Brad Garlinghouse Lawsuit Update | Ripple - SEC (September 30, 2021) | XRP is $7? - Price Prediction

XRP CEO Brad Garlinghouse - Ripple SEC Lawsuit Update 09/30/2021

The crypto community is anxiously following the show of strength between Ripple and the SEC. A court ruling on this could show the extent to which the stock market supervisor is responsible for the crypto market at all.

The dispute between the SEC and Ripple Labs began in December 2020 when the U.S. Stock Exchange regulator accused the payment platform Ripple Labs of violating securities rules and therefore filed a lawsuit. Ripple had used the associated cryptocurrency XRP to finance its core cross-border transaction business. This unregistered offer is said to have raised $1.3 billion.

The action came as a surprise to Ripple, where it was considered that XRP did not fall under the "securities" category and the sale would therefore not have been subject to authorisation. Ripple pointed out that the regulator eventually allows other cryptocurrencies, such as bitcoin or ethereum, such as commodities, to be traded, which thus do not need to be registered as securities.
The SEC counters that the situation at XRP is different, after all, the token created by Ripple Labs was actively used to finance Ripple's business. This basically constitutes an investment in the company itself, making XRP a security that falls under the supervision of the SEC.

The lawsuit against Ripple has brought even more uncertainty to the already ongoing debate about whether cryptocurrencies such as securities, such as commodities, or something of their own are to be treated. This distinction is important because securities must be approved and regulated by the SEC and certain information must be disclosed to the SEC by the companies concerned.
The SEC, under its new boss Gary Gensler, is heading a sharp course against the crypto industry. The Authority feels responsible for cryptocurrencies and exchanges to ensure the protection of investors. Against this background, it becomes clear that the dispute between SEC and Ripple should be considered in a broader context. After all, market participants are hoping for more clarity from the ruling on what the crypto industry can expect from the SEC and the US judiciary in the future.

But now there was an interesting development. According to "Investing.com," the two parties have agreed out of court that certain documents requested as evidence from the respective counterpart remain under lockdown. This could indicate that a settlement is under way, so that the action against Ripple could not be used as a precedent in the future.

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