Has the SEC's case against Ripple been settled?

According to rumors, Ripple's long-running legal battle with the US Securities and Exchange Commission has finally resulted in a settlement.

As the court case – which carries all the signs of a test case against cryptocurrencies – continues to wind down, unsubstantiated rumours have surfaced from both camps that the parties have struck an agreement.

After finance officers labeled Ripple an unregistered securities before commencing action early this year, the company and its native XRP cryptocurrency have labored under the weight of the SEC claims.

The cryptocurrency, which is extremely popular in both the United States and the United Kingdom, had been steadily rising until the charges arose near the end of 2020. Before the SEC made its emotions known on December 22, 2020, XRP was looking great at approximately 70 cents per unit. It had dropped to 25 degrees in less than 24 hours.

XRP Daily chart; Source: Coinmarrketcap

Surprisingly, the price of XRP has stood the test of time, now trading at $0.74, after reaching a high of $1.84 in April last year. It reached an all-time high of $3.12 in January 2018.

The SEC filed a complaint in the US District Court for the Southern District of New York against Brad Garlinghouse and co-founder Chris Larsen, alleging that sales of $1.3 billion in XRP by Ripple and its officials from 2013 through 2020 constituted a continuous unregistered offering of securities. According to the authority, the seven years constituted a breach of Section 5 of the 1933 Securities Act.

Garlinghouse retaliated quickly, with his attorneys writing a letter to Federal Judge Analisa Torres, claiming that the case was "regulatory overreach, plain and simple," before noting that the "SEC's charges fail for a variety of reasons."

Brad Garlinghouse joined Liz Claman and Charles Gasparino on Fox Business yesterday to discuss Federal Reserve Chairman Jerome Powell's recent statements on how cryptocurrencies should be addressed. His most fascinating remarks, though, came near the conclusion of the conversation, when he was asked about Ripple's SEC lawsuit.

Before giving an update, Garlinghouse referenced to an interview the day before in which SEC Chairman Gary Gensler predicted that the Commission will "lose some cases" in attempting to create a legal distinction between currencies and security tokens.

"The fast update is that expert testimony, expert dispositions, and other matters were completed on Monday, and the case is still moving forward," he stated.

"We're anticipating some rulings from the court sooner rather than later as it relates to a few of cases before the court, but look, it's moving slowly."

"I believe Gary Gensler has maintained the idea that cryptocurrency is the Wild West. It isn't the Wild West here. Do you think there are any terrible actors? Yes, there are poor performers in every scene."

Garlinghouse's remarks, when combined with Gary Gensler's admission that the SEC expects to lose some cases, might be read as a sign that the case is likely to be concluded.

It remains to be seen if it rules in crypto's favor, but the whispering winds of fortune appear to be filling Ripple's sails.

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