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Ripple v. SEC update as of September 22, 2023

Ripple v. SEC update as of September 22, 2023

As the cryptocurrency space still awaits the final conclusion of the widely publicized legal case in which the United States Securities and Exchange Commission (SEC) has accused Ripple of illegally selling XRP as unregistered securities, a few of its popular commentators have shared their two cents.

Specifically, answering a follower’s question regarding the possible timeline for Judge Analisa Torres to make a decision on the SEC’s appeal request, lawyer Bill Morgan said that her decision should be just around the corner, as he explained in an X post published on September 19.

“Won’t be long as the trial has not been stayed, and the parties will still be preparing for trial. If Judge Torres is not quick, it may be a bad sign for the SEC’s prospects of getting permission to appeal or at least of a stay of the proceedings during an interlocutory appeal.”

On NYDFS delisting

At the same time, Morgan commented on the removal of XRP from the list of approved cryptocurrencies by the New York Department of Financial Services (NYDFS), noting that “a court ruling by a judge that a crypto asset is not itself a security has less weight for other US regulators than a speech of a senior SEC official about another crypto that the SEC itself disowned as expressing its official position.”

Later on, the legal expert also decided to clear up some confusion surrounding the removal, arguing that this did not equal to XRP ban and that it did not imply an inability of approval “for custody or sale by a holder of a Bitlicence” but that it “adds to the regulatory burden,” as he specified in an X post shared on September 20.

“Who in NY is going to use XRP for its intended use for which it is functionally capable, which is seconds fast payments if it has to go through an extra and time consuming and quite unnecessary extra regulatory layer.”

Interestingly, as Morgan has also noted, one of Ripple’s subsidiaries, i.e. Ripple Marktes DE LLC, remains registered as holding a virtual currency license since June 2016. However, “it is what it can do with it given the endless XRP stultification campaign of the SEC.” 

Ripple still winning

He also stressed that:

“Ripple is seemingly winning the regularity certainty battles overall globally and in the USA. The only real problem anywhere for Ripple is that the SEC says sales of XRP by Ripple need to also be registered under the Securities Act, and Judge Torres agrees in respect of Ripple’s institutional sales. Once the reactionary SEC is overcome, Ripple is in great shape everywhere.”

Meanwhile, legal expert and amicus curiae for Ripple, John E. Deaton, also criticized the delisting of XRP despite the court declaring it was not a security, even if Ripple sells it on exchanges, sarcastically commenting that “yea, this move isn’t political or punitive in nature.

As things stand, the XRP token, which has been front and center of the ongoing legal battle, was at press time changing hands at the price of $0.5076. This represents a decrease of 1.11% in the last 24 hours, a 1% gain across the previous seven days while being down 2.61% on its monthly chart, according to the latest data.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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