The case between Ripple Labs and the United States Securities and Exchange Commission has been ongoing for some time now, and the trial phase is currently in progress. As of June 27th, there have been significant developments in the case. One notable change is that the SEC has lowered its demand for a fine from $2 billion to $102.6 million. This adjustment came after the Commission compared the penalty to the gross profit of the violative conduct, resulting in a much larger figure than Ripple had anticipated. Ripple’s legal team had requested a penalty of no more than $10 million, highlighting the stark difference in opinions between the two parties.
Another important development in the case is the resignation of David Hirsh, the SEC’s Chief of the Crypto Asset and Cyber Unit. This departure could have potential implications for the ongoing legal battle between Ripple Labs and the SEC. It remains to be seen how this change in leadership will affect the outcome of the case, but it is a significant development to note.
Ripple Labs is also facing legal challenges in California, where its CEO Brad Garlinghouse is a defendant in a civil lawsuit. Despite these challenges, there have been positive developments for Ripple in the legal arena. The Chief Lawyer for Ripple noted that a judge in California dismissed all allegations suggesting that Ripple violated federal securities law. Additionally, a ruling in New York stated that XRP is not a security, further bolstering Ripple’s position in the legal battle.
Recently, both Stuart Alderoty, Ripple’s legal chief, and Brad Garlinghouse, CEO of Ripple, have taken strong stances against the SEC’s chairman, Gary Gensler. Garlinghouse criticized Gensler’s remarks about the crypto industry, calling them “absolute nonsense.” He also pointed out Gensler’s shortcomings in relation to certain cryptocurrency dealings, questioning his effectiveness as a public servant. The clash between Ripple and the SEC chairman adds another layer of complexity to the ongoing legal battle.
The legal battle between Ripple Labs and the SEC continues to unfold with various twists and turns. The recent developments, including the adjustment of the fine demand, the resignation of a key SEC official, and the clashes with the SEC chairman, highlight the complexity of the case. As the trial progresses, it will be interesting to see how these developments impact the final outcome of the legal battle.
