Few events have garnered as much attention as the ongoing lawsuit
between Ripple Labs and the US Securities and Exchange Commission
(SEC) – often referred to as “XRP lawsuit”. This legal battle,
which has significant implications for the broader crypto market,
has seen a series of twists and turns that have kept investors and
industry observers on their toes. In this article, we delve into
the details of the XRP lawsuit, provide the latest updates, and
explore what the future might hold for XRP price. XRP Lawsuit
Overview: What Are The SEC’s Claims? In December 2020, the US
Securities and Exchange Commission (SEC) filed a lawsuit against
Ripple Labs, the company behind the XRP cryptocurrency, and two of
its executives, Brad Garlinghouse and Christian Larsen. The SEC
alleged that XRP is an unregistered security and that Ripple Labs
illegally raised over $1.3 billion through its sale. The SEC’s
position hinges on the application of the Howey Test, a standard
derived from a 1946 Supreme Court case, to determine if a
transaction qualifies as an “investment contract” and therefore
should be considered a security subject to SEC regulation. The SEC
argues that investors in XRP expected profits primarily from the
efforts of Ripple’s management and its corporate actions,
classifying XRP as a security under this framework. XRP Lawsuit:
The Howey Test The SEC’s case hinges on the Howey Test, a
four-pronged test that determines whether an asset is considered a
security under US law. The four prongs of the Howey Test are: An
investment of money: The investor must have invested money in a
common enterprise. A reasonable expectation of profits: The
investor must have a reasonable expectation of profits to be
derived from the investment, solely from the efforts of others.
Participation in a common enterprise: The investor must participate
in a common enterprise with the promoter of the investment. An
expectation of profits from the efforts of others: The investor
must have an expectation of profits from the efforts of others
rather than solely from their own efforts. The SEC argues that XRP
meets all four prongs of the Howey test. Specifically, the SEC
alleges that: Investors purchased XRP with the expectation that its
value would appreciate. Ripple Labs promoted XRP as an investment
opportunity. XRP holders participated in a common enterprise with
Ripple Labs. XRP holders expected to profit from the efforts of
Ripple Labs and others in the XRP ecosystem. Ripple Labs has
vehemently denied the SEC’s allegations, arguing that XRP is a
utility token used for cross-border payments and not an investment
contract. The company has also maintained that its sale of XRP was
not an unregistered securities offering. Ripple XRP Lawsuit: The
Full History The legal saga between Ripple and the US Securities
and Exchange Commission (SEC) has been marked by a series of
pivotal events, shaping the discourse around cryptocurrency
regulation and the classification of digital assets. Below is a
comprehensive timeline of the key milestones in the Ripple vs. SEC
lawsuit. Dec. 21, 2020: SEC Files Lawsuit Against Ripple Labs The
SEC’s lawsuit against Ripple Labs, Brad Garlinghouse, and Christian
Larsen was a pivotal moment in the cryptocurrency industry. This
was the first time the SEC took action against a major crypto
company for allegedly selling unregistered securities. The SEC’s
complaint alleged that Ripple Labs had raised over $1.3 billion
through the sale of XRP, which it classified as an unregistered
security. The SEC also alleged that Ripple Labs had engaged in
ongoing sales of XRP to retail investors, further violating
securities laws. Dec. 28, 2020: Coinbase Delists XRP Following the
lawsuit’s initiation, Coinbase, a major cryptocurrency exchange,
removed XRP from its trading platform. This move was a significant
reaction to the legal uncertainty surrounding XRP’s status and
indicated the potential market impact of the SEC’s actions. Almost
all crypto exchanges followed, delisting XRP for American clients.
Ripple XRP Lawsuit: The Year 2021 March 3, 2021: Larsen and
Garlinghouse Challenge SEC’s Fair Notice Ripple’s executives
contended that the SEC did not provide adequate notice that XRP
would be considered a security. This defense focused on the lack of
regulatory clarity and guidance for market participants regarding
the status of digital assets like XRP. March 8, 2021: SEC Requests
Immediate Hearing In a response to Ripple’s fair notice defense,
the SEC sought a quick hearing, indicating the agency’s urgency in
addressing and refuting Ripple’s claims and moving forward with the
legal proceedings. March 22, 2021: XRP Recognized For Currency
Value And Utility Judge Sarah Netburn’s recognition of XRP’s
utility and currency value was a notable moment in the lawsuit.
This ruling differentiated XRP from typical securities, suggesting
a possible unique legal standing for XRP compared to other digital
assets. June 14, 2021: SEC’s Internal Crypto Trading Policies
Deadline Extended The court’s decision to extend the deadline for
the SEC to disclose its internal cryptocurrency trading policies
indicated the complexity and sensitivity of the information
expected, which could potentially impact the case’s direction. Aug.
