- Conclusion of the legal battle
- Possible consequences for SEC
- Role of the Inspector General investigation
Ripple's long legal battle with the SEC has finally ended, marking a significant event for the world of cryptocurrencies. The case centered on whether XRP is a security, concluded with Ripple paying a reduced fine of $25 million instead of the original $2 billion. Ripple can continue operating internationally but faces limits on XRP sales to U.S. institutions.
Conclusion of the legal battle
The SEC even apologized for mischaracterizing XRP, raising doubts about its regulatory approach. Ripple’s victory is seen as a major boost for the crypto industry, and excitement is growing about XRP’s future potential.
Possible consequences for SEC
On the Good Morning Crypto Show, attorney John Deaton, who represented over 75,000 XRP users, was asked about the possibility of filing a class-action lawsuit against the SEC for allegedly bringing a false case against Ripple. Deaton explained that filing a class-action lawsuit against a government agency like the SEC is not that simple. While people have sued the SEC before, these lawsuits faced challenges. The law doesn't typically allow suing a government agency for simply being a bad regulator.
Role of the Inspector General investigation
However, Deaton added that there is an ongoing Inspector General (IG) investigation, and the final results of that investigation could change things. For instance, it’s very difficult to sue the SEC unless there’s evidence of gross abuse of discretion or something akin to criminal misconduct, such as deliberately misleading behavior. If the IG report uncovers misconduct, there could potentially be grounds for a civil lawsuit against certain individuals within the SEC. This could include claims of regulatory capture, where the regulator favors a few companies or people at the expense of others. However, Deaton stressed that it is a difficult path, and the possibilities would depend heavily on what the IG report ultimately reveals.
The legal battle between Ripple and SEC concluded with a significant win for Ripple and the cryptocurrency industry as a whole. Despite the limitation on XRP sales in the U.S., the company’s international operations will continue. The question of possible consequences for the SEC will depend on the results of the Inspector General investigation, which could influence future cryptocurrency regulation.
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