In the legal battle between Ripple Labs Inc. and the Securities and Exchange Commission (SEC), a final blow is poised for Ripple Labs as the SEC works towards securing a final judgment. Pro-XRP lawyer Bill Morgan is a prominent figure with a deep knowledge of the downsides for Ripple from the SEC’s charges of non-compliance. Moreover, Mr. Morgan has enlightened many on XRP’s hardships when trying to regulate Ripple.
Allegations of preferential treatment
A cornerstone of the argument that the SEC is forming against Ripple is the insinuation that the crypto community granted special privileges to institutional investors, with the regulator pointing to the possible negative effect on retail investors stemming from discounting. The last pleading of the SEC argued that the defendants perhaps tampered with the investors who had paid $480 million in retrospective loss.
Williams Morgan, acting on behalf of Ripple Labs, has disapproved of the agency’s allegations of responsibility regarding the SEC’s claims, implicitly asking that the agency show evidence. Morgan questions whether the SEC has adequately guided or based their claims against social media on facts. He says that the causation of the alleged wrongdoing may or may not be true. The focus of his speech corresponds with what a well-founded investigation must be and further proves the truthfulness of the circumstances of the case.
The main worry of Morgan is the possibility of destroying Ripple’s reputation, e.g., for banking institutions or other potential big investors. This information triggers concerns about the company’s compliance with the standards for disclosure issues and reporting obligations. These problems, besides complicating Ripple’s court argument, are serving to erode investor confidence in the company, thus exposing Ripple to even more difficulty in the digital currency market.
SEC’s escalating efforts
Regarding Ripple’s appeal efforts as a prompt action, the SEC stepped up its actions by filing an appeal in Judge Torres’ court to decide against the blockchain company. This regulatory body seeks wide-ranging punitive actions to be imposed – for example, permanent injunctions, disgorgement, prejudgment interest, and civil penalties totaling nearly $2 billion. The SEC’s move demonstrates the seriousness and severity of the allegations against Ripple that depict the Company’s ill-doings and the SEC’s persistent intent to sanction Ripple for the alleged wrongdoing.
While the lawsuit between Ripple and SEC has particular consequences for the two players, it also has broader implications for the whole cryptocurrency trade. Authorization, which Ripple could, in turn, boost the acceptance of the credentials to the company’s business model and compliance with existing regulations, hence renewing investor interest in their native cryptocurrency, which is XRP. On the contrary, the SEC victory could be a massive case that may stir confusion on whether certain operations in crypto are even legal. Therefore, stricter regulatory measures could be implemented in the cards.
The SEC lawsuit looms large as Ripple grapples with the intricacies of its legal dispute. At the same time, the crypto market is implacable, meters silently, and its stakes are rising with the case’s progress. With over $11 billion, everyone’s XRP is on the charts, and everyone is just looking at the court procedures. The outcome remains uncertain for now, but one thing is clear: the decisions this legal fight renders will be vital if we want the cryptocurrency market to grow or not for quite some time.
