According to CryptoPotato, the lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) is approaching a critical trial in April 2023, with potential long-term impacts on the cryptocurrency sector and possibilities of extended legal battles through appeals. The lawsuit dates back to December 2020, when the SEC accused Ripple of illegally raising over $1.3 billion in an unregistered securities offering by selling XRP. Ripple argues that its native token is a currency rather than a security and thus does not fall under the SEC’s jurisdiction.
The grand trial scheduled for April 2023 might significantly impact the entire cryptocurrency sector. However, the beginning of the courtroom battle does not necessarily mean that the end of the dispute is near. An AI-powered chatbot, ChatGPT, estimated that a final judgment is expected in the summer of 2024, with appeals potentially delaying the outcome until 2026. The case has been adjourned 'sine die,' which means 'without a date,' and the SEC's determination to win at all costs and appeal each unfavorable ruling could prolong the legal battle.
A resolution is still possible this year if both parties reach a mutual agreement before a final verdict. Ripple enters the upcoming trial with three vital partial court wins from last year. The first occurred in July when Judge Analisa Torres ruled that the firm's programmatic sales to secondary trading platforms did not constitute offers of investment contracts. The magistrates later dismissed the SEC's wish to appeal and cleared Ripple's CEO, Brad Garlinghouse, and Executive Chairman, Chris Larsen, of all charges brought by the watchdog. The regulator achieved a small victory earlier this year when Judge Sarah Netburn ruled that Ripple should disclose important financial records for 2022 and 2023, as insisted by the Commission.
