Turkish lire; Dr
- Yassin Mubarak, founder of Crypto VC, suggests that the SEC may withdraw its case against Ripple to avoid negative exposure.
- He believes that the regulator is using litigation to maintain uncertainty in the cryptocurrency sector.
- The legal dispute between Ripple and the SEC began in December 2020, with Ripple recently winning when its appeal was denied by the SEC.
Can the SEC raise the white flag?
Yassin Mubarak – founder of private equity firm focused on technology startups, Deezer Capital – Believes The US Securities and Exchange Commission (SEC) can withdraw all charges against Ripple and its CEO, Brad Garlinghouse.
According to him, it is not in the interest of the regulatory body to hold a trial “where their corruption could be exposed.” Mubarak also claimed that XRP has increased visibility in the cryptocurrency market, which could jeopardize the SEC’s agenda.
“They will now move to end this case as soon as possible so that they can appeal to the Second Circuit and continue to maintain this cloud of uncertainty over the entire industry. “Litigation itself, regardless of its outcome, is a weapon,” he concluded.
Most X users who commented below the post doubted the existence of such a scenario given the SEC’s decision in previous cases. Some expected that the Commission would not withdraw in favor of Ripple, but would try to delay the decision for as long as possible.
A brief summary of the Ripple v. SEC Saga
The lawsuit between the two entities has been going on for more than three years after the agency filed a lawsuit against Ripple in December 2020 for allegedly trading billions of dollars worth of XRP as securities without registering with the commission.
The legal battle went through several heated moments until it came to a head in July of this year. At that time, an American court to rule Most of Ripple’s sales of XRP do not constitute an offer for investment contracts. The SEC was not satisfied with the decision and formally appealed it last month.
However, Judge Torres recently denied this request, awarding Ripple another historic victory against its great enemy. she also hiring April 23, 2024, as trial date.
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