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As Ripple Gains The Upper Hand In The SEC Lawsuit, XRP Is Poised For Significant Shakeup.

For a time, it appeared as if the US Securities and Exchange Commission had the upper hand in the legal dispute. However, the situation has shifted in recent months as Ripple has secured a string of procedural successes. Following the upheaval, legal experts anticipate that the future judgements will clear up any confusion about the nature of XRP.

Source: Shutterstock

Ripple community defense lawyer James K. Filan recently announced on Twitter that the US Securities and Exchange Commission’s (SEC) application to seal has been denied by the court.

According to the tweet, the court agrees with Ripple’s argument that the SEC was trying to seal more than is necessary and has ordered the SEC to file a letter stating the specific exhibits it intends to seal and explaining the reason for the redactions ‘to the extent necessary to safeguard information sought to be filed under seal.’

It took more than five weeks for Ripple Labs to respond after the US SEC filed the suit, but the blockchain pioneers’ legal team, along with CEO Brad Garlinghouse, have been taking highly concerted steps to resist the SEC’s attack on their integrity as a corporation.

Garlinghouse has been sure since the beginning of the litigation that Ripple is following the law and that the SEC is attempting to start a war with the entire crypto industry.

The presiding Judge in the case, Judge Sarah Netburn, has received multiple legal notes from Ripple’s staff in the courtroom. Ripple has maintained that they have always tried to engage with the SEC in the past to avoid regulatory violations, and that the US SEC has been ‘deliberately misreading’ its RFAs, among other things.

Source: Shutterstock

The outcome of the 18-month-long lawsuit is critical for cryptocurrency supporters, policymakers, and the blockchain sector as a whole. If the court rules in favor of the US SEC, Ripple Labs’ native currency, XRP, will be regarded a security, setting a dangerous precedent for the crypto-world.

It could eventually kick off a chain reaction of litigation against similar institutions in the crypto world for labeling their respective crypto assets as securities.

Notably, XRP’s liquidity in the US dried up after numerous cryptocurrency exchanges were forced to remove it from their sites. Nonetheless, Ripple CEO Brad Garlinghouse stated that the company’s outstanding growth is occurring outside of the United States. Ripple’s clients, in instance, are 95% non-US payment providers.

A victory for Ripple would be excellent news for cryptos that have been hampered by uncertainty.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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