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The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is approaching a decision point. Initially seeking $2 billion in fines, the SEC has reduced its demand to $102 million. However, Ripple has not accepted this lower offer, indicating ongoing disagreements.
Legal experts are unsure if the case will end with a settlement or a court decision. As political changes loom and other big crypto firms clash with the SEC, the outcome is highly anticipated.
SEC’s Offer and Ripple’s Rejection
Fifteen days ago, the SEC proposed a settlement of $102 million to Ripple, a drastic reduction from the initial $2 billion demand. Despite expectations for Ripple to accept the offer quickly, the company has decided to continue its fight. This decision stems from a long history of what Ripple and the XRP community see as unfair treatment and harassment by the SEC.
The SEC’s original mission was to protect retail investors, but its actions against XRP have led to widespread criticism. Ripple’s legal battle, which has cost over $200 million, is seen as a fight for the entire crypto industry.
The hope is that Judge Torres will rule in Ripple’s favor, setting a precedent that government agencies cannot act with impunity.
Judge Torres’s Upcoming Verdict
Judge Torres is expected to make a crucial decision soon, which could be influenced by the SEC’s recent losses in other crypto-related cases. A favorable outcome for Ripple would not only clear the company’s name but also send a strong message to the SEC and other regulatory bodies.
Ripple and its supporters are calling for the SEC to be held accountable. They argue that the agency should face penalties for its actions, including compensating Ripple for its costly legal battle. This case goes beyond Ripple itself; it’s about safeguarding the crypto community’s interests and ensuring fair treatment under the law.
Political Shifts
With President Biden potentially being replaced by another Democratic nominee soon, there’s a sense that SEC Chair Gary Gensler’s influence is waning. Ripple’s resistance to the settlement is partly due to this changing political landscape, which could lead to a more favorable environment for the crypto industry.
Historically, the U.S. has been a pioneer in adopting and nurturing disruptive technologies. However, under Gensler’s leadership, the SEC has taken a hard stance against cryptocurrencies, particularly XRP.
This has halted the growth of the crypto sector. Major crypto companies like Ripple, Coinbase, Binance, Kraken, and Gemini have been pushing back, winning cases against the SEC and lobbying for political support.