<h2>Why has SEC sued Ripple?</h2><img src="https://cdn.builder.news/news/11ed4dbf2ebddd73a8e6023f659fee92.jpg" alt="why has sec sued ripple" title="why has sec sued ripple" width="600" height="280" class="lykafe0">(Source: Internet)Before diving deep into the lawsuit, let’s find out first about what is ripple cryptocurrency. In 2012, Ripple Labs debuted on the fintech scene with the reassuring promise of offering financial institutions quickly and low-cost clearing of international money transfers. To make it possible, the company developed the RippleNet network, which enables real-time settlement and clearing of transactions made using the cryptocurrency XRP.However, over time, XRP expanded beyond the cited application. In 2013, the company's founders raised money using XRP as a digital asset. As a result, in 2020, Ripple Labs and its current and former CEOs were sued by the United States Securities and Exchange Commission (SEC). The SEC sued Ripple, but why?According to the SEC, the executives launched an initial public offering (IPO) of XRP, which at the time of capital raising was an unregistered security. In accordance with the complaint, Ripple raised money by issuing XRP tokens to investors in the US and other countries through unregistered security sales. Ripple also provided non-cash services like market-making and labor in exchange for billions of XRP.The lawsuit alleges that Brad Garlinghouse, the current CEO of Ripple, and Chris Larsen, the co-founder and former CEO of Ripple Lab, influenced personal unregistered XRP transactions totaling over $600 million as well as structuring and promoting the XRP sales used to sustain the company's business. In addition, the defendants violated the registration requirements of the federal securities laws by failing to register their XRP offers and sales or qualify for an exemption from registration.According to the SEC, XRP is a security. A security is typically a tradable financial instrument that represents ownership in a company or other comparable entity but has no practical use. For instance, publicly traded companies frequently describe shares as securities in order to raise money.A civil lawsuit was filed towards the end of December 2020 because XRP tokens were used to support Ripple's platform, which simplifies money transfers for retailers. The platform's administration benefitted from the XRP sales as well. But it's important to remember that the SEC does not consider Bitcoin (BTC) to be a security. You may read the legal definition of securities here.In 1946, the Supreme Court decided the United States SEC vs. Howey test, which is used to determine whether a transaction qualifies as an investment contract under the Securities Act of 1933.The Howey test states that a key consideration in assessing whether or not an investment contract is a security is the investor's control over the profit. Generally speaking, if investors have no control over the asset, it is regarded as a security. Therefore, did XRP pass the Howey test's requirements?Securities must be registered with the SEC, and some financial data must be disclosed publicly, according to SEC regulations. Protecting investor interests while battling fraud is the goal. The SEC found that XRP met the criteria of the Howey test because Ripple Labs sold XRP coins valued at $1.38 billion. Investors bought XRP on the impression that they were funding a joint venture. Investors anticipated that the price of XRP would increase as a result of Ripple's marketing initiatives and supply manipulation.&gt;&gt;&gt; You might also concern:&nbsp;<a href="https://www.builder.news/crypto-insights/xrp-and-jed-mccaleb-a-crypto-divorce-bvUJ0" alt="XRP and Jed Mccaleb: A crypto Divorce" title="XRP and Jed Mccaleb: A crypto Divorce" target="_blank" rel="" class="">XRP and Jed Mccaleb: A crypto Divorce</a><h2>How Ripple reacted to SEC</h2><img src="https://cdn.builder.news/news/11ed4dbf2ebde355a8e6023f659fee92.jpg" alt="how ripple reacted to sec" title="how ripple reacted to sec" width="600" height="338" class="lykafe1">(Source: Internet)Most lawsuits filed by the SEC are settled before going to trial. Individual cryptocurrency businesses must comply with the SEC's demands and pay fines to be released. Ripple, in contrast to many others, went all out and got into a legal fight.Lawyers for Ripple asserted that the SEC never forewarned or informed the company. The American regulatory body also acknowledged that Ripple was not informed that XRP might be considered a security.Because of this, Ripple thought the SEC had a bias when it came to treating virtual currencies like XRP as securities. If this is proven to be accurate, the commission's credibility and authority will both be compromised.Some of the connections SEC members have had with other cryptocurrency systems, such as Ethereum, have been particularly addressed by Ripple. Although there is currently no evidence of these connections, the commission exempted Ethereum from securities regulations by claiming that it was acting decentralized while also suing XRP, which appeared fishy.<h2>Timeline of the battle between Ripple and the SEC</h2>The question of when the Ripple vs. SEC litigation will be settled has been lingering for months, as the blockchain company risks missing out on commercial chances. At the same time, the matter is pending and XRP investors wait for the digital asset to be relisted.Below is a timeline of what happened in the SEC vs Ripple lawsuit:<ul><li>December 21, 2020: Ripple Labs, two of its executives, and the business itself were sued by the SEC. Garlinghouse made the decision to represent themselves in the XRP court matter rather than complying with the SEC's demands.