The ongoing case between Ripple Labs and the United States Securities and Exchange Commission is currently in its trial phase. This stage of the lawsuit is typically where a resolution is expected, but the timeline for the conclusion remains uncertain. Recent developments have unfolded as of June 27th, shedding light on the progress of the case.
One significant development in the recent weeks was the Securities and Exchange Commission’s decision to lower its demand for a fine. The initial request for a fine of $2 billion was reduced to $102.6 million. The SEC justified this adjustment by pointing out the ratio of the penalty to the gross profit of the violative conduct. The substantial decrease in the fine amount was met with Ripple’s legal team advocating for an even lower penalty of no more than $10 million.
Another noteworthy event was the resignation of David Hirsh, the SEC’s Chief of the Crypto Asset and Cyber Unit. This departure adds another layer of complexity to the legal battle between Ripple and the SEC. Ripple is also facing legal challenges in California, where CEO Brad Garlinghouse is a defendant in a civil lawsuit.
Despite the legal challenges, there have been positive developments for Ripple. A judge in California dismissed all allegations that Ripple violated federal securities law. Additionally, a ruling in New York confirmed that XRP is not considered a security. Both Stuart Alderoty, Ripple’s legal chief, and Brad Garlinghouse have taken strong stances against the SEC’s chairman, Gary Gensler.
Brad Garlinghouse responded sharply to Gensler’s remarks about crypto executives potentially facing legal consequences. Garlinghouse dismissed Gensler’s comments as “absolute nonsense” and criticized his handling of regulatory matters in the crypto space. Garlinghouse suggested that Gensler’s actions could negatively impact President Biden’s reelection prospects.
The legal battle between Ripple Labs and the SEC continues to unfold with various twists and turns. The recent developments highlight the complex nature of the case and the highly charged dynamics between the involved parties. As the trial progresses, the outcome remains uncertain, and both Ripple and the SEC are navigating uncharted territory in the realm of crypto regulations.