On the occasion of the recent elements in the standoff between the SEC and Ripple, we return to the origins of these legal disputes. When did these disputes begin?
Ripple against the SEC: the origins of the showdown
For several years now, the news of the cryptocurrency ecosystem is punctuated by twists and turns regarding the conflict between Ripple (XRP) and the Securities and Exchange Commission (SEC). On Thursday, these disputes saw a big breakthrough with a partial victory for Ripple, although there could still be a long way to go before the outcome.
Despite everything, this is an opportunity to return to the origins of this arm wrestling which took a crucial turn on December 22, 2020when the federal authority filed a complaint against Ripple, Chris Larsen, co-founder of Ripple Labs, as well as Bradley Garlinghouse, CEO of the company.
The two concerned were thus accused of havingpersonally profited from around $600 million from their unregistered sales of XRP“. In addition, the company is accused to have raised $1.38 billion in tokenswithout meeting the requirements of United States securities laws.
On the other hand, while the complaint dates back two and a half years now, the tensions actually began to appear more than 10 years ago. And for good reason, Ripple was informed as early as 2012 that its offer of XRP to institutional investors could pose a problem:
“The October 2012 legal memo also advised Ripple and Larsen to contact the SEC for clarification as to whether XRP was a security under federal securities laws. »
👉 To go further — What are Ripple and its XRP token?
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A disturbed previous bull run
At the time of the SEC filing against Ripple, the cryptocurrency market was in the midst of a bull run. Nevertheless, this did not prevent XRP from losing almost 78% of its value in a few weeksgoing from 0.49 to 0.17 dollars in the space of a few weeks.
Despite everything, the asset will have been able to recover by resuming its bull run to peak at almost $1.97 in April 2021, before the market experienced its first stall. For this reason, the price of XRP will not have been able to exceed its previous all-time highwhich took place at nearly $3.32 on January 4, 2018.
Thus, the price of the asset has since tended to vegetate in recent years compared to the rest of the cryptocurrency ecosystem, although its 4th place in the capitalization ranking and its 68% increase over the last 24 hours are noteworthy.
👉 Also in the news — Victory of Ripple’s XRP: what lessons can be learned for the cryptocurrency ecosystem?
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Source: Original SEC Complaint
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