Ripple vs. SEC: 4-year legal battle sees a light at the end of the tunnel
Brad Garlinghouse recently expressed optimism about the case
The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) may be approaching a resolution after nearly four years of intense litigation.
Ripple CEO Brad Garlinghouse recently expressed optimism about the case on social media, suggesting that the end of this high-stakes dispute could be in sight, Cryptopolitan reported.
Garlinghouse Signals Potential Breakthrough in Ripple’s Favor
The legal dispute, which began in December 2020, revolves around the SEC’s allegations that Ripple's XRP token constitutes an unregistered security. The case has been closely watched by the cryptocurrency industry, as its outcome could set a significant precedent for how digital assets are regulated in the United States. On a recent social media post, Garlinghouse hinted that Ripple may be nearing a favorable conclusion, suggesting a light at the end of the tunnel for the company and its supporters.
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Also, cryptocurrency lawyer Fred Rispoli suggested this scenario: the SEC will agree to a settlement. This will happen in early 2025, and the amount of the agreement will be reduced to $125 million amid the upcoming changes in the SEC after Trump's victory.
The SEC’s initial lawsuit sought to prove that Ripple raised over $1.3 billion through the sale of XRP without registering it as a security. Due to court challenges, the price of XRP has fallen more than 10% since the beginning of the year, although major cryptocurrencies such as Bitcoin (BTC) and Solana (SOL) have jumped 79% and 96%, respectively.
Ripple, on the other hand, has consistently argued that XRP should be classified as a currency rather than a security, and therefore does not fall under the SEC’s jurisdiction. Over the years, the case has seen numerous legal twists, including partial victories for Ripple that have emboldened its defense.
Potential Industry Impacts and Future Regulatory Landscape
As the case edges closer to a potential resolution, industry insiders speculate on its implications for the broader crypto sector. Should Ripple prevail, it could pave the way for clearer regulatory guidelines on how digital assets are classified. This could, in turn, encourage innovation and investment in the sector, which has been hampered by regulatory uncertainty.
However, a settlement or court ruling in favor of the SEC could set a precedent that places many other cryptocurrencies under stricter regulatory scrutiny. For now, all eyes are on Ripple and the SEC as they move toward a potential agreement.
With over $1 billion at stake and years of legal fees accumulated, the end of this prolonged legal conflict could be a turning point for Ripple and its token holders.
Recall, earlier we wrote that a judge orders Ripple to consider an alternative settlement.
