The SEC v. Ripple Lawsuit: Latest Development Is a Boon for XRP

Ripple - The SEC v. Ripple Lawsuit: Latest Development Is a Boon for XRP

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Ripple (XRP-USD) has seen better days. You can blame it on the U.S. Securities and Exchange (SEC) court case that has been dogging it since last year. However, a positive resolution could be around the corner with some updates.

In December 2021, the SEC filed a case against Ripple Labs, accusing the company of selling XRP as unauthorized security — which they were not allowed to do by law. The regulatory body in the U.S. alleges that Ripple Labs brought in a billion-dollar turnover from an unregistered security offering. Due to this development, Ripple has faced major hits leading to a sharp dip in price. However, the case results show investors believe there is light at the end of the tunnel.

A U.S. Magistrate Judge has denied the SEC’s motion to reconsider the decision on deliberate process privilege (DPP). The SEC said it would release an email draft of the Ethereum (ETH-USD) speech given by former top SEC official William Hinman among other documents. In June 2018, the SEC official dismissed claims that Ether was a security. The SEC took the plea that these documents are protected under DPP, so it has the authority not to release them. The judge ruled that the privilege would not shield the agency’s staff members because these are their personal views.

Ripple has won a significant victory in its battle with the SEC, which will have lasting effects on blockchain technology. If it ends up winning the entire case, it will change the dynamics of the industry.

Will Ripple Make a Comeback in 2022?

Ripple is a decentralized payment network, meaning there is no central authority like a bank or government controlling the network. This makes XRP an attractive option for companies who want to avoid costly fees and wait times when transferring money internationally.

At the moment, Ripple’s fortunes are deeply intertwined with the SEC v. XRP court case. If a settlement occurs in favor of Ripple, it will have a major impact on the cryptocurrency and the broader market. This has never before been seen. A win over a government regulator is unheard of at this stage. The proceedings of the case have boded well so far. Hence, you can make a reasonable assessment regarding a favorable resolution. However, when you buy any cryptocurrency, let alone Ripple, you take on a certain amount of risk.

Cryptocurrencies are a risky bet, with many crypto experts warning investors that the sector should not be treated as a long-term investment. Despite this, many people have been investing in cryptocurrencies due to their potential for exponential growth.

Today’s market is pretty negative. It is important to monitor your investments accurately. I’d only really consider investing in a highly speculative asset if you could cushion the position with other types of investments. Therefore, investing anything above 5% in today’s bear market becomes very risky.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/the-sec-v-ripple-lawsuit-latest-development-is-a-boon-for-xrp/.

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