The cryptocurrency world has been watching with bated breath as the US Securities and Exchange Commission (SEC) launched a lawsuit against Ripple Labs, the company behind the XRP token. But recent events have tipped the balance in Ripple’s favor. Here’s a deep dive into the latest updates on XRP demand.
The SEC drops the ball, doesn’t it?
In a recent turn of events, the US SEC decided to drop its lawsuits against two Ripple Labs executives, Brad Garlinghouse and Chris Larsen. Initially, the SEC’s complaint, filed in December 2020, accused Ripple of raising more than $1.3 billion in an unregistered securities offering through sales of XRP.
However, US District Judge Analisa Torres ruled that sales of XRP on public exchanges did not qualify as offerings of unregistered securities. While siding with the SEC, pointing out that Ripple’s $728.9 million sales to hedge funds and other sophisticated buyers were a violation, the withdrawal of claims against the two executives is still considered a partial victory. for Ripple (XRP).
Both Garlinghouse and Larsen did not hold back their criticism of the SEC, with Garlinghouse suggesting that the SEC was targeting the wrong people. In the broader context of the crypto industry, this case has been seen as the SEC’s attempt to clamp down on what they perceive as securities, a stance that has met with considerable pushback from industry experts.
XRP Demand: Implications and Industry Reactions
Despite the recent ruling, the final outcome of the SEC vs. Ripple remains a topic of speculation. Legal expert Jeremy Hogan suggests that the core of the case is essentially resolved, and that only Ripple needs to worry about the final ruling, which will be decided sometime next year.
However, other speculation suggests that the SEC may point to the ruling on programmatic XRP sales. If Ripple and the SEC find common ground on “remedies,” the SEC would not be able to appeal a settlement. But if they decide to appeal the ruling on programmatic sales, it could tip the balance in favor of the SEC.
Meanwhile, XRP price dynamics have reflected the ups and downs of demand. Recently, XRP gained 1.22%, recovering from a previous loss of 1.04%, and ended at a value of $0.5213. For investors and traders, it is essential to keep an eye on the changing XRP demand landscape and its implications on the price of XRP.
A crucial moment for crypto regulations
The XRP demand is not just about one company or token. It symbolizes the broader regulatory challenges facing cryptocurrencies in the US. As SEC Chairman Gary Gensler steps up scrutiny, suggesting that many digital assets qualify as securities, the industry continues to advocate for clearer and more tailored regulations.
In conclusion, the XRP lawsuit, with its twists and turns, has become a symbolic legal battle, reflecting the challenges and uncertainties of the rapidly evolving cryptocurrency landscape. As Ripple prepares for the next stages of this legal confrontation, the crypto community waits with anticipation, understanding that the outcome of the case could set important precedents for the future.
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