If the legal battle between Ripple and the Securities and Exchange Commission were adapted into a movie, it would have a high probability of winning an Oscar. The case is filled with unexpected twists and turns that occur daily, sometimes even indirectly.
Recently, Ripple's legal chief was compelled to clarify a partial ruling they received, adding another layer to the story. A compelling backdrop could enhance the overall narrative.
The legal battle between Ripple and the SEC began in late 2020 when the SEC accused Ripple of selling unlawful securities. Despite being almost three years old, the case remains unresolved.
However, the latest update in the XRP lawsuit revealed that it is no longer considered security. The presiding Judge ruled that XRP does not fall under the category of securities based on several factors. This decision caused a significant increase in value for not only XRP but also other cryptocurrencies.
Numerous cryptocurrency companies facing similar legal issues as the SEC and Ripple case are utilizing it as a reference. Terraform Labs, for instance, attempted to utilize the Ripple case as a reference in their lawsuit, but the Judge rejected it. This development caused a stir in the crypto industry, with many investors uncertain about the safety of their XRP investments.
Due to the increasing tensions, Stuart Alderoty, Ripple's Chief Legal Officer, had to take to Twitter to alleviate the situation. His explanation of the recent development might have a much-needed calming effect.
Ripple Legal Chief Makes Clarifications
Stuart Alderoty, Ripple's Chief Legal Officer, immediately clarified the situation on Twitter, saying that the latest ruling on Terraform Labs doesn't affect the current status of XRP.
"Let me be clear about some confusion going around – the ruling in the Terra case changes NOTHING about the Ripple ruling that XRP is not a security," Alderoty said.
He further went on to explain why the latest Terraform Labs ruling won't have any effect on XRP. He said the reason why the Judge made the ruling on Terraform Labs is because of the standard procedure in the law court.
Apparently, in this case, the law court is supposed to accept what the SEC alleges as accurate in the first stages.
"The Terra case is just starting, and the Judge has to accept everything that the SEC alleges as true (for now). Our ruling came after a full factual record (developed over 2+ years) was presented to the Court," Alderoty clarified.
In other words, the new ruling from the SEC case with Terraform Labs does not mean anything. It is just part of the process.
XRP Price Update
XRP hasn't been doing well in the market within the past few days. It has been fluctuating heavily in the market. Perhaps, it is making some retracement before it goes on another bullish trend.
The price of XRP at the time of writing is off. The price is less than $0.70 and has been down by close to $1 in the past 24 hours. Over the past week, things aren't looking good, too, for XRP. It has decreased by more than 1%. However, the cryptocurrency still manages to hold on to its monthly gains at more than 43%.