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SEC VS Ripple: Towards a historic resolution for the future of crypto?

Tue 21 May 2024 ▪ 3 min of reading ▪ by Eddy S.
Getting informed Regulation Crypto

The epic legal saga between Ripple Labs and the American stock market regulator seems to be nearing its conclusion. The submission of the final pieces marks a crucial step that will soon seal the fate of the XRP token, with major consequences for the entire crypto ecosystem.

Crypto SEC Ripple

The Time for the Final Plea for the SEC 

Submitted on May 20, the final request from the Securities and Exchange Commission (SEC) marks the culmination of contradictory debates in this sprawling case. In this plea, as muscular as it is crucial for its outcome, the crypto regulator fiercely opposes Ripple’s request to conceal certain accounting documents and strategic financial data.

An opposition of principle, but also legal for the SEC. Indeed, the stock market regulator erects the public’s right of access to trial documents as a historical imperative of judicial transparency, guaranteeing citizens’ trust. A strong argument to oppose Ripple’s desire to keep elements like its financial health status or details of its latest XRP sales secret.

Firmly standing its ground, the Commission denounces what it perceives as a form of inconsistency on Ripple’s part. It highlights that the crypto company cannot both call public opinion to arbitration while concealing the elements on which its assessment of the dispute is based.

A Clash of Visions on the Future of Crypto 

Beyond the procedure, it is a deep divergence on the fate of crypto that rebounds. A division illustrated by the importance of the financial aspect: 2 billion dollars in potential fines according to the SEC versus 10 million for Ripple. An abyssal gap reflecting the dissensions on the nature of XRP: simple technological utility or speculative financial instrument? The upcoming decision will send a strong signal on the future assessment of cryptocurrencies by the authorities. A step towards more legal clarity or the opposite?

Whatever the outcome, this verdict could mark a decisive turning point for the rise or retreat of the crypto ecosystem in the coming years. A decision favorable to Ripple would free up investments towards this digital payments “fintech” and boost its adoption, but would leave gray areas on other tokens. Conversely, a success for the SEC would ensure its case law for drastic regulation, described by some as the “Financial Wild West” today.

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Eddy S. avatar
Eddy S.

The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.