31, 2021: Deadline for SEC’s Internal Crypto Trading Policies
Disclosure The disclosure of these policies was anticipated to
provide transparency into the SEC’s internal stance on
cryptocurrencies and potential conflicts of interest, which could
have implications for the lawsuit. Oct. 15, 2021: Expert Discovery
Deadline The inclusion of expert opinions from the fields of
cryptography and securities law aimed to bring technical and legal
clarity to the case, potentially influencing the court’s
understanding of XRP’s nature. XRP Ripple Lawsuit: The Year 2022
Jan. 24, 2022: Extension for Sensitive Document Disclosure The
extension allowed the SEC more time to contest the decision
requiring the disclosure of sensitive documents, highlighting the
critical nature of these documents in the legal battle. Sept. 17,
2022: Motions for Summary Judgment Filed The filing of summary
judgment motions by both parties was a crucial step in the legal
process, summarizing their arguments and legal positions, and
moving the case closer to a resolution. Sept. 21, 2022: Chamber of
Digital Commerce Granted Amicus Curiae Brief Filing The court’s
permission for the Chamber of Digital Commerce to file an amicus
curiae brief brought an additional perspective from a key
blockchain advocacy group, potentially influencing the court’s
understanding of the broader industry context. Dec. 2, 2022:
Replies to Summary Judgment Motions Made Public The public release
of these replies provided deeper insights into the legal strategies
and arguments of both the SEC and Ripple, clarifying the stakes and
positions in the lawsuit. Dec. 22, 2022: SEC’s Attempt to Prevent
Public Release of Hinman Documents The SEC’s efforts to block the
release of the Hinman documents underscored their potential
significance in clarifying the SEC’s internal views and policies
regarding digital assets like XRP. Ripple Clinches Four Victories:
The Year 2023 #1: June 12, 2023: Hinman Documents Unsealed And Made
Public The Hinman emails were released in the SEC Ripple case on
June 13, 2023. These emails, related to former SEC director William
Hinman, were part of the SEC’s lawsuit against Ripple Labs, and
their release had been highly anticipated for months. The documents
included exchanges between Hinman and Ethereum founders Vitalik
Buterin and Joe Lubin. They revealed that Hinman ignored
instructions from high-ranking SEC officials in preparation for his
June 14, 2018 speech, where he discussed Ether and its
classification as a security. Ripple’s CEO, Brad Garlinghouse,
stated that the Hinman documents were “well worth the wait”. The
release of these emails had severe implications for the SEC’s
credibility and the ongoing XRP lawsuit, and marked the first
victory for Ripple. #2: July 13, 2023: Ripple Labs Wins The Summary
Judgment Ripple Labs achieved its second, although partial victory
in its legal battle with the SEC. The US District Court for the
Southern District of New York ruled that the sale of Ripple’s XRP
tokens on exchanges and through algorithms did not constitute
investment contracts. This was a significant decision because it
implied that these sales were not subject to federal securities
laws. However, the court found that Ripple’s direct sales of XRP to
institutional buyers, hedge funds, and other parties were in
violation of federal securities laws. These institutional sales,
amounting to approximately $770 million, were deemed as
unregistered offers and sales of investment contracts. The court’s
ruling was based on the expectation that investors in these
institutional sales would profit from Ripple’s efforts to promote
and increase the value of XRP. This ruling was notable because it
provided some clarity on the circumstances under which digital
assets like XRP could be considered securities. For the
programmatic sales through exchanges and algorithms, the court
found no evidence that a reasonable buyer would have the
expectation of profits derived from the efforts of Ripple’s
management. This aspect of the ruling was a relief for Ripple, as
it suggested that regular sales of XRP to general investors did not
violate securities laws. The court’s decision not to grant the
SEC’s motion for summary judgment on the “aiding and abetting”
claim against Ripple executives Larsen and Garlinghouse further
bolstered Ripple’s position. #3: October 3, 2023: Judge Torres
Denies SEC’s Interlocutory Appeal The SEC’s interlocutory appeal
against Ripple was denied on October 3, 2023. The decision marked
the third consecutive loss for the SEC in its legal battle with
Ripple, where Judge Torres rejected the SEC’s attempt to appeal its
loss against Ripple, setting the stage for further proceedings in
the case. #4: October 19, 2023: SEC Drops Claims Against Ripple
Labs Executives In its fourth loss to Ripple, the SEC dropped
charges against Brad Garlinghouse and Christian Larsen. This left
Ripple Labs as the sole defendant in the lawsuit. This decision was
