SEC Ripple case could show why crypto requires clearer rules
The legal fight between the US Securities and Exchange Commission (SEC) and Ripple Labs has been ongoing for nearly five years. This case is closely watched as the court determines whether the XRP offering violated US securities laws.
Ripple argued that XRP is a digital currency, not a security. However, in 2023, Judge Analisa Torres ruled that Ripple breached securities laws by offering XRP directly to institutional investors such as hedge funds and investment firms. The judge rejected the joint motion from Ripple and the SEC due to procedural errors.
Ripple’s legal battle underscores the pressing need for clear regulations in the crypto space. While Ripple can refile their motion correctly, complying with Rule 60 (b), this will prolong the legal process. Investors are on edge, and developers are cautious as XRP prices react sharply to each new development in the case.
