A few months ago, the SEC launched a lawsuit against the Ripple Labs executives to illegally raise about $1.3 billion by trading unregistered securities. The commission aims to qualify XRP, the native token of Ripple Labs, as security. While the Ripple Labs executives adhere to the defense that XRP is only a digital token that has ownership and utility.
There had been rumors in the crypto circles that SEC has been trying to exert new regulations for decentralized tokens and digital assets through this case. However, the XRP token has remained resilient in the markets and managed to keep holding to the top 5 digital assets in the world. During the last few weeks, Ripple Labs has scored one after other legal victories that have made it certain that SEC would lose the case eventually.
Does SEC have a Chance to Win the Ripple Labs Case?
Ran Neuner, CNBC reporter and crypto journalist, has come forward to claim that it is high time that SEC should back away from the Ripple Labs case. Many Bitcoin enthusiasts like Thomas Hodge are not even hesitant to appeal to the newly appointed SEC chief to reconsider his administration’s position on the digital asset case and withdraw the lawsuit.
An independent lawyer Jeremy Hogan managed to bring forward documents to light where SEC accepted Ripple Labs’ position as a digital currency company in a previous case. However, if the SEC prosecution team would challenge the precedent of the previous lawsuit’s focal point, it could change the direction of the discovery. On the other hand, if SEC successfully manages to win the case of the same nature against LBR Inc. The chances of Ripple Labs winning could slim down.
XRP Spikes are Showing Bigger Bull Jumps for the Next Quarter
XRP has been under tremendous pressure due to an ongoing lawsuit. Ripple Labs has not added its current XRP holdings to the equity, and Garlinghouse has been heard quoting that it is possible that the company part ways from XRP and start trading with a new token altogether. There is also the matter of huge delisting of XRP tokens from major crypto exchanges.
However, XRP is currently trading on par with digital tokens like ADA, DOT, and XLM. These digital tokens are some of the most talked-about digital assets and have a prominent position at crypto exchanges like Coinbase and Kraken. After the news of the latest legal wins hit the media, XRP surged 38%. In the ongoing week alone, the total appreciation of the controversial token is 110%.