The ongoing legal battle between Ripple Labs and the United States Securities and Exchange Commission has entered the trial phase. This phase is crucial in resolving the lawsuit, but the end date remains uncertain.
A significant development in recent weeks was the SEC’s decision to reduce its fine demand from $2 billion to $102.6 million. The Commission justified this adjustment by comparing the penalty ratio to Ripple’s gross profits. Ripple’s legal team, however, advocated for a much lower penalty of $10 million.
In another turn of events, David Hirsh, the SEC’s Chief of the Crypto Asset and Cyber Unit, resigned during the course of the trial. His departure adds a new layer of complexity to the case.
Apart from the SEC case, Ripple is also facing legal challenges in California, where CEO Brad Garlinghouse is a defendant in a civil lawsuit. Nevertheless, recent developments in the case have been favorable for Ripple. The judge in California dismissed allegations of federal securities law violations, while a New York ruling confirmed that XRP is not considered a security.
Both Ripple’s legal chief, Stuart Alderoty, and CEO Brad Garlinghouse have taken firm stances against the SEC’s chairman, Gary Gensler. Garlinghouse criticized Gensler’s remarks about crypto, calling them “absolute nonsense.” He questioned Gensler’s actions and lack of involvement in key industry events, suggesting that Gensler’s leadership could have negative implications.
The Ripple Labs vs. SEC case continues to evolve, with twists and turns that keep the industry on edge. As the trial progresses and new developments unfold, the future of Ripple and the regulatory landscape for cryptocurrencies remain uncertain. Stay tuned for more updates on this high-profile legal battle.
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