{"id":32171,"date":"2024-12-30T19:10:44","date_gmt":"2024-12-30T19:10:44","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=32171"},"modified":"2024-12-30T19:10:44","modified_gmt":"2024-12-30T19:10:44","slug":"ripple-v-sec-yearly-recap-was-2024-the-most-important-year","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=32171","title":{"rendered":"Ripple v. SEC Yearly Recap: Was 2024 the Most Important Year?"},"content":{"rendered":"

TL;DR<\/strong><\/p>\n

The Ripple v. SEC case culminated in August when Judge Torres ordered the company to pay a $125 million fine for breaching certain securities laws. The penalty represented a substantial reduction of what the regulator initially asked for.<\/span>
\nDonald Trump\u2019s election victory and Gary Gensler\u2019s announced resignation fueled optimism among XRP supporters, expecting pro-crypto leadership to influence the case\u2019s resolution favorably.<\/p>\n

<\/a><\/span><\/h2>\n

The First Half of the Year<\/h2>\n

2024 has been quite eventful for the legal battle between Ripple and the US Securities and Exchange Commission (SEC). In the first months of the year, both entities filed various motions in preparation for the trial\u2019s start. <\/span><\/p>\n

For instance, the SEC <\/span>requested <\/span><\/a>Ripple to hand over essential documents such as the company\u2019s financial statements for 2022 and 2023 and its post-complaint XRP sales contracts. The firm opposed the demand, maintaining that those records were untimely and unrelated to the case. <\/span><\/p>\n

This<\/span> caused the agency to <\/span>re-submit<\/span><\/a> the motion, claiming that the documents could offer <\/span>essential insights<\/span> into Ripple\u2019s financial history and help determine if the company breached specific securities regulations. The firm <\/span>reacted<\/span><\/a> with a\u00a0motion to file a sur-reply letter, seeking \u201cto correct a significant factual mischaracterization made by the SEC.\u201d<\/span><\/p>\n

Eventually, Judge Sarah Netburn <\/span>ruled<\/span><\/a> in favor of the Commission, ordering Ripple to disclose its financial records for <\/span>the years<\/span> 2022-2023.<\/span><\/p>\n

The two entities continued to submit documents and data until the beginning of the trial stage. As CryptoPotato<\/em> <\/span>reported<\/span><\/a>, the legal proceedings between Ripple and the SEC reached that pivotal phase on April 23. <\/span><\/p>\n

While many industry participants raised their hopes that this could be a sign of a soon-approaching settlement, the complexity of the court process and possible appeals from both sides mean that the case could be prolonged for a few more years. In May, the popular American attorney Jeremy Hogan <\/span>claimed<\/span><\/a> that the lawsuit had entered a stage with fewer developments, and both entities had to wait for the judge\u2019s decision.<\/span><\/p>\n

Ripple and the SEC continued to <\/span>throw punches at each other<\/span>, clashing over a key witness\u2019 testimony and arguing about the potential size of the company\u2019s fine for violating certain laws.<\/span><\/p>\n

The watchdog <\/span>sought<\/span><\/a> a $2 billion penalty on the company, alleging it of conducting an unregistered securities offering by selling its XRP token. Ripple disagreed, <\/span>insisting<\/span><\/a> that the amount should not exceed $10 million. It compared its case to another legal battle between the agency <\/span>and Terraform Labs, saying allegations of fraud are only present in the second lawsuit.<\/span><\/p>\n

The Court\u2019s Decision\u00a0<\/span><\/h2>\n

In August, Judge Analisa Torres <\/span>ordered<\/span><\/a> Ripple to pay a $125 million civil penalty for violating federal securities laws through its institutional sales of XRP. It is worth mentioning that in the summer of 2023, the same magistrate found that the company\u2019s programmatic sales of XRP to retail clients through centralized exchanges did not breach the rules.<\/span><\/p>\n

Many industry participants viewed the August ruling as a huge victory for Ripple, considering that the fine represents just a fraction of what the SEC initially asked for. The company\u2019s executives also seemed pleased. CEO Brad Garlinghouse\u00a0<\/span>said<\/span><\/a> the firm respects the court\u2019s decision, while CLO Stuart Alderoty <\/span>stated<\/span><\/a> the organization will pay the penalty in cash off its balance sheet.<\/span><\/p>\n

Nonetheless, the SEC officially <\/span>appealed<\/span><\/a> in October, triggering a fresh doze of uncertainty. The action means that the lawsuit entered a new phase comprised of filings and a briefing process.<\/span><\/p>\n

Donald Trump Comes to the Stage<\/span><\/h2>\n

Many crypto proponents cheered Trump\u2019s victory in the US presidential elections (held on November 5). Those <\/span>in favor of<\/span> Ripple and its native token were also among the pack due to the Republican\u2019s promise<\/a> to fire the SEC\u2019s Chairman Gary Gensler on day 1 after taking office.\u00a0<\/span><\/p>\n

Gensler has been in charge for over three years, during which time the agency has filed numerous lawsuits against crypto businesses.\u00a0<\/span><\/p>\n

While some doubted that Trump could fire him (since the SEC operates as an independent entity), the Chairman <\/span>said<\/span><\/a> he would resign in January next year. Moreover, the newly elected president of the States <\/span>picked<\/span><\/a> the pro-crypto Paul Atkins to succeed him.\u00a0<\/span><\/p>\n

The XRP Army expects the Commission\u2019s upcoming leadership to take a less hostile stance toward the cryptocurrency industry and push the case against Ripple to a favorable resolution soon.\u00a0<\/span><\/p>\n

The post Ripple v. SEC Yearly Recap: Was 2024 the Most Important Year?<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

TL;DR The Ripple v. SEC case culminated in August when Judge Torres ordered the company to pay a $125 million fine for breaching certain securities laws. The penalty represented a substantial reduction of what the regulator initially asked for. Donald Trump\u2019s election victory and Gary Gensler\u2019s announced resignation fueled optimism among XRP supporters, expecting pro-crypto […]<\/p>\n","protected":false},"author":0,"featured_media":32172,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-32171","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/32171"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32171"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/32171\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/32172"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}