a surprise to many observers, as it suggested that the SEC may have
been losing confidence in its case against the individual
executives. Pending: Ripple XRP Lawsuit – The Trial A trial date
has yet to commence. The trial will be a high-stakes event for
Ripple Labs, as the company could face significant penalties for
its institutional sales worth $770 million which were considered
unregistered securities sales. The trial is scheduled to take place
between April and June 2024. The remedies phase will determine the
appropriate fine for Ripple’s past institutional sales of XRP,
valued at $770 million. The SEC will seek the entire amount as
penalties. Ripple might attempt to reduce this figure by arguing
for the exclusion of legitimate business expenses and XRP sales
outside the United States. XRP Wins Lawsuit: But What About
Remedies? John E. Deaton’s Analysis John E. Deaton, who acted as
amicus curiae in the XRP lawsuit, expressed strong confidence in
Ripple’s success in the ongoing lawsuit with the SEC. He predicted
that Ripple has a 99.1% chance of winning, contingent on agreeing
to a fine not exceeding $20 million. Deaton argued that the SEC
could not demand significant disgorgement without proving harm to
investors. In his analysis he also emphasized that the people who
viewed the SEC’s victory as 50-50 were mistaken. He suggested that
it was more like a 90-10 win in Ripple’s favor. According to
Deaton, if Ripple ends up paying a fine of $20 million or less, it
would represent a near-total legal victory. Jeremy Hogan’s
Analysis Jeremy Hogan, another pro-XRP attorney, recently provided
insights into the potential arguments Ripple might use during the
remedies briefing. Hogan referred to the SEC v. Liu case, which
emphasized that disgorgement should be “fair” and based on the
violator’s net profits rather than gross. He suggested that Ripple
is likely to deduct its legitimate business expenses from any
potential penalties. Hogan also pointed out that sales outside the
SEC’s US jurisdiction could be excluded from the total sum. This
could seriously affect the penalties’ final amount. Additionally,
he mentioned that disgorgement should go to those who experienced
financial losses, namely individuals or entities that suffered
investment losses. If an XRP holder acquired the cryptocurrency at
a lower price than its current value, they would not qualify as
victims, thus challenging the SEC’s case for disgorgement. Hogan
concluded, “In conclusion, $770 million is NOT going to be $770
million, but something much less.” XRP Lawsuit News As of November
2023, the ongoing legal battle between Ripple Labs and the US SEC
has entered a crucial phase. Both parties have submitted a joint
proposal for the next stage of the lawsuit. This proposal focuses
on the remedies briefing and discovery process. Important: Stay up
to date with the latest news in the XRP lawsuit on NewsBTC. XRP
Lawsuit Next Court Dates: Upcoming Schedule Pro-XRP lawyer John E.
Deaton has provided the final dates for the Ripple vs. SEC case, as
per the orders from US District Judge Analisa Torres. According to
the schedule based on the remedies and discoveries filing: February
12, 2024: Deadline for both parties to conclude all
remedies-related discovery. March 13, 2024: The SEC is required to
file its brief regarding the remedies. April 12, 2024: Ripple will
file its opposition to the SEC’s brief. April 29, 2024: The SEC is
expected to file its response to Ripple’s opposition. Deaton
predicts that the lawsuit’s conclusion will likely occur in July
2024, during the summer. This schedule sets the stage for the final
phases of this landmark case. XRP Lawsuit End Date Predictions:
When Will The XRP Lawsuit Be Over? The Ripple vs. SEC lawsuit is
entering a critical phase, with various experts providing insights
on the potential XRP lawsuit end date. John Deaton sees the penalty
phase as a complex stage. The SEC could demand $770 million for
Ripple’s institutional sales of XRP. Deaton anticipates a
time-consuming process to finalize the penalty fee, potentially
extending the case into the late summer 2024. There’s also
speculation about the SEC’s intent to appeal. The SEC, led by Gary
Gensler, might consider this route after Judge Analisa Torres
delivers the final verdict. An appeal could prolong the case by at
least another year. The XRP lawsuit end date would be dragged out
for years. Earlier in the lawsuit, the SEC’s attempt for an
interlocutory appeal was denied, implying they must wait for the
final judgment. Given the SEC’s previous decision not to appeal in
a similar case with Grayscale, the likelihood of an appeal remains
uncertain. Pro-XRP Attorney Fred Rispoli, closely following the
lawsuit, commented on the recent court order that schedules the
upcoming remedies phase. The court order requires the completion of
remedies-related discovery by February 12, 2024, with the
subsequent filing of briefs and responses extending to April 29,
