During an interview with CNBC, Monica Long, Ripple’s president, affirmed that Ripple intends to battle the ongoing SEC lawsuit relentlessly.
A Prolonged Battle: Three Years of the SEC Lawsuit
This lawsuit between Ripple and the SEC has endured for nearly three years, starting in 2020 when the SEC accused Ripple and its co-founders of violating securities laws. They allegedly sold their native XRP cryptocurrency of $1.3 billion worth without registering it as a security.
Ripple vehemently contested these allegations, contending that XRP should be viewed as a commodity, not a security. In a significant development, U.S. District Judge Analisa Torres ruled in July that XRP was not inherently a security.
Not Alone in the Struggle: Crypto Industry’s Woes with the SEC Lawsuit
Monica Long emphasized the importance of this ruling, stating that it opens doors for Ripple to expand its business in the U.S. and globally. Ripple is not alone in facing legal challenges; other crypto giants like Binance and Coinbase are also entangled in lawsuits with the SEC.
The cryptocurrency industry’s leaders have criticized the U.S. government’s regulatory approach due to the lack of clarity. Coinbase and Ripple have even hinted at the possibility of relocating outside the U.S. to escape the SEC’s stringent actions.
Landmark Ruling by Judge Torres: A Turning Point in the SEC Lawsuit
Shortly after Judge Torres’s ruling, U.S. District Judge Jed Rakoff, sitting in the Southern District of New York, rejected a similar approach to a different case. The SEC subsequently sought permission to file a motion for appeal to challenge Judge Torres’s landmark ruling.
Ripple’s legal team pointed out that the SEC’s desire to appeal largely stems from dissatisfaction with the judge’s decision that XRP does not qualify as a security when sold to retail investors.
A Regulatory Milestone: In-Principle Approval
Monica Long emphasized Ripple’s commitment to operating transparently and complying with regulators. In June, Ripple received in-principle approval from the Monetary Authority of Singapore to offer regulated crypto services.
Ripple announced its acquisition of crypto infrastructure startup Fortress Trust to bolster their commitment. This acquisition follows its purchase of Swiss crypto custody services firm Metaco in May. Long highlighted the importance of trust in the financial sector and Ripple’s status as a regulated financial services provider with licenses.
Operating with Integrity: Ripple’s Philosophy Amid the Lawsuit
In summary, Ripple is determined to confront the SEC’s legal challenge. They are particularly encouraged by Judge Torres’s recent ruling, which declared that XRP is not categorized as a security. This decision has boosted Ripple’s confidence in their ongoing battle.
The company’s overarching goal is to expand its presence on a global scale while remaining compliant with all relevant regulatory standards. They are dedicated to ensuring their operations align with legal requirements and industry norms.
This commitment to compliance and expansion is evident in Ripple’s recent acquisitions and strategic moves. These actions highlight their dedication to navigating the evolving cryptocurrency landscape while adhering to established regulations.
