The Intensification of Ripple vs. SEC: XRP Price Uncertainty Amplified by California Lawsuit
Ripple, the popular cryptocurrency company, is currently facing a series of legal challenges in 2024. In addition to an ongoing lawsuit with the Securities and Exchange Commission (SEC), Ripple is now also embroiled in a legal battle with California regulators.
The SEC lawsuit accuses Ripple and its subsidiary, XRP II, LLC, of selling XRP without proper registration, thereby violating securities laws. However, Ripple vehemently denies these allegations and argues that XRP is not a security, and therefore does not require registration. This legal dispute could have far-reaching implications for how digital assets are regulated in the United States, potentially impacting the entire cryptocurrency market.
The lawsuit, filed in the Northern District of California, seeks to represent two groups: the Federal Securities Claims Class and the California State Securities Claims Class. These groups include individuals who purchased XRP between July 3, 2017, and June 30, 2023. Those affected by the lawsuit have until April 5 to decide whether to join the lawsuit or pursue separate legal action against Ripple.
This is not the only legal battle Ripple is currently facing. In December 2020, the company was sued by the SEC for conducting an unregistered $1.3 billion securities offering through XRP sales. Recent developments, such as a motion by Kraken to dismiss the SEC lawsuit, have added further complexity to the situation. The motion references a ruling by Judge Torres on programmatic sales, which reveals the strategies used by investors and traders to navigate regulatory scrutiny.
These ongoing legal battles highlight the regulatory uncertainties surrounding the cryptocurrency industry. There is an urgent need for clear policies and regulations governing digital assets. While Ripple continues to confront these challenges, the cryptocurrency market eagerly awaits the resolution, as the outcome could have a significant impact on the future of digital currencies in the United States.