Ripple and the US financial regulator SEC have been fighting in the US Supreme Court for more than two years. The world is watching with eagle eyes. Because the outcome of this process will be groundbreaking – for the entire US industry. In December 2022, both sides made their pleadings. The judge’s verdict is now awaited. Some are speculating on the first half of this year, April or June.
If the SEC wins, it could be Ripple first – and then all the so-called Altcoins, of which there are now over 4,000. The US financial regulator accuses Ripple of its token being a security. The company should have registered him with the SEC. The $1.4 billion sale was illegal.
Ripple defends itself against allegations
In 2022, the SEC launched lawsuits against other crypto companies, such as Binance and Uniswap, with the same allegation. In a recent New York interview, agency chief Gary Gensler affirmed: “Everything but Bitcoin” are securities. If his view prevails, the industry in the US faces difficult times. Heavy fines and bans threaten – a wave of lawsuits and bankruptcies.
Ripple defends itself against this assessment and accuses the SEC of “embarrassing behavior” and “abuse of power”. Ripple’s lawyer, Stuart Alderoty, has recently been very confident of victory: The SEC has only been able to win one of five cases in its history before the Supreme Court. And last year, Ripple already achieved an important partial success.
The SEC has lost 4 of its last 5 cases in the Supreme Court, thanks to the few that had the courage and resources to fight back against the SEC’s bullying and clinging to stretch legal positions that were not faithful to the law.
The SEC had to hand over some important and previously sealed documents to Ripple, the so-called “Hinman files”. William Hinman was the SEC’s director in 2018. At the time, he stated in a speech that “Ethereum is sufficiently decentralized” not to be a security. Ripple claims a similar position. So far, the documents may not be presented to the public. But Ripple CEO Brad Garlinghouse says: “When the truth comes out, you will be shocked at how shameful their behavior is in this case.”
If Ripple wins, the entire crypto industry in the US should breathe a sigh of relief. Analysts speculate that the value of the token could explode, to over a US dollar. So far, the company can only conduct its business to a limited extent due to the ongoing lawsuit. “We [hätten] this unbelievable business opportunity in the USA – this is an evergreen for us,” said the lawyer, Stuart Alderoty, in an interview.
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