The final verdict for the SEC-Ripple lawsuit, which has been ongoing since 2020, could come out before July 1. This date matches the new crypto service of the US Federal Reserve.
Ripple-SEC lawsuit at critical stage: FedNow developments provide clues
The ongoing legal battle between the US regulator and the blockchain company has approached its final months. The SEC initiated legal action in late 2020, claiming that XRP was an unregistered security. The US regulator made a similar move for almost all altcoins in June, years later. The lawsuit between the SEC and Ripple will determine the trajectory of the altcoin industry as well as XRP.
Recently, the Hinman documents were made public, a development in favor of cryptocurrencies. However, it is thought that SEC-Ripple trial judge Analisa Torres can only accept these documents as Hinman’s opinion. Wiliam Hinman, a former SEC executive, said in 2018 that Ethereum is not a security.
Why 1st of July?
The US Federal Reserve announced that the FedNow Service will be operational in July 2023. The service facilitates instant payment services by financial institutions across the US around the clock, throughout the year. Interestingly, there are three Ripple-affiliated banks among the participating banks for the July 1 launch. These are Finastra, Volante Technologies and ACI Worldwide. Therefore, the crypto community is wondering if the Ripple lawsuit decision should be made before the FedNow launch to ensure legal compliance.
Brad Garlinghouse: Ripple lawsuit nearing conclusion
Ripple CEO Brad Garlinghouse made statements that the case will end in a short time. Garlinghouse’s target was US regulators, and he stated in his statements that they had acted “clearly and simply in malicious intent.”
The Ripple CEO also says that his legal battle is “about to end.” However, he said the result would be the beginning of a larger war for the industry. Following the opening of the Hinman Papers on June 13, Garlinghouse posted a video on Twitter discussing the timeline of the case and expressing disappointment with the agency.
https://twitter.com/FilanLaw/status/1668633570796277760
In the June 17 video, Garlinghouse said the Hinman documents suggest the SEC “deliberately created confusion about the rules and exploited that confusion through enforcement.”
Trying something new – some thoughts from me on the events (specifically the release of the Hinman documents) of this week. For me, this has all had a personal bent to it – and felt like it warranted some personal comments. pic.twitter.com/k4dYeQGhsN
— Brad Garlinghouse (@bgarlinghouse) June 16, 2023
Garlinghouse later strongly criticized the SEC’s actions. He described the regulations in the US as a “clear and simple case of bad faith”. The CEO says he answered “every question the SEC had” before the lawsuit was filed. However, the SEC still accused XRP as a security. Finally, he stressed that the industry needs to work together as the SEC may take action against more crypto firms in the future:
While our cause ultimately comes to an end, for many it is just beginning, so the struggle for clarity must continue.
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