XRP Threatened? This New Legal Twist Could Change Everything For Ripple

Ripple Labs, the company behind the XRP crypto, continues to fight against the Securities and Exchange Commission (SEC). In a recent update, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, provided crucial details on the next steps of this legal battle, which could well be fatal for XRP.

Ripple on the verge of defeat?

The SEC initially sued Ripple for selling XRP, which it considers unregistered securities. This action has had major repercussions in the crypto market, leading to increased price volatility for XRP. Ripple disputed these allegations, claiming that XRP is not a security and that the SEC misinterpreted the nature of the cryptocurrency.

However, in early October 2024, the SEC filed its notice of appeal, resulting in a +15% drop in XRP price. The U.S. crypto regulator now intends to file its preliminary argument statement (Form C), this Thursday, October 17, 2024. Subsequently, Ripple will respond with a counter-appeal and also plans to file its “Form C” a week after the SEC. Both parties will then discuss the briefing schedule, with the first SEC brief expected in three months (January 2025), followed by Ripple’s response.

Stuart Alderoty indicated that the SEC would likely target XRP sales on various trading platforms. Although Ripple is confident, the SEC could still win. Lawyer Fred Rispoli stated that the SEC’s chances of victory would depend on the assigned judges. A government-friendly panel of judges would increase Ripple’s loss chances to 80%.

Implications for the crypto market

This legal battle, which could well last until 2026, will have significant implications for the entire crypto market. For, a Ripple victory could set an important legal precedent, clarifying cryptocurrency regulation in the United States. It could also encourage other cryptocurrency companies to challenge the SEC’s actions.

Finally, the legal battle between Ripple and the SEC is far from over. With stakes so high, this case could well define the future of crypto regulation in the United States and beyond.