The lawsuit filed by the Securities and Exchange Commission (SEC) against Ripple has lasted longer than many observers anticipated. It was anticipated earlier on in the year in the course of the legal fireworks between the regulated and the cryptocurrency company that there would be a sort of out-of-court settlement, but this was not to be be.
Nevertheless, it seems that SEC may be more amenable to some sort of settlement at this time due to obvious reasons: the agency has realized that the move against Ripple is not a popular one from the political point of view.
In a recent, tweet, the CEO of Ripple, Brian Armstrong highlighted this after making a reference to a recent Forbes publication in which the magazine highlighted some of the hurdles faced by SEC in its bid to have Ripple’s XRP declared an unregistered security.
The Ripple case seems to be going better than expected. Meanwhile the SEC is realizing that attacking crypto is politically unpopular (because it harms consumers). https://t.co/ePLnbqNLwU
— Brian Armstrong (@brian_armstrong) October 26, 2021
The December 2020 lawsuit filed by SEC was expected to be a walk-over for the agency, but things took an unexpected turn as the Ripple legal team practically seem to have put SEC itself on trial. No thanks to the massive support that Ripple Labs, the company behind the ripple currency enjoys from the cryptocurrency and blockchain community.
The backlash that SEC has received is not surprising. US lawmakers can attest to the popularity of the crypto space after a recent crypto tax law. The essence of the SEC suit points to the allegation that Ripple Lab’s XRP is an unregistered security and that its public sale of the ripple token is an unauthorized sale of an unregistered security.
The impression that the SEC and other antagonists of the Ripple Labs token sale are of the opinion that the company practically minted money out of thin air. However, the court proceedings have made it obvious even to the regulator that the case won’t be a walk-over.
Reacting to a Forbes publication on the case, Armstrong wrote on Twitter:
The Ripple case seems to be going better than expected. Meanwhile the SEC is realizing that attacking crypto is politically unpopular (because it harms consumers).