed by the SEC during these disputes mean that more conquered parties in the cryptocurrency industry can expect legal action in the future.

The outcome of this case will set a precedent for further regulation of the cryptocurrency industry in the future.

Consequence for the XRP token

The case appears to be turning in Ripple Labs’ favor, but the XRP token has been removed from cryptocurrency exchanges in the United States. Most of the XRP holders are located outside the United States, but the move has largely stalled the growth of the cryptocurrency. This might interest you: Exotic Markets launches the first dual-currency banknotes and accumulators on DeFi. A win for Ripple Labs could see major cryptocurrency exchanges relist XRP on their platforms and give its prices a huge boost.

Analysts are expecting a price of $ 1.30 for XRP in 2022, despite setbacks. XRP is trading at $ 0.82 at the time of writing. Depending on the outcome of the case, analysts’ price prediction for the cryptocurrency may be achievable.

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