</li><li>December 28, 2020: The exchange's delisting of the XRP coin was announced by Coinbase.</li><li>March 3, 2021: In letters to the U.S. District Court Southern District of New York Magistrate, Larsen and Garlinghouse argued that the SEC did not get fair notice.</li><li>March 8, 2021: In response, the SEC asked the judge to hold a hearing right away.&nbsp;</li><li>March 22, 2021: Judge Netburn informed the SEC that the XRP token differs from BTC and ETH in that it has a financial value and utility.</li><li>April 13, 2021: Hester M. Peirce, an SEC Commissioner, released the Token Safe Harbor Proposal 2.0 to provide developers a three-year grace period to comprehend how their involvement in decentralized networks relates to exemption from the securities laws.</li><li>June 14, 2021: The SEC's deadline for publishing its internal crypto trading policies has been extended by the court to August 31, 2021.</li><li>August 31, 2021: The SEC is required to publish its internal crypto trading policies.</li><li>October 15, 2021: Deadline for requesting expert opinions from those with knowledge of securities and cryptography.</li><li>January 24, 2022: In the SEC's lawsuit alleging that the XRP coin is an unregistered securities, Netburn has given the SEC until February 17 to appeal her earlier order requiring the defendant Ripple Labs to turn over some sensitive government papers.</li><li>April 25, 2022: The executives of Ripple Labs and the SEC have jointly agreed to extend the schedule and delay the lawsuit until the end of 2022.</li><li>July 13th, 2022: U.S. District Court Judge Sarah Netburn denied the SEC's requests for the attorney-client privilege (in this case, confidentiality) regarding internal agency documents in a speech. by Former SEC Director William Hinman.</li><li>September 30th, 2022: Judge Analisa Torres rejected the SEC's second attempt against Ripple to withhold documents related to former SEC Director William Hinman, who once claimed Bitcoin and Ethereum were not securities.</li></ul><h2>Will this war come to an end?</h2><img src="https://cdn.builder.news/news/11ed4dbf2ebde698a8e6023f659fee92.jpg" alt="sec vs ripple lawsuit" title="sec vs ripple lawsuit" width="600" height="293" class="lykafe2">(Source: Internet)Advocates believe that so far, the court decisions have favored Ripple. XRP2 advocate and U.S. legal counsel Jeremy Hogan anticipate a speedy resolution to the case. By April 2022, according to Garlinghouse, the SEC lawsuit will be concluded.The letter, which stated that the class-action case would start on August 26, 2022, but that the parties had decided to begin on November 18, 2022, to prepare for the factual and legal questions, was presented to the court of law on February 23, 2022.Who will prevail in the SEC vs Ripple lawsuit is uncertain? Both Ripple Labs and the SEC appear to have some procedural consideration success but in different ways. For instance, while the SEC was successful in getting a postponement, Ripple was successful in forcing the SEC to hand over the paperwork.More than only the Ripple community is affected by the rulings in the Ripple vs. SEC dispute. The lawsuit can deliver a strong message to all participants in the cryptocurrency business, including exchanges, investors, and traders, in addition to XRP holders. The verdict in the lawsuit could have a variety of effects depending on the nation.The outcome of the lawsuit, on the other hand, would give the United States a special position in the cryptosphere. Most members of the cryptocurrency community are optimistic about the Ripple v. SEC legal battle and think Ripple Labs will prevail over the SEC. However, the price of the XRP coin and what can happen to it if Ripple loses the lawsuit are what existing XRP holders are most worried about.However, the good news is that perhaps the US Securities and Exchange Commission (SEC) and Ripple Labs are also “losing patience” with each other as they both want a federal judge to give a final verdict that Ripple can be associated with XRP are caught in violation of securities laws or dismiss the case without asking for a lengthy trial.Specifically, in late September 2022 both the SEC and Ripple filed a summary judgment petition in the Southern District of New York, asking Judge Analisa Torres to issue a judgment based on the arguments presented. in the accompanying documents, without referring the case to trial. All documents have been posted to the Federal Court database.