Skip to main content

Ripple vs SEC – All information on the ongoing legal dispute

 


The legal dispute between the company Ripple Labs, which is responsible for the cryptocurrency XRP, and the US Securities and Exchange Commission is one of the most discussed topics in the crypto market and has a massive impact on the XRP token.


Ripple (XRP)

The XRP token has long been one of the most successful cryptocurrencies on the market and was at times in 3rd place in terms of market capitalization behind Bitcoin and Ethereum. But the legal battle caused the price of XRP to struggle in recent months. We provide the most important information on the Ripple vs SEC legal dispute.


What is Ripple (XRP)?

Ripple is a payment network that was specially developed for banks and aims to make international payment transactions between these institutions more efficient and cheaper. Ripple wants to simplify payment transactions between different currency areas and make payment corridors efficient.


The token of the Ripple payment network is the XRP. The XRP is not a "classic" cryptocurrency because it is issued and controlled centrally by Ripple Labs. Despite the lack of decentralization, XRP has become increasingly popular with investors in the past. The XRP was at times the number 3 on the crypto market behind the Bitcoin and Ethereum.


XRP price all time

Ripple (XRP) course since the beginning, source: Coinmarketcap

In the last few months and years, the XRP has fallen more and is now in the lower areas of the top 10. The network has grown significantly during this time and has entered into an extremely large number of new cooperations. The legal dispute with the SEC played a large part in the decline.


XRP course 12 months

Ripple (XRP) price in the last 12 months, source: Coinmarketcap

Now is a good opportunity to purchase the XRP token. Buy XRP easily on the Binance  and  Bitfinex exchanges !


What is the SEC?

The abbreviation SEC stands for "United States Securities and Exchange Commission". It is the Securities and Exchange Commission of the United States of America. The organization controls stock exchange trading in the United States. It was founded in 1934 in response to the massive stock market crash of 1929 that triggered a deep depression.


SEC

The SEC has 3,500 employees and 5 divisions. All companies that want to participate in the American capital market must register with the SEC . The authority also decides whether a company can use the New York Stock Exchange. Furthermore, the authority wants to ensure transparency for investors.


What is the reason for the dispute between Ripple and SEC?

The reason for the lawsuit between the company Ripple Labs and the SEC is the SEC's view that Ripple trades in securities. Ripple did this without a license. She does not see Ripple or the XRP token as a cryptocurrency. Ripple contradicts this point and claims that it does not sell any securities. The litigation revolves around this main question.


The SEC has 3 main allegations:


Ripple is said to have traded securities without a license. The company has not registered XRP as a security with the SEC.

Ripple is said to operate price manipulation. Founders Brad Garlinghouse and Christian Larsen are said to have specifically bought and sold XRP to increase trading volume.

Furthermore, Ripple is said to have paid for listings on exchanges.

How has the lawsuit gone so far?

The SEC filed the lawsuit on December 22, 2020. The course of the XRP then collapsed massively. The price fell as low as $0.25. The value then halved within a day.


In 2021, the tough legal battle had an extremely negative impact on the XRP price. While many cryptocurrencies rose massively in the first quarter of 2021, the rise in XRP was very limited. We summarize some of the milestones below:


01/07/2021 : After many exchanges removed XRP, Grayscale removed Ripple from the important Grayscale Digital Large Cup Fund. blockchain.com also later stopped trading in XRP. 

04/06/2021 : Ripple achieved a stage victory in which they forced the release of documents in which the SEC evaluated Bitcoin and Ethereum. If there are hardly any differences to XRP in these documents, this is an excellent point of defense for Ripple.

09/02/2021 : A leaked email traffic from the SEC revealed that the authority had neither the XRP nor the Bitcoin and Ethereum on a list of "prohibited holdings".

October 2021 : In the month of October, more and more information came out that a comparison between Ripple and the SEC was in the offing.

litigation

What is the current situation between Ripple and the SEC?

Ripple is currently using the “Fair Notice” point. In this defense strategy, Ripple and its attorneys state that in the 8 years since Ripple's existence from 2012 to the 2020 indictment, the SEC never gave a fair indication that XRP could be a security.


The SEC must now release documents that should prove this. The SEC tried to stop this. However, the court ordered the SEC to release those documents. This could further worsen the situation for the SEC, making a settlement more likely.


However, the indictment could also be dismissed entirely by the court. This would quickly end the litigation. But here, too, the SEC could appeal, further dragging out the process for months.  

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin
Post a Comment
Read more

Phishing attack on popular crypto sites tries to empty wallets

  Several major crypto sites such as Etherscan, CoinGecko, DeFi Pulse, and others report malicious pop-ups scammers use to try to trick users into connecting their MetaMask wallets. The phishing attack came from a domain displaying the Bored Ape Yacht Club (BAYC) logo. "We are investigating the root cause of this attack to fix the threat as soon as possible," CoinGecko founder Bobby Ong tweeted. The phishing attack appears to have been triggered by a malicious ad script from Coinzilla, a crypto ad network, according to CoinGecko. Etherscan also advises its users not to confirm any transactions that may appear on the website. The attackers attempted to use the hype around the “bored monkeys” non-fungible tokens (NFT) to gain access to the cryptocurrencies of unsuspecting website visitors. Although the websites affected by the scam attempt have reacted in the last few hours and deactivated the advertising pop-up, it is still recommended not to connect your MetaMask wallet to ne
Post a Comment
Read more

Seth Green falls victim to phishing - hackers steal NFTs

  Seth Green spoke up via Twitter yesterday afternoon. The actor is known to be involved in Web3 and NFTs. Criminals seem to have taken advantage of this, because according to Green, he was the victim of phishing. The artificial word is a composition of the English words "password harvesting" and "fishing". Exactly how the hackers managed to get hold of Green's account and fish the access data is still unknown. Typical methods to obtain victims' data are bogus emails and fake websites.   The loot includes 4 NFTs including Bored Ape number 8398 which is currently estimated to be worth at least $200,000. Theft is not an isolated case The fact that holders of high-priced NFTs are being targeted by phishing is not new. While many attacks target the masses, perpetrators will target their opera if they can be sure the loot is of high value. Green reaped statements of solidarity on social media and help from other victims on how to report the case. In the meantime,
Post a Comment
Read more