Ripple to Spend $200M on Legal Defense Against U.S. SEC

Garlinghouse also expressed concerns about the US falling behind other nations regarding virtual asset regulation because ‘politics is taking precedence over policy.’ He cited the regulatory authority for virtual assets in the United Arab Emirates and the recent Markets in Crypto-Assets (MICA) bill passed by the European Union as examples of how far behind the US is compared to other nations. 

The Securities and Exchange Commission (SEC) filed a lawsuit in 2020 s accusing Ripple of selling unregistered securities through its digital currency, XRP. Ripple vehemently disputed these claims and insisted that XRP is a valid currency, not a security.

The ongoing lawsuit between the U.S. SEC and Ripple has created much anticipation among the XRP community, which eagerly awaits the final verdict. Pro-XRP attorney Jeremy Hogan claimed that the SEC has failed to successfully argue that XRP should be classified as a security. 

Hogan explained his position via tweet threads; he stated that XRP couldn’t be classified as a security other than an investment contract. He noted that XRP doesn’t meet the criteria of stocks or bonds and that its use case as a currency and pre-existence before Ripple’s creation differentiates it from other tokens marketed as securities.

Despite the anticipation surrounding the final verdict, the exact date remains unknown. The date is expected to be announced before the end of the year.  Nonetheless, many stakeholders believe the outcome of this lawsuit will shape the future of virtual asset regulation in the U.S. and the cryptocurrency industry as a whole.

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