Yassin Mobarak, the founder of Crypto VC firm Dizer Capital, has suggested that the United States Securities and Exchange Commission (SEC) may withdraw its case against Ripple and its CEO Brad Garlinghouse. Mobarak believes that the regulator uses litigation as a means to maintain uncertainty in the crypto sector. He argues that it is not in the SEC’s interest to have a trial where their potential corruption could be exposed. According to Mobarak, XRP has brought clarity to the crypto market, which threatens the SEC’s agenda. He concludes that the SEC will likely try to end the case quickly and appeal to the 2nd circuit in order to sustain uncertainty in the industry.
The legal dispute between Ripple and the SEC has been ongoing for over three years. The SEC sued Ripple in December 2020, accusing the company of trading billions of dollars worth of XRP as a security without registering with the Commission. The lawsuit has had several significant moments, with a US court ruling in favor of Ripple in July of this year. However, the SEC appealed this decision, only to have the appeal request dismissed by Judge Torres. The trial date has been set for April 23, 2024. While some skeptics doubt the possibility of the SEC dropping its charges, Mobarak’s prediction raises the question of the regulator’s motivations in the case.
#SEC #Ripple #cryptocurrency #litigation #cryptoindustry #XRP #clarity #regulation
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