The Ripple vs. SEC legal battle, which has spanned over two years, could be nearing its conclusion, according to insights from a former U.S. Securities and Exchange Commission (SEC) director.
Marc Fagel, a former Regional Director at the SEC, has suggested that a judgment on the XRP lawsuit is expected within days.
As the outcome hangs in the balance, the Ripple community eagerly awaits the verdict, speculating on the potential impact on the XRP price.
In late 2020, the SEC filed a lawsuit against Ripple, its CEO Brad Garlinghouse, and chairman Chris Larsen, alleging that they illegally raised more than $1.2 billion through the unregistered sale of XRP. The case has attracted significant attention within the crypto industry and beyond.
Recently, the release of the William Hinman materials, in which Hinman’s speech suggested that Ethereum’s native token, Ether, was not a security, added further complexity to the Ripple case. Ripple’s legal team argues that this created confusion, leading them to believe that XRP was also not a security.
Marc Fagel, offering his perspective, highlighted that Ripple’s case differs from other recent SEC enforcement actions. He opined that the judge is unlikely to address the Hinman documents or the secondary market trading matter. However, the emails exchanged between parties may be referenced in relation to the individual defendants’ liability.
The outcome of the Ripple vs. SEC lawsuit carries significant implications for the broader crypto industry, extending beyond XRP.
If Ripple faces a defeat, it could impact mainstream adoption, embolden the SEC to pursue similar cases, create market turbulence, and potentially lead to crypto startups seeking more crypto-friendly jurisdictions outside the United States.