Ripple v. SEC Yearly Recap: A Review of Developments and Turning Points in the Ongoing Dispute
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Ripple v. SEC Yearly Recap: Was 2024 the Most Important Year?
The 2022 edition of the Ripple v. SEC case was a year filled with various developments, twists and turns. In retrospect, it may be reasonable to view it as one of the most crucial moments in the history of crypto regulatory battles.
At its core, the suit centers around the US Securities and Exchange Commission (SEC) accusing Ripple of engaging in an unregistered securities offering by selling its XRP token. The agency seeks a substantial fine, amounting to $2 billion, while Ripple counters with a proposal of merely $10 million.
In 2023, Judge Analisa Torres delivered her verdict, finding that the programmatic sales of XRP by the company’s institutional clients through centralized exchanges did not breach the applicable rules. However, in a surprising turn of events, she ordered Ripple to pay a $125 million civil penalty for its institutional sales.
The decision was welcomed as a major success for Ripple by many industry stakeholders, considering the massive sum initially requested by the SEC. The company’s executives also expressed their satisfaction with the outcome, stating that they respect the court’s ruling and will settle the fine out of pocket, without dipping into their balance sheet.
However, things took an unexpected turn when the SEC officially appealed Judge Torres’ decision in October. This led to a fresh wave of uncertainty, as the case entered a new phase characterized by filings and a briefing process.
A notable development that unfolded towards the end of 2022 was the US presidential election. Donald Trump emerged victorious, prompting excitement among some crypto enthusiasts due to his promise to fire SEC Chairman Gary Gensler upon taking office. The newly elected president chose Paul Atkins, an ardent supporter of the cryptocurrency industry, as his successor.
As a result, proponents of Ripple and its native token XRP have become optimistic that the Commission’s future leadership will adopt a more crypto-friendly stance and potentially push the case against Ripple to a favorable resolution in the near future.
It is worth noting that while Trump did not officially fire Gensler during his presidency, he eventually announced his resignation in January 2023.
Source: cryptopotato.com
