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- 1 The case of the SEC and Ripple underwent a never-ending loop.
- 2 Both parties are standing on their words, which may affect the entire crypto industry.
The endless battle between the SEC and Ripple penetrated a new phase with no compromise in sight. The agency is driving Ripple to uncover the financial statements for the years 2022 and 2023 to closely examine the lawfulness of XRP. According to the SEC, Ripple managed unlisted securities offerings that overstepped the laws.
What Actually Happened?
SEC pointed out a lawsuit against Ripple in December 2020 for growing around $1.3 Billion illegally. The co-founder Christian Larsen and the present CEO of Ripple, Bradley Garlinghouse are held answerable for the situation.
According to the SEC, Ripple Labs raised over $1.3 Billion between 2013 and 2020 in an illegal manner. The firm availed services for non-cash transactions and propelled the token sales in XRP.
The case is critical for all the individuals operating in the crypto industry and entering a deadlock phase with no settlement in sight. The ongoing tug-of-war not showing any final destination.
Both parties are standing on their word, centering on financial positioning. The SEC is pushing Ripple Labs to uncover the financial statements for 2022 and 2023. The purpose is to properly investigate Ripple’s operations since the complaint in December 2020.
In revert, the platform is preparing a defense that represents immunities for institutional sales, despite violating securities laws. If made it, Ripple could mitigate all the financial penalties the platform is facing currently.
Furthermore, Ripple criticized SEC for broadening the allegations, stating it an “inappropriate extension of allegation”. Focusing on the current situation, a settlement between both parties seems unlikely. However, there are chances of future discussions and negotiations.
The Impact of the Case on the Crypto Industry
The result of the case can affect the performance of the whole cryptocurrency industry. Considering the ongoing situations and cases, the SEC is expected to establish rules and regulations for operating digital assets.
The change in regulations thus going to influence the entire crypto sector. Also, the CEO of the fintech firm InvestReady responded to the case. Seeking for the court’s permission to register a legal record that helps the SEC in its legal suit against Ripple.
According to CoinMarketCap, the 24-hour volume of the crypto market is $43.39 Billion, a reduction of 10.09%. Additionally, the total volume of stablecoins is around $39.23 Billion, which is 90.42% of the entire crypto field.
Focusing on previous years’ data, the crypto industry is gradually rising in terms of revenues. According to Statista, the industry generated around $7.3 Billion in 2020 and over $40.7 Billion in 2023. Based on the predictions, the industry is assumed to touch $$59.6 Billion by 2025 and around $71.7 Billion by 2028.
Ripple Labs is a foremost player in the crypto globe offering a wide scope of solutions including the development and supervision of the XRP Ledger and other blockchains.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
