Despite the waiver of the lawsuit, the US Securities and Exchange Commission is still looking to crack down on Ripple (XRP). In this cryptocurrency post, we examine the SEC’s plan to continue its fight with the SEC.
The US SEC remains committed to opposing XRP’s regulatory status.
According to Insider, the SEC confirmed the development amid the regulator’s dismissal of allegations against Ripple executives.
Dropping the lawsuit means the April 2024 trial will not happen again.
Fox Business journalist Eleanor Trett has revealed that although the US regulator dismissed the charges against Ripple executives, they are still pursuing other aspects of the case.
In a recent tweet, Tert revealed that the US SEC has no plans to release various aspects of the case between itself and Ripple Labs. In particular, the classification of all offers and sales of XRP as securities are the main charges. Tartt cited insiders at the SEC as the source of his information.
“It looks like [SEC Chairman] Gary Gensler won’t go down without a fight,” a Fox Business reporter commented.
On Friday, the SEC dropped charges against Ripple CEO Bradley Garlinghouse and Ripple Chairman Chris Larsen. Dropping the lawsuit means the April 2024 trial won’t happen again.
This triumphant development has led some members of the XRP community to theorize that the long-running lawsuit may soon come to an end. Nevertheless, the SEC appears to be bracing itself for more legal battles.
In case you didn’t know, the US regulator launched a legal action in December 2020. He then accused Larsen and Garlinghouse of conducting an illegal securities offering involving XRP. The regulator alleged that two Ripple executives instigated violations of federal securities regulations by participating in XRP transactions.
However, on July 13, 2023, US District Judge Annalisa Torres ruled that Ripple’s sale of XRP to retail and other distribution is not an investment contract. However, the court found that Ripple only violated securities laws when it sold XRP to institutional investors.
Dissatisfied with the ruling, the SEC filed an interim appeal challenging the court’s decision. Unfortunately, the US court denied the request and ordered the SEC to await the resolution of all pending charges.
After the decision of the Securities and Exchange Commission to reject the charges against the Ripple managers, the remaining issue is the stage of compensation. This matter must be heard before the court can issue its final judgment.