SEC Lawsuit against Ripple Continues
Many XRP supporters hope that now that Gary Gensler has been sworn in as the official Chairman of the Securities and Exchange Commission (SEC), the SEC and Ripple will reconsider the lawsuit’s basis and re-discuss it.
However, because Gensler has shown no signs of withdrawing the $1.3 billion case against Ripple, it appears that it will go forward as planned.
The SEC made a court filing with Magistrate Judge Sarah Netburn, the agency’s first court filing since Gensler took over as Chairman.
The SEC filed an appeal with Torres, requesting that the court stop Ripple from accessing the SEC’s internal emails and messages. This suggests that the SEC will go ahead with its case against Ripple.
The department claims that the blockchain company and its top executives violated securities laws by selling XRP, despite the digital asset’s lack of registration as a security in the United States.
The SEC accused Ripple of bullying the organisation over discovery in a court filing.
The conflict between the SEC and Ripple has escalated to the point that several XRP holders have filed a motion to interfere in the case as a third-party defendant.
John E. Deaton filed the action on behalf of 12,600 XRP holders.
The result of the case would be significant for the crypto industry because it may affect how the SEC regulates other digital assets in the future.
While regulators have confirmed that Bitcoin and Ether are not securities, they have not granted the same exemption to other tokens, raising possible SEC litigation against hundreds of other cryptocurrencies.
Many industry leaders have hoped that Gary Gensler, who has prior experience teaching crypto and blockchain courses at MIT, would be more crypto-friendly and provide better regulatory clarification for the digital asset class.