2024. Rispoli speculates that in the event of an appeal, the Second
Circuit may not deliver a ruling until at least mid-2026. XRP Price
Prediction After Lawsuit Win The resolution of the Ripple vs. SEC
lawsuit, especially if it results in a favorable outcome for
Ripple, is expected to exert a substantial influence on XRP’s
price. However, it’s important to note that price predictions are
speculative and subject to various market forces. XRP Price After
Lawsuit: How High Will It Go? The summary judgment on July 13,
2023, which found that XRP is not considered a security, had a
notable impact on its market performance. Following the summary
judgment on July 13, price surged from $0.475 to $0.95, marking a
100% increase. The trading volume for the token also exploded,
spiking by almost 2,000%. This surge propelled XRP to become the
fourth-largest cryptocurrency by market cap. The reinstatement of
XRP on major US exchanges like Coinbase, Kraken, and Gemini, which
had halted trading after the SEC’s lawsuit, further bolstered this
momentum. A final victory by Ripple in the XRP lawsuit could have
similar implications. Past price moves could be indicative for a
XRP price prediction after lawsuit. However, neither the dismissal
of the interlocutory appeal nor the dismissal of the claims against
the two Ripple executives had such a major impact on the XRP price
as the summary judgment. However, predicting the exact price of XRP
post-lawsuit is challenging due to the volatile nature of the
crypto market. Factors like overall market trends, investor
sentiment, and broader economic conditions will play a significant
role. A victory by Ripple is a bullish signal for XRP. This could
potentially result in a significant rise in its price. Short-Term:
In the immediate aftermath, XRP price could experience a sharp
increase as investors react to the news. Long-Term: Over time, the
price might stabilize as the market absorbs the impact of the
lawsuit resolution. Ripple could drive long-term growth by
continued development and adoption in the financial industry. XRP
Price After Lawsuit Win: Predictions Predictions about XRP’s price
post-lawsuit victory vary among analysts. Some conservative
estimates target a rise to $1 by the end of the year following a
Ripple court victory. More bullish analysts suggest that Ripple
could retest its all-time high of $3.84 within hours of the court
decision. Moreover, many believe that no technical resistance
exists to prevent further rises in XRP’s price. Each new banking
partnership could potentially serve as a catalyst for the token’s
value increase. FAQ: XRP Lawsuit How High Will XRP Go After The
Lawsuit? The future price of XRP post-lawsuit is speculative.
Factors influencing this include the lawsuit’s outcome, market
conditions, and investor confidence. Previous data suggest that the
XRP price is highly sensitive to news from the Ripple Labs vs. US
SEC lawsuit. When Will The XRP Lawsuit Be Over? The timeline for
the conclusion of the XRP lawsuit is uncertain. Legal proceedings
can be lengthy and unpredictable. However, based on current
progress of the case, the lawsuit is likely to conclude in 2024
with the remedies phase. A SEC appeal could further delay the case
for years. Did XRP Win The Lawsuit? Ripple Labs has achieved
significant legal victories. Most importantly, judge Analisa Torres
ruled that the XRP token itself is not a security. However, this
ruling applies only to specific aspects of the case. Additionally,
the SEC achieved a partial victory: the court declared that
Ripple’s institutional sales worth $770 million are security sales.
Has the XRP Lawsuit Been Dropped? The XRP lawsuit is still ongoing.
It has progressed through various stages, with recent rulings
favoring Ripple. The remedies phase, starting in April 2024 is
next. Will XRP Win The Lawsuit? Predicting the complete outcome of
the XRP lawsuit is difficult. While Ripple Labs has achieved a
landmark win, the case involves complex legal arguments. Also, the
potential for a SEC appeal exists. Ultimately, the SEC could take
the case before the US Supreme Court. What Is The XRP Lawsuit All
About? The XRP lawsuit by the SEC concerns allegations that Ripple
conducted a $1.3 billion unregistered securities offering by
selling XRP. The SEC argues that XRP sales and trading did not meet
the principles of the Howey Test. What Is The Significance Of The
XRP Lawsuit For The Cryptocurrency Market? The lawsuit’s outcome is
significant for the entire cryptocurrency industry, potentially
influencing US and global regulatory approaches to
cryptocurrencies. It may set precedents for how cryptocurrencies
are classified and regulated. How High Will XRP Go After Lawsuit?
The price prediction for XRP after the lawsuit is largely
speculative and hinges on various market factors. Some experts and
investors anticipate that XRP could reclaim its all-time high of
$3.40. Featured images from Shutterstock
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024