2022 will see the Securities and Exchange Commission against Ripple come to a conclusion, either through a settlement or through a court ruling.
The XRP market saw a gradual decline in daily trading volumes towards the end of 2021, although it remained above the billion-dollar mark, according to data from coinmarketcap.com.
Cryptocurrency investors and the public sector have been eyeing digital assets as they search for answers about what to expect from regulators as the space matures.
XRP lawsuit spans three years: 2020, 2021, 2022
2020 was the year the official SEC lawsuit against Ripple began. Jay Clayton, the former head of the SEC, signed the complaint on December 22, 2020. Something Ripple CEO Brad Garlinghouse commented on days ago on Twitter.
“Of all the dirty things in 2020, this was definitely an event that capped the year of rolling around in laughter. But what I said back then remains (painfully) true today: This is an attack on cryptocurrencies in the US, not just Ripple.”
2021 was the year when the two sides pursued their own litigation strategies, as the fact-finding process showed the plaintiff pushing the narrative that Ripple marketed and sold XRP as a security contract.
The defendants – Ripple Labs, Brad Garlinghouse and Chris Larsen – focused more on the lack of proper notification from the SEC that XRP could be considered security.
The numerous inconsistencies in SEC communications over the years have left many market participants wondering which digital assets can count as security.
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First Telegram, then Ripple, then Ethereum?
Clarity is clearly not one of the SEC’s talents. In 2020, the Securities and Exchange Commission (SEC) filed a complaint and won against Telegram (TON) for offering unregistered securities via an initial coin offering (ICO).
It was two years after SEC William Hinman’s previous speech of 2018, where he stated that ETH is not a security…although Ethereum raised funds in 2014 via an ICO as well.
As Ripple has continued to point out agency inconsistencies throughout the lawsuit, the SEC has backed down on any speech made by an official, even as they were commenting publicly on behalf of the regulator.
We’ll still have to wait a while to see if the move has convinced the judge, but with the start of the new year, news about what’s happening in court is expected to pour in on an almost daily basis.
2022 will see the Securities and Exchange Commission against Ripple come to a conclusion, either through a settlement or through a court ruling. This will likely happen in this first quarter of 2022, and the outcome will set the rules for future confrontations with the SEC as the agency shows no signs of ending the practice of regulation by enforcement.