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  • Mathew Jacob

Settlement Only Option in SEC vs. Ripple as U.S. Elections Near

As the United States heads into another election season, the legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple, the cryptocurrency company, continues to unfold. In a recent filing, Ripple made a compelling argument that an appeals court intervention is not warranted, further emphasizing that a settlement might be the most practical solution to bring an end to this ongoing dispute.

The SEC's quest for federal judge approval to appeal the ruling by Judge Analisa Torres, which found that Ripple's programmatic sales of XRP did not violate securities law, has set the stage for a legal showdown. If approved, the SEC would need to convince the Second Circuit Court of Appeals to take up the case, a process that Ripple believes should not be pursued.

In its filing, Ripple contended that there are no controlling legal questions in this case. Furthermore, they argued that an appeal would not expedite the resolution of the overall dispute. To justify an appeal, the SEC must demonstrate that there are significant questions of law at hand and that different judges might disagree with the initial ruling. Ripple asserted that the SEC has failed to meet these criteria.

The ruling in July, which cleared Ripple of securities law violations in making XRP available to retail investors, was a pivotal moment in this legal saga. Judge Torres found that while Ripple did violate federal securities laws by selling XRP to institutional investors, they did not commit the same offense when making XRP accessible on exchanges to retail investors.

However, it's worth noting that a different judge in the same court, Judge Jed Rakoff, held a contrary view in the SEC's case against Terraform Labs. This contrast became a point of contention when the SEC filed its substantive appeal on August 18. Ripple, in its recent filing, highlighted that the factual bases of each case were distinct, leading to the disparate rulings.

Ripple argued, "This Court’s summary-judgment ruling relied on record evidence that Ripple made no 'promises or offers' to purchasers in Programmatic Sales," while Terraform Labs, according to the SEC's allegations, had promised substantial returns to its investors.

As the legal wrangling continues, Ripple and the SEC are on a collision course with a September 8 deadline for the SEC to respond to Ripple's latest filing.

In the backdrop of this complex legal battle, the crypto industry is witnessing remarkable developments. Rencom Network, for instance, has made headlines by enabling crypto-only payments for their rental services, using their native token RNT. The value of RNT has surged over 3,000% in the last week, capturing the attention of the crypto community.

In conclusion, as the SEC vs. Ripple lawsuit rages on, both parties face increasing pressure to seek a resolution. With the U.S. entering an election season, the focus on regulatory clarity in the cryptocurrency space becomes more pronounced. Settlement discussions may be the most pragmatic way to put this legal battle to rest, allowing the crypto industry to move forward with greater certainty and stability.



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