SEC filed case against Ripple Labs Inc. back in December 2020, which led to an unceasing series of events to this date.
On 23rd December, after the end of Jay Clayton’s (SEC chairman) service. The SEC elicited proof to file a case against Ripple lab Inc. SEC claimed that Ripple labs had raised 1.3 billion dollars through illegal or secret sales and distribution of assets owned by XRP.
Ripple was most extensive growing networks in the crypto industry of the U.S, founded in San Francisco back in 2012 and operates RippleNet and XRP protocols of payment, and is considered more soaring than Bitcoin. It has a better ledger and consists of a digital wallet across 55 nations for international transactions.
It is aiding to develop actual economic products utilizing revolutionary technology. Ripple’s blockchain is better than and alternative to the traditional payment networks, e.g., Society for Worldwide Interbank Financial Telecommunication (SWIFT), as Ripple’s blockchain is more efficient, low-cost, and comprehensive.
The SEC put up the case doesn’t claim Ripple to be performing fraud-based activities. However, SEC’s case seems to be a set of questions elicited from a few points of Clayton’s statement about cryptocurrency.
According to Clayton, Supreme SEC authority should regulate every digital asset disregarding its type of designs, use, and its purpose.
The lawsuit (filed against XRP) caused a significant decline in its price by 25% and paused its trade ratio. However, Ripple called this lawsuit an attempt to defame and damage its image that was skyrocketing at a frenetic speed.
In the last 24hours, the rates of XRP have skyrocketed up to 22% like never before since 2018. As of today, Ripple Labs Inc. won the case of discovery ruling.
The SEC would now have to hand over the documents based on internal communication about Bitcoin and Ethereum. However, general public can now access some of the information that the SEC kept secret on the regulations regarding cryptocurrency.
Ripple and partners had applied in court against SEC to extract the information of SEC’s communication about crypto and their secret communication on XRP. Ripple is waiting for SEC to list XRP as a cryptocurrency so it can get some support (in its case) and be treated as other Cryptocurrencies as Bitcoin and Ethereum. However, another benefit that XRP can get is the chance to look through the insights of the SEC’s criteria for labeling a digital asset as secured.