Ripple’s Win Against SEC Could Face Future Challenges, Expert Warns
This statement follows recent shifts in the SEC’s approach to digital assets under former President Donald Trump’s administration. Garlinghouse’s announcement prompted a short-term rally in XRP’s price, but the optimism quickly faded.
Despite this boost, a former SEC lawyer warned that Ripple’s victory may not be as secure as it seems. He indicated that Ripple could still face ongoing regulatory challenges, even after this apparent legal breakthrough.
The XRP legal battle, which began in 2020, has been central to debates over how cryptocurrency should be regulated in the U.S. Garlinghouse expressed his excitement on social media, stating that the SEC’s withdrawal of the case marked a crucial win for Ripple, the broader crypto space, and the industry as a whole. Following the announcement, XRP saw a sharp increase in price, as investors celebrated the potential end of years of legal uncertainty.
However, former SEC lawyer James Farrell cautioned that Ripple’s victory may be temporary. He emphasized that while the SEC might have dropped its case, other regulatory bodies or private litigants could still challenge Ripple’s past actions. Farrell also noted that, while the SEC had determined Ripple’s past XRP sales were not securities transactions, future sales could come under legal scrutiny. He further suggested that if the political landscape changes in the coming years, the SEC could revisit Ripple’s past sales, even from several years ago, unless new legislation is passed to clarify the issue.
Editorial Team
Reporter at Coindoo