<h3>Scenario after the lawsuit</h3>CEO of Ripple Brad Garlinghouse is displeased that the SEC lawsuit has been postponed until 2023. In the event that the court rules in favor of the SEC, he is threatening to leave the country. This wish was specifically expressed by Mr. Brad Garlinghouse in an interview with Axios Media conducted during the Collision conference in Toronto. According to him, if Ripple loses the lawsuit, the company won't even think about leaving the US; it will go right away. He also claimed that even if the SEC prevails, the regulator won't make any changes. The cryptocurrency market is expanding quickly. The CEO of Ripple also expressed his optimism that, if the lawsuit proceeds as anticipated, the business will likely perform an initial public offering (IPO), which Ripple had lofty plans for in April 2021, but this plan is already in place. Only SBI Group, Ripple's largest stakeholder, made that argument. Additionally, Ripple has announced the opening of a new office in Canada in June 2022. This is most likely also Ripple's first step toward preparing to depart the United States in the worst-case situation.Contrarily, an XRP victory would be viewed as a major victory for cryptocurrencies and would even lead to an improbable XRP-led crypto market resurgence in the midst of an ongoing bear market (in the best, most rosy scenario).Who is most likely to win? Of course, it's tough to determine from "the bleachers," but with XRP gaining over the litigation based on the summary filing development, it appears market sentiment is leaning against Ripple.<h2>Ripple price in the context of the Lawsuit with the SEC</h2><img src="https://cdn.builder.news/news/11ed4dbf2ebde9d3a8e6023f659fee92.jpg" alt="sec vs ripple lawsuit" title="sec vs ripple lawsuit" width="600" height="336" class="lykafe3">Amazingly, XRP has continued along its illustrious course all these years. With a pitiful $0.0058 when it first entered the cryptocurrency market, XRP coin kept up its trolling for several months. Then, in 2017, the news of the Ripple network partnering with Tokyo Mitsubishi bank completely changed the course of this historical platform.The coin has done pretty well in the global market, according to historical price movement. The price of the currency is now $0.3636, and it has a market capitalization of $17,578,603,657 and a supply of 48,343,101,197 XRP in circulation. It generated a record-breaking price of $3.84. The price has decreased by a massive 90.73% when compared to the all-time high, which is pretty significant. However, as compared to the record low, the present value has increased by 12606.40%. For owners of XRP or retail investor accounts, the price changes had turned out to be profitable.Due to the unexpected price increase in 2020, trade volume increased significantly in 2021. The candlesticks' length had grown, showing the trader's interest in the coin. After the first quarter of 2021 came to a conclusion, the currency saw another bull run, and in just 10 days, its price increased from $0.57 to $1.82. The $2 resistance was too strong for the coin to overcome, therefore it found support at $0.5.The coin made numerous attempts to break through the $1.3 level and return to the $2 level, but it was unsuccessful. Due to the end of the bull market, 2022 has not been favorable for XRP or the overall cryptocurrency industry. After a sizeable bear run, there was a consolidation between $0.557 and $0.30.<img src="https://cdn.builder.news/news/11ed4dbf2ebdecf1a8e6023f659fee92.jpg" alt="ripple price" title="ripple price" width="600" height="388" class="lykafe4">Ripple price (Source: CoinMarketCap)The price of Ripple XRP is currently $0.47. Both the immediate resistance ($0.557) and the significant resistance ($0.725) are present. The levels of $0.8603 &amp; $0.9956 will present the coin with significant resistance if it manages to break these levels.The immediate and critical support, however, is set at $0.25 and $0.23, respectively. It continues to put up a valiant struggle against top-tier cryptocurrencies like Bitcoin, ETH, Solana, BNB, etc. The Ripple cryptocurrency, however, may continue to manage its position, therefore it is an excellent investment option with a fantastic purchasing opportunity, according to the Ripple price prediction.<h3>Ripple price prediction if Ripple wins</h3>In terms of making a credible forecast for the price of XRP in the case of a favorable outcome, it's likely that the altcoin will at the very least surpass its 2018 record high of $3.40.The true interest, however, comes in estimating by how much it will beat its previous ATH, even if achieving $3.40 on its own would represent a gain of 660%. Of course, expecting XRP to soar to $3.40 overnight may not be a good idea, especially given the negative current state of the market as a whole.The 260% gain the market as a whole experienced from January 2018 (the peak of the 2017–2018 bull market) and November 2021 is another piece of data worth considering (the height of the 2020-21 bull market). If XRP beats its previous record high by this percentage, it would eventually cost around $12.24.This is obviously the best-case scenario, and it requires that another bull market of the magnitude of last year's, which is most definitely not a guarantee at the moment. However, a successful resolution for Ripple will almost surely increase the price of XRP somewhat, so it will probably pay to buy some XRP now and hang on.<h2>Bottom lines</h2>Overall, the final outcome of the Ripple vs. SEC case will be decided by Judge Analisa Torres without the need to spend any more time searching through the opposing documents. For this reason, the XRP community is extremely excited as they have been waiting in vain for the past two years.<div class="pr-block-special">Disclaimer: This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

The lawsuit between Ripple and the SEC started at the end of 2020 and has lasted until now. This is considered one of the longest and most controversial lawsuits in the history of the cryptocurrency industry. Let’s find out more in the article below!

Why so much ink has been spilled over SEC vs Ripple lawsuit?