Ripple Latest News: In the past few months, there have been several setbacks experienced by the United States Securities and Exchange Commission (SEC), including their battle involving XRP. These setbacks, occurring during Gary Gensler’s tenure, raise concerns about the SEC.
The SEC’s recent legal setback raises concern
Recently, Stuart Alderoty, the Chief Legal Officer of the rapidly growing digital payment network Ripple (XRP), expressed concerns about the SEC’s commitment to upholding the law in the realm of cryptocurrency. Alderoty also supported the Chief Legal Officer of Coinbase in light of these setbacks.
The latest setback for the SEC came from the Fifth Circuit Court of Appeals, which, on October 31, 2023, ruled that the SEC’s stock buyback disclosure rule was arbitrary and lacked a reasonable explanation.
This ruling provides the SEC with an opportunity to better justify its actions. It follows the SEC’s earlier losses in the XRP lawsuit and the Grayscale filing, which could have significant implications for the cryptocurrency industry’s regulatory future.
Also Read: Legal experts predict SEC’s Ripple battle success chances – 3% to 14.2%
A report by Todayq News on August 29, 2023, revealed that the court ordered the SEC to provide a transparent and comprehensive explanation for rejecting any crypto-related applications.
The legal action began when several U.S. business and trade groups challenged an SEC rule that required crypto businesses to report daily information on their stock repurchases every quarter, as well as the reasons behind these buybacks.
These legal battles with the SEC have had a significant impact on several crypto businesses in the United States. Moreover, XRP also faced issues, as many crypto exchanges delisted XRP tokens following the SEC’s actions.
Ripple’s legal successes and ongoing issues
On October 25, 2023, Judge Analisa Torres officially dropped charges against Ripple’s CEO, Brad Garlinghouse, and Executive Chairman, Chris Larsen, in the Ripple vs. U.S. SEC lawsuit. Furthermore, there have been updates on the sale of XRP to institutions, with Judge Torres requesting both sides to submit a plan for how to move forward.
In the case of regular individuals buying XRP tokens, the verdict on July 13, 2023, favored Ripple. These wins for Ripple have raised questions about how the SEC is handling legal matters.