Important Ripple (XRP) v. SEC Lawsuit Update Sep 29th

Despite Ripple’s partial victory in July, the legal battle between the company and the US Securities and Exchange Commission (SEC) continues at full speed. 

In this article, we will outline the latest essential details surrounding the lawsuit as well as Gary Gensler’s (Chairman of the regulator) most recent reaction to the dispute.

The Battle Goes on

The lawsuit between the two entities dates back to December 2020 when the SEC sued Ripple, alleging it of breaching securities laws when selling XRP to retail investors. The blockchain enterprise, which endured several other accusations in the following years and spent approximately $200 million to persist the fight, won a major (yet partial) victory in mid-July.

Back then, a US court determined that the sale of XRP did not constitute an offer of investment contracts, giving Ripple hopes that a decisive win was just around the corner. Somewhat expectedly, the ruling positively affected XRP’s price, which skyrocketed by over 70%.

However, the SEC was unhappy with the decision and formally appealed it at the beginning of September. The ongoing uncertainty and the agency’s actions have pushed XRP down, currently hovering at around $0.50 (CoinGecko’s data).

As CryptoPotato recently reported, Ripple hired renowned lawyers and professionals who will represent the organization and its CEO – Brad Garlinghouse. Such examples are Former Assistant United States Attorney – Rahul Mukhi – and Lauren Belive. 

The latter, who has worked at the White House under President Barack Obama, was appointed the Head of US Public Policy and Government at Ripple. 

“My role will be to lead our engagement in Washington and nationally, ensuring that we are not only part of the conversation but driving it forward with clarity and purpose,” she said.

Gary Gensler’s Response (Silence)

The Chairman of the US SEC – Gary Gensler – took part in a congressional testimony earlier this week, where he reiterated his criticism of the digital asset sector. He once again described individuals and companies operating in the industry as “hucksters,” accusing them of misusing customer funds. 

Rep. Stephen Lynch also questioned Gensler about the Commission’s legal battle against Ripple. The American was reluctant to provide specific details on the matter, simply reminding the ongoing status of the dispute.

This is not the first time he has remained silent when asked rather uncomfortable questions. In April this year, Gensler avoided a direct answer when the House Financial Services Committee wanted to know whether the SEC considers ETH a security or a commodity.