Ripple vs. SEC: Settlement Speculations Intensify

Ripple Lawsuit Progresses to Appeals Court: SEC Updates Website

The legal battle between Ripple and the US Securities and Exchange Commission (SEC) continues, despite leadership changes and various legal developments. Gary Gensler, the SEC Chairman known for his anti-crypto stance, officially stepped down on January 20. Crypto advocate Mark Uyeda has since stepped in as Acting Chairman.

New SEC Meeting Fuels Ripple Case Speculations

The SEC has scheduled its first closed-door meeting under Uyeda for January 23. This announcement has sparked excitement among Ripple supporters, often referred to as the “XRP Army.” They speculate that the ongoing lawsuit might finally be on the agenda. Some optimists even predict a complete dismissal of the case.

Related article: SEC Chair Gary Gensler’s Exit Could Trigger Settlements in Crypto Legal Cases

However, historical precedent suggests otherwise. The SEC frequently holds such private meetings, and there is no public record indicating that previous sessions have addressed the Ripple case.

Marc Fagel, a former SEC regional director for the San Francisco office, dampened hopes for a breakthrough. He suggested the meeting will likely follow routine procedures. “This is the same meeting they hold nearly every week,” Fagel explained, adding, “They will vote on recommendations calendared weeks ago.”

The Core Dispute: Is XRP a Security?

The lawsuit centers on whether Ripple’s native token, XRP, qualifies as a security. The SEC claims Ripple sold XRP as an unregistered investment, while Ripple argues it is a digital asset for payments, exempt from securities laws.

Related article: Ripple CEO: Fairshake PAC Aims to End SEC’s ‘War on Crypto’

Judge Analisa Torres issued a pivotal ruling in 2023, stating that XRP sales on public exchanges to retail investors did not involve securities transactions. Nonetheless, she ordered Ripple to pay a $125 million fine for other violations, far below the SEC’s initial $2 billion demand.

Ripple paid the fine, but the SEC filed an appeal against the 2023 verdict. This move extended the litigation, showing no signs of resolution. Although Gensler’s departure may signal a shift in regulatory attitudes, achieving a final settlement remains a challenge. For now, the four-year legal saga continues, with both sides showing no intention of backing down.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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