Investors of Ripple and XRP initially believed they had won a lawsuit against the SEC after Judge Sarah Netburn of the United States ordered the SEC to publish the document on January 13. However, SEC director William Hinman stated that Bitcoin and Ethereum are not securities. Now, the SEC has pushed back by demanding more time to discuss the disclosure order and Netburn is now giving a committee of almost four weeks to do so.
The SEC sued Ripple Labs and its two senior executives in December 2020, claiming that the sale of XRP was an unregistered securities offering of over USD 1.38 billion. In its defense, Ripple labs claims that the SEC did not provide a “fair notice” to treat XRP tokens differently than Bitcoin or Ether.
The SEC’s lawsuit vs Ripple carefully monitors the possibility of legally defining XRP and many other cryptocurrencies, as the United States and many countries around the world are still developing regulatory frameworks for cryptocurrencies.
