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The year is coming to a close, and it’s essential to recap the most significant developments surrounding the prolonged legal battle between Ripple and the US Securities and Exchange Commission (SEC). As we look back at the events of 2024, one thing becomes clear: this has been a pivotal year for both parties.
It all began in summer 2023 when Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP to retail clients through centralized exchanges did not breach federal securities laws. This outcome was viewed by many within the industry as a significant victory for the company, with CEO Brad Garlinghouse and CLO Stuart Alderoty both expressing their satisfaction.
Fast forward to August 2024, when Judge Torres made another crucial decision in the case. She ordered Ripple to pay a $125 million civil penalty for violating federal securities laws through its institutional sales of XRP. While some may have seen this as a massive setback, it’s essential to note that this fine represents only a fraction of what the SEC initially sought – $2 billion.
The company has stated that it will pay the penalty in cash off its balance sheet. Many observers see this outcome as a positive development for Ripple, given the much lower financial burden compared to the initial demand.
One key factor that could potentially impact the future trajectory of the lawsuit is the presidential election held on November 5. The results saw Donald Trump emerge victorious, sparking jubilation among cryptocurrency enthusiasts who were already optimistic about his stance towards the industry. Trump’s promise to fire SEC Chairman Gary Gensler, in place since 2021, added fuel to the fire.
Although some doubted whether Trump could indeed remove Gensler due to the agency’s independent status, the chairman himself announced that he would resign in January next year. Additionally, President-elect Trump chose pro-crypto advocate Paul Atkins as his successor, a move that has filled crypto enthusiasts with hope and expectations for a more favorable resolution of this case.
The uncertainty surrounding the upcoming SEC leadership may have an impact on the outcome of the lawsuit against Ripple.
Source: cryptopotato.com
