Ripple, while celebrating the end of its four-year legal battle with the U.S. Securities and Exchange Commission, some lawyers expressed doubts about whether the latest court developments truly constituted a victory. Ripple, the company behind XRP and an exchange network, celebrated the end of its four-year legal battle with the SEC on August 7.
What’s Happening on the Ripple Front?
Announcing the news via X, Ripple CEO Brad Garlinghouse argued that Judge Analisa Torres reduced the SEC’s plan to impose a $2 billion compensation penalty on Ripple by 94% and shared the following statements:
“This process is a victory for Ripple, the industry, and the rule of law. The SEC’s negativity towards the entire XRP community has been eliminated.”
The community quickly reacted to Garlinghouse’s announcement with a 26% increase in XRP. While many lawyers called the latest court decision a major victory for Ripple, some hesitated to label it a complete victory. Some even suggested that this might not be the end of the legal battle.
Striking Statements on the Matter
According to Philip Moustakis, a lawyer at Seward & Kissel and a former SEC advisor, the decision to reduce the SEC’s compensation claim from $2 billion to $125 million is certainly not a victory for the SEC, but it is still hard to say there is a winner in the case. This is due to the ongoing lack of clarity on how U.S. securities laws should apply to cryptocurrencies, the legal defense costs plus the fine, and the disruption to Ripple’s business since the case began in late 2020. According to a report in the legal news service Law360, Moustakis said:
“Ripple is a winner, but I think in the big picture, if you have to be involved in a lawsuit for years, have your asset delisted from exchanges at least temporarily, fight a regulator, and pay a hefty fine, it doesn’t feel like a victory.”
Besides the high costs of Ripple’s victory, the SEC may still appeal certain aspects of the case.
