As it is known, in recent years, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and CEO Brad Garlinghouse and Chris Larsen. According to the SEC, Ripple traded $1.3 billion without notifying the commission. Ripple and other parties are now trying to refute the allegations. Several key court decisions have been made over the past year, with petitions from both sides being accepted or rejected.
In the years since the SEC sued Ripple, the financial community has been split over the legitimacy of the regulator’s claims. Although there have been some ups and downs in the case since 2020, no important decisions have been made yet. In any case, people think the situation is against Ripple as the latest developments include a number of important moves that could be crucial for Ripple’s defense. As it is known, the court ruled in favor of Ripple last week.
During a recent podcast with Tony Edward of Thinking Crypto Now, former SEC policy manager Joseph Hall explained the status of the case, how it has progressed so far, and what the progress will be like:
“I’m also not sure what the SEC wants to prove in the XRP action,” Hall said, adding that he was surprised why the SEC sued in the first place. Hall said the Ripple network had been in operation for years before a last-minute lawsuit was filed against them. Hall believes Ripple has a strong defense of the SEC’s investigation. Finally, Hall said:
“Individuals and institutions should be notified if they are being reviewed by the regulator. Ripple’s defense was quite strong. I continue to think there’s a pretty good chance the SEC will lose.”
In short, according to Hall, the lawsuit brought against Ripple may not end in the way the SEC envisioned. Also, according to him, the judge in the case can ask the question:
“If you are aware that XRP is a concern and you have known about it since 2012, why now?”
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