Another Challenge for XRP
Ripple's Legal Woes Escalate as New Opponents Emerge: Not the Securities and Exchange Commission This Time
Ripple just can't seem to escape the limelight, and it's not always the kind of attention die-hard fans are craving. In a recent turn of events, Ripple's token found itself embroiled in a lawsuit initiated by the Oregon Attorney General (AG) against the US-based crypto exchange, Coinbase.
The chief legal officer of the state has accused XRP, SOL, ADA, LINK, UNI, and several other cryptos as investment contracts offered on Coinbase's platform, tagging them as "crypto securities."
The move by the Oregon AG has garnered concern from various corners, catching the eye of prominent legal commentator, Bill Morgan. He voiced his criticism, stressing that the chief legal officer of Oregon overlooked the fact that Coinbase stopped trading XRP following the US Securities and Exchange Commission's (SEC) lawsuit against Ripple in late 2020. Coinbase resumed trading XRP in the summer of 2023 after courts ruled out that secondary XRP sales weren't an offer of investment contracts.
"This is beyond ridiculous! A dystopian farce that no one could invent," Morgan added.
It's worth mentioning that Coinbase has faced similar troubles with the SEC before. Approaching two years ago, the SEC filed a 101-page lawsuit against the exchange, claiming various large-cap altcoins available on the platform, including SOL, ADA, and MATIC, violated securities laws by passing the Howey Test. XRP wasn't mentioned in the case, but the SEC notably softened its stance towards the crypto industry in the past few months, ending legal disputes with several digital asset entities. The case against Coinbase is one of the dismissed ones, yet the most high-profile one against Ripple remains on the radar, waiting for its final resolution.
Recent Developments in the Ripple vs. SEC Controversy
Ripple's CEO, Brad Garlinghouse, recently announced some good news in late March. He revealed that the SEC will withdraw its latest appeal, signifying the impending conclusion of the lengthy legal battle that's been ongoing for over four years. Ripple's chief legal officer, Stuart Alderoty, confirmed this news.
The Ripple community rejoiced at the news, considering it the end of a battle that's dragged on for years. However, the saga isn't quite over yet, as legal proceedings must still be completed before the case reaches its ultimate end.
Earlier in April, Ripple and the SEC filed a joint motion to halt their respective appeals temporarily for 60 days. Soon after, the U.S. Court of Appeals for the Second Circuit acknowledged and approved the submission. Even though this moves the case closer to a formal resolution, the SEC hasn't made a formal statement yet. In a recent development, attorney James Filan mentioned that the SEC is expected to submit a status report on its legal proceedings within 60 days of the ruling.
Although it might seem like the lawsuit's end is imminent, analysts have warned that its eventual resolution may not significantly impact XRP, as the market has already priced in the news.
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- Analysts have suggested that the market may have already priced in the news regarding the potential resolution of Ripple's ongoing legal battle with the SEC, implying that its eventual resolution may not significantly impact XRP's value.
- Trading of altcoins such as XRP, SOL, ADA, LINK, UNI, and several others have been deemed "crypto securities" by analysts, constituting a challenge for the crypto finance industry.
- In a recent development, Ripple's CEO, Brad Garlinghouse, announced that the SEC will withdraw its latest appeal, signifying the impending conclusion of the lengthy legal battle that began over four years ago.
- Despite the positive news, the legal proceedings must still be completed before the case reaches its ultimate end, as Ripple and the SEC have temporarily halted their appeals for 60 days.
- Oregon's Attorney General has accused several cryptos, including XRP, of being investment contracts offered on Coinbase's platform, causing concern among industry analysts and legal commentators.
- Analyst Bill Morgan has criticized the Oregon Attorney General for overlooking the fact that Coinbase stopped trading XRP following the SEC's lawsuit against Ripple in late 2020, questioning the legality of labeling XRP as a crypto security in this context.
