It might not be long until the Ripple court case, which has been ongoing since 2020 and will set a precedent for the cryptocurrency sector, is resolved. The US Securities and Exchange Commission (SEC) and Ripple Labs, the corporation that created Ripple, have both filed applications for summary judgment (XRP).
The SEC is going outside of its legal authority, according to the documents, said Stu Alderoty, general counsel at Ripple, to Capital.com. The SEC wants to change the law rather than apply it, in an effort to increase their authority beyond what is permitted.
The anticipated timescale, however, may be impacted by recent events, such as an amicus brief—written submissions—from the Chamber of Digital Commerce.
Despite this, the first indication of the court case’s resolution caused XRP to jump during the course of last week.
The protest also took place after Ripple’s CEO, Brad Garlinghouse, criticized the SEC on Fox Business, calling it “cuckoo for cocoa puffs” and having “lost its way.”
The dearth of announcements this week regarding a new timeline for the court case or other details about the case, however, suggests that the breakout may be slowing down.
XRP: Is it a security?
The native cryptocurrency XRP, which was first introduced in 2013 to raise money for the company, powers Ripple, a cryptocurrency network that aims to offer quick and inexpensive payments to financial institutions.
However, the SEC filed a lawsuit against Ripple Labs in December 2020, alleging that the company had raised $1.3 billion by selling XRP through unregistered security transactions.
Chris Larsen, the chairman of Ripple Labs, and Garlinghouse asserted that the sales were legitimate. Their case was founded on the so-called Howey Test, which analyzes whether an asset is a security and was used in a US court case.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.