XRP – SEC Case Update: Is there good news for Ripple after FBI crypto tip?

Published in: April 27, 2024

• Judge Netburn’s Scheduling Order Offers Hope Amid Uncertainty in Ripple-SEC Legal Battle
• FBI Caution, SEC Actions Indicate Growing Regulatory Pressure on Cryptocurrencies

The United States Securities and Exchange Commission (SEC) has been closely monitoring crypto companies for a long time, with Onda being a prime example. The aforementioned lawsuit, originally filed in 2020, is in the news today after Magistrate Judge Sarah Netburn issued a scheduling order.

Ripple’s latest motion for order seeks to dismiss new SEC expert reports supporting its case. Judge Netburn subsequently granted the SEC an extension until April 29 to respond to Ripple’s request. Subsequently, Ripple will now have a short window of three business days to share his response to the same.

This latest development raises a crucial question: could this signal the end of the long-running legal battle between the SEC and Ripple?

What do the executives say?

In its defense, XRP challenges the SEC’s proposed civil penalties, advocating for a maximum penalty of $10 million. According to Ripple, the SEC’s accusations are exaggerated and lack evidence. They also highlight the lack of evidence of future violations in their institutional sales of XRP, Ripple added.

When discussing the uncertainty ahead, many crypto commentators have had a lot to say, with one stating:

“The #Ripple vs #Sec lawsuit could reach the United States Supreme Court.”

He was not alone, as Stuart Alderoty, Ripple’s chief legal officer, criticized the SEC for its “gross abuse of power.”

The SEC’s abuse of power

Needless to say, it’s not just Ripple that’s on the SEC’s radar. Coinbase and Uniswap are also in the mix now. In fact, Uniswap just received a Wells Notice from the SEC. Sharing concerns about this move and its effects on the crypto community Hayden Adams, CEO of Uniswap, in a separate interview on the “Bankless” podcast, said:

“The SEC is essentially taking very aggressive stances and is basically trying to shut down cryptocurrencies.”

Amid concerns about alleged SEC overreach, Bloomberg recently reported the resignation of two SEC lawyers following sanctions from a federal judge and heavy criticism of the Wall Street regulator for what was described as a “serious abuse.” of power” in a cryptocurrency case.

Echoing similar sentiments, Jake Chervinsky, Variant’s chief legal officer, stated in “Unchained”

“I think it’s really time for Congress to step in and decide what the law should be instead of leaving us all in this sort of haze of regulatory uncertainty.”

After the SEC, now it’s the FBI

Interestingly, it is not just the SEC that is going after cryptocurrencies and crypto entities.

The Federal Bureau of Investigation (FBI) recently joined the ranks of regulators, warning Americans against using non-KYC cryptocurrency and Bitcoin money transmission services. However, at the moment it is too early to say whether this advice will have any impact on the thousands of people who make up the crypto community in the US.

This is an automatic translation of our English version.