Ripple is on the list of the top traded crypto assets, despite its troubles with SEC regulator. In this article, we will explain:
- what happened between Ripple and SEC;
- how long the court process lasts:
- the latest news from the XRP vs SEC judicial proceedings.
Regulation has not yet reached the cryptocurrency market, but officials in different countries are trying to correct this oversight. However, so far, their efforts did not bring fruit. Of course, the main regulator in the world economy is the US Securities and Exchange Commission (SEC). Although formally, its jurisdiction extends only to the USA, its actual effect spreads to all other countries worldwide.
Timeline of events
On December 22, 2020, the SEC filed an official lawsuit against Ripple. The regulator accuses the company and its management of violating securities law. SEC officials consider the tokenized XRP as security that, in their opinion, has not passed all the necessary registration procedures and, therefore, cannot be allowed to be sold on global markets traded in the XRP to USDT pair.
A preliminary hearing on the XRP SEC lawsuit was held on February 22, 2021. It became clear from the pre-trial hearings of the general public that the regulator did not warn the exchange about the possible status of the XRP token.
Twelve days after the XRP SEC preliminary hearing, Ripple co-founder Chris Larsen filed a counterclaim asking the SEC to dismiss the case against him. Larsen said that the regulator could not prove the fact of any willful misconduct. The next day, March 5, 2021, Ripple accused the SEC of abuse of power and called the XRP token “money”. Notice that conventional money is not the SEC’s area of responsibility.
June 8, 2021. For the first time, the SEC threatened the court with the consequences of a potentially wrong decision in the case against Ripple. The regulator believes that an incorrect decision can create a dangerous precedent for the regulator.
Recent news
XRP vs SEC judicial proceedings have been going on for almost three years. Recently, on September 18, 2022, Ripple’s chief legal adviser Stuart Alderoty stated that during all this time, the regulator was unable to prove that XRP complies with any point of the Howey test. For this reason, Ripple requires the case to be closed. Amid this XRP SEC news the token rate rose to 40 cents.
Реклама
