In a turning point in the ongoing XRP case, the US Securities and Exchange Commission (SEC) and Ripple Labs will meet for a critical discussion on November 9. Although the accusations against Ripple’s top executives have been dismissed, broader issues remain unresolved, making this meeting a crucial determinant for the future of crypto assets in the United States.
Risks of the November 9 meeting
Emphasizing the importance of the upcoming meeting, the SEC revealed a date that is expected to provide more clarity on the direction the legal fight will take. The SEC announced this very important “meeting and deliberation session” in its latest correspondence to Judge Analisa Torres. The essence of this meeting lies in the aim of determining the road map of the case. Discussions in this session are expected to revolve around the potential briefing schedule on the pressing issue at hand. What is this matter? It is a question of appropriate remedies needed to address Ripple’s alleged Section 5 violations regarding institutional sales of XRP.
For those who don’t know, Section 5 of the Securities Act of 1933 requires securities to be registered with the SEC before they can be marketed to the public. This also includes institutional investors. The million dollar question (probably literally) is: Does XRP fall within the definition of a security under this statute? If positive, has Ripple exceeded its limits? The outcome of this case is poised to leave a lasting impact, setting a benchmark for how crypto assets will be perceived and regulated in the United States.
Possible consequences and their impact on Ripple
As the drama of the case unfolds, the SEC seems inclined to seek a solution that could result in a hefty settlement. If such a scenario occurs, Ripple may find itself under a huge financial burden. It is estimated that this amount can reach millions of dollars. This amount, combined with the ongoing legal costs resulting from this protracted legal confrontation, could potentially deal a blow to Ripple’s resources. However, it is very important to approach this issue from a balanced perspective. In their communications with the community, Ripple’s senior executives underlined that the latest developments in the case do not essentially indicate an imminent settlement. Nevertheless, the possibility of such an outcome remains and cannot be completely ruled out.
Ripple’s victories amid legal battle
Amid intense legal wrangling, Ripple has achieved several notable victories since the ruling on July 13. These successes have revived the community’s faith in the crypto asset. In a decisive move, Judge Torres ruled that programmatic sales of XRP on secondary trading platforms did not comply with securities laws. This decision was effective in shaping the image of XRP. By clarifying its status, XRP regained its appeal, making waves in the community and once again attracting the attention of crypto exchanges and service providers. This positive momentum is evident and stands as a testament to the resilience of Ripple and its underlying asset.
Moreover, another important relief for the company occurred yesterday. cryptokoin.com As we reported, the charges against founders Brad Garlinghouse and Chris Larsen were dismissed. With this decision, the company’s leaders were freed from the shadow of legal proceedings, allowing them to run Ripple with renewed vigor. As we approach the November 9 meeting, the entire crypto community is watching with bated breath. The stakes are high and the consequences could reshape the crypto assets landscape in the US for years to come.
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