Ripple Case Reaches Climax, Crypto Industry Holds Its Breath

The long-running lawsuit between Ripple Labs and the Securities and Exchange Commission (SEC) is nearing its climax, with a verdict expected within days, according to a veteran of the SEC.

The case centers on whether XRP, the cryptocurrency created by Ripple, is a security. The SEC argues that XRP is a security because it was sold to investors as an investment contract. Ripple argues that XRP is not a security because it is a currency that can be used to buy and sell goods and services.

The case has been ongoing for over two years, and both sides have filed extensive legal briefs. In December 2022, Judge Analisa Torres ruled that the SEC had to turn over documents related to a speech given by former SEC director William Hinman in which he said that ether, another cryptocurrency, was not a security. The SEC has appealed the ruling, but the appeals court has not yet ruled.

With the Hinman documents now in hand, Ripple is hoping to prove that XRP is not a security. The company has also filed a motion for summary judgment, asking the court to rule in its favor without a trial.

The SEC has not yet filed a response to Ripple’s motion for summary judgment. However, the SEC has said that it is confident that it will win the case.

A veteran of the SEC who is familiar with the case told EthNews that he expects a verdict within days. He said that the case is “close” and that the judge is likely to rule in favor of one side or the other.

A verdict in favor of Ripple would be a major victory for the cryptocurrency industry. It would set a precedent that could make it more difficult for the SEC to regulate cryptocurrencies.

A verdict in favor of the SEC would be a setback for the cryptocurrency industry. It would send a signal that the SEC is willing to take aggressive action against cryptocurrencies.

The case is being closely watched by the cryptocurrency industry and by investors. A verdict in either direction could have a significant impact on the price of XRP and on the future of the cryptocurrency industry.