In a recent turn of events, Ripple, the blockchain-based payment protocol, has secured a notable advantage in its ongoing legal skirmish with the U.S. Securities and Exchange Commission (SEC). This resurgence in Ripple’s position is closely linked to renewed attention on the pivotal “Hinman documents,” shaping the narrative surrounding Ripple’s native cryptocurrency, XRP.
Over the weekend, the absence of updates in the SEC v Ripple lawsuit left investors speculating about the lawsuit’s impending resolution. As the legal battle between Ripple and the SEC reaches its final stages, recent developments suggest that the tides are turning in Ripple’s favor.
A significant milestone was reached when the SEC dropped allegations against Ripple co-founder Chris Larsen and CEO Brad Garlinghouse. This move was a direct outcome of the Programmatic Sales ruling, marking a double victory for Ripple in the legal arena. Despite these legal triumphs, XRP’s market value has remained below the $0.70 mark.
However, the potential for an appeal by the SEC against the Programmatic Sales finding casts a shadow over Ripple’s recent successes. Legal insights indicate the SEC’s intention to contest the Programmatic Sales verdict in the courts of appeal, but the regulatory body must wait until the Ripple case concludes before filing an appeal.
Notably, the SEC’s attempt to expedite the legal proceedings faced a setback when the judge rejected the motion for an interlocutory appeal. Had the interlocutory appeal been accepted, it would have prolonged the case until 2025. Following this rejection, the SEC withdrew charges against Larsen and Garlinghouse and signaled a willingness to engage in settlement negotiations.
While the prospect of a minor penalty for XRP sales to U.S. institutional investors provides some positive momentum, the uncertainty surrounding a potential SEC appeal remains a limiting factor. Ripple’s journey through the legal labyrinth continues, with market participants closely watching how these developments will shape the future of XRP and its standing in the cryptocurrency landscape.
