XRP SEC Lawsuit: Can The Court Case Be Finally Closed?

This year's Ripple controversy that started in 2020 and set a precedent for the cryptocurrency industry seems to be coming to an end. XRP SEC lawsuit. In December 2020, the SEC, the Securities and Exchange Commission, filed a lawsuit against Ripple, claiming that their XRP cryptocurrency is a security rather than a commodity. The SEC illegally raised $1.8 billion from token sales of blockchain companies. The regulator also expects XRP buyers to make a profit after buying the coin.

In a statement, the SEC wrote: "Ripple has publicly announced the various actions it will take to achieve the 'usability' of XRP and maintain the integrity and liquidity of the XRP market."

Chris Larson, president of Ripple Labs, said the sale was legal. His argument is based on a US court ruling known as the Hawaii test that determines whether a property is a security. In a statement, Ripple stated that the company has no obligation to protect the interests of XRP holders, and therefore no rights are granted.

In this regard, the case between Ripple Labs and regulators is one of the most significant disputes between cryptocurrency companies. Even after a year on trial, it is difficult to say who was first in the trial. In the past two years, the parties have presented various research questions and presented many documents, but the two sides have not been able to provide much evidence to prove their point of view.

XRP SEC. The views of the parties

During the trial, one of Ripley's community attorneys, James Phelan, revealed that Chair Sarah Netburn had rejected the SEC's request to review the defense documents provided by William Hinman on a June 2018 conference call. Hinman was a director of the SEC and at the time he acknowledged that Bitcoin and Ethereum cannot be classified as shares.

The SEC said Hinman's comments were his personal views and did not reflect the agency's official position. But Filan said. "This is a huge win for Ripple."

Meanwhile, Ripple's general counsel Stu Alderotti said the filing showed the SEC was acting outside its legal limits.

Ripple CEO Brad Garlinghouse appeared on Fox Business and said: "Before the SEC got involved with us and ETH, XRP was the second most valuable digital asset ahead of ETH."

New breakthrough in this case

The high-profile case involves multiple arguments and appeals. Both the SEC and Ripple recently filed motions for summary judgment in the Southern District of New York, asking District Judge Torres to decide on the arguments in the related documents. The documents were entered into the federal court database in mid-September. Ripple Labs hopes the charges against him will be dropped, so the so-called “XRP vs. SEC” legal battle can end soon.

This news suddenly raised the price of XRP. In 2 days, market capital increased from $17.1 billion to $2.1 billion. Meanwhile, the price of XRP rose 17%, from $0.34 to $0.4.

Why is the outcome of the case important?

It is widely believed that the SEC's decision against Ripple Labs could have further implications for other crypto companies and their coins. If Ripple wins, cryptocurrency companies will have precedent for claiming that it doesn't belong to them and shouldn't be considered shares.

If the SEC wins, they will decide which cryptocurrencies will stay and which ones should leave. If a case is found against them, it will allow the commission to prosecute various digital assets, including Tron and other cryptocurrencies. If the SEC wins, Chairman Gary Gensler could control a trillion-dollar industry. This can really create a ripple effect.

“Ripple is fighting this lawsuit on behalf of the entire cryptocurrency industry,” Stu Alderotti said in an emailed statement in response to a question.

So when will the SEC vs Ripple case end? Immediately, if the document is considered by the judge. In an interview in front of the Mainnet fireplace, Garlinghouse CEO said that it would only take two to six months to fix what started in December 2020.

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Information about Ripple Labs and XRP

The Ripple network, which aims to make fast and cheap payments to financial institutions, has been using XRP as its native token since early 2013 to raise funds for companies. However, Ripple is not a cryptocurrency. This is the company behind the XRP token. Ripple Labs Inc and describes itself as a "payment solutions company". Today, it mainly focuses on cross-border cryptocurrency payments and cryptocurrency facilitation.

To implement their plan, the company created a global network where transactions are accelerated in the form of XRP, a digital asset created specifically for this purpose. XRP is the native token of the Ripple network and is among the top 10 cryptocurrencies by market cap.

Ripple operates the payment network RippleNet. The network consists of banks and payment service providers who have signed up to use the Ripple blockchain network for global payments. Ripple also operates the XRP Ledger network, which facilitates payments in the XRP digital currency.

XRP's main strength has always been speed. Unlike Bitcoin which usually takes a long time to complete transactions, XRP transactions are completed in seconds. This is because XRP does not use the same verification algorithm that other cryptocurrencies use to verify payments.

This network operator or independent hub checks all pending XRP transactions every three to five seconds. Then publish the latest version of XRP Ledger. Ripple calls it the Ripple Protocol Consensus Algorithm.

Problems using XRP

There are currently two main use cases for XRP.

• Currency exchange with low fees. In most cases, one currency cannot be directly converted to another and the intermediate currency must be converted first. Usually the currency is the US dollar. XRP can act as an intermediary currency, but at a lower cost per transaction.
• International transactions. Ripple has long been praised for its fast local transaction speeds as an alternative to traditional bank transfers, which can take days and have high fees.

XRP has a maximum supply of 100,000 billion coins, half of which are in circulation. XRP is also a centralized cryptocurrency while Bitcoin is decentralized.

Ripple has been in the cryptocurrency game to win the trust of major financial institutions and governments. This trust makes it a safer investment than other cryptocurrencies. All XRP tokens have been generated and Ripple will distribute them according to a specific schedule. This means there is no inflation.

At the same time, Ripple's central system is more open to censorship than other cryptocurrency platforms. Since control is in the hands of a few people, those people can block transactions like a normal bank.

Investors can use the XRP software wallet to hold the XRP cryptocurrency exchange. For security, wallets that manage users' private keys are offered. Alternatively, web-based wallets that manage users' private keys often charge transaction fees as well.

Is Ripple XRP a good investment?

Ripple's potential is clear. It can replace ineffective and outdated international currency exchange systems. However, the future still looks bleak with legal battles, but since the company represents the entire cryptocurrency industry, we hope they win the case against the SEC and move on.

Where and how to buy XRP coins?

StealthEX is here to help you buy utility tokens like Ripple (XRP). You can do this directly and without signing up for the service. Our cryptocurrency collection includes more than 600 different coins, and you can transfer from one wallet to another quickly and without any problems.

Go to StealthEX and follow these simple steps:

1. Choose a pair and sell the amount you want. For example BTC to XRP.
2. Click the "Start Exchange" button.
3. Provide the recipient's address to transfer your cryptocurrency.
4. Transaction progress.
5. Get your cryptocurrency.

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Remember to do your research before buying any cryptocurrency. The views and opinions expressed in this article are those of the author.

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Post XRP SEC case. Can the lawsuit be closed for good? It first appeared on StealthEX.