TL;DR
- The lawsuit between Ripple and the SEC is approaching a crucial trial in April 2023, with potential long-term impacts on the cryptocurrency sector and possibilities of extended legal battles through appeals.
- Ripple has gained key partial legal victories, but the final outcome and its implications are still uncertain.
Could We See the Conclusion This Year?
The lawsuit between Ripple and the United States Securities and Exchange Commission has been among the trendiest topics in the cryptocurrency industry for years. It dates back to December 2020, when the agency accused the company of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP.
For its part, Ripple argues that its native token is a currency rather than a security and thus does not fall under the SEC’s jurisdiction.
The case is reaching its last chapter – a grand trial scheduled for April 2023, whose outcome might significantly impact the entire cryptocurrency sector. However, the beginning of the courtroom battle does not necessarily mean that the end of the dispute is around the corner. As such, we decided to ask ChatGPT if a resolution is likely to be observed before the end of the year.
The AI-powered chatbot estimated that a final judgment is expected in the summer of 2024. On the other hand, it is important to note that appeals could delay the outcome potentially until 2026:
“This means that while a decision might be reached this year, the overall legal battle could extend further due to the appeals process.”
In addition, the case has been adjourned “sine die,” which translated from Latin means “without a date.” Another factor hinting that the battle might be nowhere near its end is the SEC’s determination to win at all costs and appeal each unfavorable (for its part) ruling. Earlier this week, the popular X (Twitter) user Mr. Huber presented a flippant scenario in which the Commission drags the lawsuit for an additional decade.
ChatGPT claimed that a resolution is still possible this year, assuming both parties shake hands on a mutual agreement:
“Like many legal disputes, there’s always a possibility of settlement before a final verdict, which could be seen as a victory for Ripple if the terms are favorable.”
Who has the Better Chance?
Ripple seemingly enters the upcoming trial as the top dog, securing three vital (yet partial) court wins last year. The first occurred in July when Judge Analisa Torres ruled that the firm’s programmatic sales to secondary trading platforms did not constitute offers of investment contracts.
The magistrates later dismissed the SEC’s wish to appeal and cleared Ripple’s CEO – Brad Garlinghouse – and Executive Chairman – Chris Larsen – of all charges brought by the watchdog.
The regulator achieved a small victory earlier this year when Judge Sarah Netburn ruled that Ripple should disclose important financial records for 2022 and 2023 (as insisted by the Commission).
