Ripple's Lawyer Explains that the SEC Lawsuit is Not Over Yet! Why This Might Pressure XRP

The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has been one of the most high-profile cases in the cryptocurrency world. In April 2024, Ripple CEO Brad Garlinghouse publicly stated that the SEC had agreed to drop the case against the company, hinting at a potential resolution in Ripple's favor. 

However, despite this announcement, the situation is far from over. A key pro-XRP lawyer recently warned that the lawsuit is not officially finished, and there are still several steps left in the legal process. This continued uncertainty could still put pressure on XRP’s price and its future within the U.S. regulatory environment.

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Ripple's Legal Fight: Not Over Yet

Despite Garlinghouse's statement, the SEC has not formally confirmed that it is ending its lawsuit against Ripple. This lack of official confirmation has left many members of the XRP community feeling uncertain, especially as they had hoped for a final resolution. Pro-XRP legal experts, including Ripple's Chief Legal Officer, Stuart Alderoty, have pointed out that the legal steps needed to officially conclude the lawsuit still need to take place.

The uncertainty surrounding the lawsuit continues to weigh heavily on XRP, as investors and traders in the cryptocurrency market are wary of the legal outcome. Even though many had celebrated the potential win, Ripple's legal team has emphasized that the case is not over until all the required steps have been completed in court. This ongoing pressure keeps XRP’s price volatility in play and contributes to the uncertainty that surrounds its future.

The SEC’s Impact on Ripple and the Crypto Market

The case between Ripple and the SEC revolves around whether XRP should be classified as a security. The SEC argued that the company sold XRP tokens as unregistered securities, but Ripple has consistently denied this claim, asserting that it operates within the bounds of U.S. law. 

This legal uncertainty has had a significant impact on Ripple’s business and the broader crypto market, as it raised concerns about how other cryptocurrencies would be treated under the same scrutiny.

Ripple has repeatedly argued that the SEC’s actions against the company were based on unclear and outdated laws surrounding digital assets in the United States. 

Stuart Alderoty, Ripple’s CLO, expressed frustration over the SEC’s approach, explaining that the regulator couldn’t take legal action without first establishing clear guidelines for crypto. Since there have been no definitive laws around cryptocurrency, Ripple’s legal team maintains that the SEC’s case against them was unfounded from the beginning.

The Ripple Effect on XRP

The legal challenges have created an environment of uncertainty for XRP holders. As the case dragged on, the price of XRP fluctuated dramatically. Even with hopes of a favorable resolution, the ongoing court proceedings mean that the token’s future is still up in the air. In fact, Ripple has announced that it will stop publishing quarterly market reports on XRP holdings, after the SEC used Ripple’s transparency efforts against them during the lawsuit.

Ripple's quarterly reports were originally intended to provide transparency regarding its holdings of XRP, a move that was meant to assure investors. However, the SEC turned these reports against Ripple, using them to further its case that Ripple was operating as an unregistered securities exchange. As a result, Ripple’s decision to stop publishing such reports signals that the company is reconsidering how it approaches transparency and investor relations moving forward.

Ripple’s Focus Moving Forward

Despite the ongoing legal battle, Ripple’s leadership has indicated a shift in priorities. The company has pivoted its focus to pushing for clear regulatory guidelines for the crypto industry. 

Ripple's CEO Brad Garlinghouse has stated that the company wants to move forward with its business operations, working closely with Congress to help create fair and clear rules for the cryptocurrency market. Ripple's mission is to protect consumers, keep out bad actors, and foster innovation within the blockchain industry.

This shift is seen as a positive for Ripple, as it signals that the company is actively seeking to work within the legal framework of the U.S., regardless of the ongoing lawsuit. Ripple’s ability to innovate and adapt while pushing for better clarity in regulation may prove crucial in shaping its long-term success.

Why This Might Pressure XRP

Although Ripple is focused on business and advocacy, the legal uncertainty surrounding XRP continues to create challenges. XRP’s market value and growth are tightly linked to the outcome of the SEC lawsuit. As long as the lawsuit remains unresolved, it may keep XRP investors on edge, leading to continued price volatility. The lack of clear legal status for XRP under U.S. law means that it could be subject to future regulatory challenges, whether from the SEC or other agencies.

Additionally, the broader crypto community is also affected by this uncertainty. Regulatory clarity and a favorable outcome for Ripple could set a positive precedent for other cryptocurrencies, boosting investor confidence. However, any unfavorable ruling for Ripple could result in broader implications for the market, as it might lead to more stringent regulations for all cryptocurrencies.

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What’s Next for XRP and Ripple?

As the legal battle drags on, XRP holders and the broader crypto community are left waiting for a final resolution. While Ripple continues to advocate for clearer guidelines and fair regulations, the SEC lawsuit remains a significant factor in XRP’s price movements.

Until the legal process concludes and Ripple either reaches a settlement or a final court decision, XRP investors will need to stay informed about potential developments. The ongoing uncertainty means that XRP's price could continue to fluctuate based on legal updates and market sentiment.

FAQ

Is Ripple's lawsuit with the SEC really over?

No, Ripple’s lawsuit with the SEC is not over yet. While Ripple CEO Brad Garlinghouse suggested the SEC might drop the case, legal steps still need to happen before the case is officially concluded.

How does the SEC lawsuit impact the price of XRP?

The ongoing lawsuit creates uncertainty for XRP, causing significant price volatility. The final outcome of the case could heavily influence XRP’s future market performance and regulatory status.

What is Ripple's strategy moving forward despite the lawsuit?

Ripple aims to focus on business growth, work with Congress for clearer crypto regulations, and protect consumers. Ripple also plans to stop publishing quarterly XRP reports due to SEC challenges.