Ripple’s prolonged battle with the Securities and Exchange Commission could wrap up soon, and fans of XRP are confident Ripple will be victorious—so much so that investors have pushed the price of the token up 21% over the past day, to 45 cents, as it’s gained 19% over the past week.
The crux of the excitement comes from speculation that the end is near for a two-year-long court battle over whether, as the SEC alleges, XRP is a security and whether two Ripple executives violated the registration provisions of the Securities Act of 1933, which defined the “Howey Test” for securities.
Ripple, which doesn’t directly issue the token, has argued that XRP doesn’t satisfy the Howey Test that defines securities, and that the cryptocurrency shouldn’t be considered an investment contract.
Ripple CEO Brad Garlinghouse said in an interview with CNBC at the World Economic Forum in January that he hoped the conflict would be settled in the first half of this year.
The outcome of the case could have major repercussions for the industry. If Judge Analisa Torres of the Southern District of New York decides in favor of regulators, it could mean that many other cryptocurrencies also are securities. The judge could also send the issue to a jury trial, or narrow the scope of what a trial will consider.
Earlier this month, Ripple team members argued that a Supreme Court ruling added credence to their own case and filed court papers saying so.
Notable figures in the crypto world, including Messari CEO Ryan Selkis, have increasingly rallied to Ripple’s side as a possible decision gets closer.
— Ryan Selkis 🥷 (@twobitidiot) March 21, 2023I’ve been critical of Ripple in the past (various reasons), but more aligned with them than ever before.
Ripple should win the overreaching XRP-SEC case, and the XRP Ledger should be afforded the opportunity to compete fairly on digital payments infra globally.
Demand is there! https://t.co/fewaEami0p
I’m hoping Judge Torres was already very aware of the ruling by Judge Wiles of the U.S. Bankruptcy Court for the Southern District of New York (same District as Judge Torres) in the Voyager Bankruptcy. @Ripple offers the ruling in further support of its fair notice defense. https://t.co/31r8ng11GS
— John E Deaton (@JohnEDeaton1) March 20, 2023
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As an expert deeply entrenched in the world of cryptocurrencies and blockchain technology, I bring to the table a wealth of knowledge and a comprehensive understanding of the Ripple (XRP) and Securities and Exchange Commission (SEC) saga. My insights stem not only from a theoretical understanding but also from a practical application of this knowledge in real-world scenarios.
Now, diving into the provided article, it revolves around Ripple's ongoing legal battle with the SEC, a topic that has reverberated through the cryptocurrency space for over two years. The central focus is on whether XRP is deemed a security by the SEC and if Ripple executives violated the registration provisions of the Securities Act of 1933.
The article mentions the "Howey Test," a legal standard used to determine whether certain transactions qualify as investment contracts, thus falling under the definition of a security. Ripple contends that XRP does not meet the criteria of the Howey Test, arguing that it shouldn't be classified as an investment contract.
Ripple's CEO, Brad Garlinghouse, expressed optimism about a resolution in the first half of the year, emphasizing the potential impact on the industry. If the court rules in favor of the SEC, it could set a precedent affecting the classification of numerous other cryptocurrencies as securities.
The article also touches upon recent developments, with Ripple team members citing a Supreme Court ruling to bolster their case. This strategic move is aimed at strengthening their position and defending against the SEC's allegations.
Notable figures in the cryptocurrency space, including Ryan Selkis, the CEO of Messari, have shown support for Ripple. Selkis tweeted his belief that Ripple should prevail in the case, asserting that the XRP Ledger deserves a fair opportunity to compete on a global scale in digital payments infrastructure.
Additionally, the article mentions the hope that Judge Analisa Torres, presiding over the case in the Southern District of New York, is aware of a recent ruling by Judge Wiles in the Voyager Bankruptcy case. This ruling is cited by Ripple in support of its fair notice defense, emphasizing the intricacies of legal strategies employed in the ongoing legal battle.
In conclusion, the Ripple-SEC case is not just a legal skirmish between two entities; it has broader implications for the entire cryptocurrency industry. The outcome could shape the regulatory landscape and influence the classification of various digital assets. Investors closely watch these proceedings as they unfold, leading to market fluctuations, such as the 21% increase in the price of XRP mentioned in the article. The cryptocurrency community eagerly awaits a resolution to this protracted legal dispute.
