Despite Ripple scoring major victories against the US SEC over the ‘securities’ status of its XRP sales, there are some overhangs in this case. Analysts have been specifically paying close attention to the ongoing battle involving the institutional sales of XRP. The decision for the same is likely to come by April 2024.

Key Updates in Ripple Lawsuit

Ripple and the U.S. SEC have been recently contesting over access to financial statements and the discovery of the XRP sales.

The SEC asked the court to make Ripple provide certain information, like audited financial statements for 2022-2023, contracts for selling or transferring XRP to non-employee parties, and details on XRP sales money received after the lawsuit started.

In the recent update on the SEC’s case against Ripple Labs, Ripple disagreed with the SEC’s request for audited financial statements, contracts related to XRP sales after the lawsuit, and information about the money from XRP Institutional Sales. Ripple filed its opposition on January 19.

Later, on Tuesday, January 23, the SEC responded to support its request. The SEC argues that its requests for information about remedies are proper and not too late. It also says that courts usually consider facts after the lawsuit is filed when dealing with violations of securities law.

The SEC’s stronger legal position against Ripple has important consequences for both the company and the overall cryptocurrency market. The way Ripple defends itself and the result of this case might establish a standard for how U.S. securities laws regulate and examine other cryptocurrency companies.

Developments Around XRP ETF

Post the launch of spot Bitcoin ETF earlier this month, there have been speculations sparking about a potential spot XRP ETF. Earlier reports suggested BlackRock to be pursuing this, however, the asset management giant has denied any immediate plans in this direction.

However, amid the ongoing Ripple vs SEC battle, market analysts have expressed little confidence in a successful approval of a spot XRP ETF.

Experts suggest that the current legal battle between the United States Securities and Exchange Commission (SEC) and Ripple, coupled with the absence of an approved XRP futures ETF, diminishes the likelihood of approval for a spot XRP ETF.

Townsend Lansing, CoinShares’ head of product, clarified that obtaining approval for an XRP ETF would be challenging unless the SEC is compelled to acknowledge or agree that XRP is not a security.

What Will the Ripple vs SEC Lawsuit Conclude?

Considering the long historical timeline of the Ripple vs SEC battle, it’s difficult to predict accurately the conclusion of the lawsuit. However, market experts and analysts expect a resolution by the second/third quarter of 2024 in the Ripple lawsuit.

Crypto law expert Attorney John Deaton suggests that the resolution of the Ripple case might be significantly impacted by the SEC’s legal dispute with Coinbase. Deaton believes that if Coinbase achieves a positive outcome in its case, it could lead to a settlement in the Ripple lawsuit. In October, Coinbase filed a motion to dismiss the SEC’s charges, contesting the categorization of traded crypto assets as investment contracts and challenging the SEC’s authority to regulate the crypto industry.

The post Important Updates of Ripple (XRP) Lawsuit: When It Will End? appeared first on CoinGape.

---

Filed under: News - @ January 1, 1970 12:00 am