Ripple Labs is a crypto-related business and blockchain enterprise. The company has been in a legal tiff with the securities and exchange commission of the United States since last year. Despite the ongoing legal battle from a federal agency, Ripple Labs native token XRP has been doing well. XRP is currently the 6th largest cryptocurrency in the world by market cap.
Recently, speaking to Fox News, the legal team that is handling the case for defendants claimed that they are not looking for a settlement. Charles Gasparino is a journalist and correspondent of Fox Business Network. He recently had a detailed interview with the Ripple Labs lawyers. Commenting on the interview, he tweeted that Ripple Labs has no plans to opt for a settlement given the current circumstances.
The Ripple Labs vs SEC case has been referred to time and again as a benchmark that the state and the centralized government aim to set for the entire crypto space. Many legal and financial experts believe that if SEC can get a favourable ruling in this case, it will pave the way for a stringent regulatory environment for other crypto enterprises as well.
Gary Gensler is the new SEC chief appointed under the Biden administration. He has claimed on several occasions that under his reign, the regulatory watchdog is preparing to bring more lawsuits related to cryptocurrencies. He also addressed congress recently and claimed that many decentralized tokens are unregistered securities and SEC lawyers are ready to bring hundreds of lawsuits about the matter. Defence lawyers at Ripple also claim that Gensler needs to understand that this case is going to hinder the process of progress and innovation in the field of finance.
Ripple Labs Tried to Settle with SEC in the Past
The topmost executives of Ripple Labs, Brad Garlinghouse and Chris Larson, are the main defendants in the $1.3 billion unregistered securities case. Garlighouse mentioned in a tweet in January 2021 that his legal team tried to settle the case before with SEC. He was also recently questioned upon this matter.
He responded that the main reason behind the case still going on in the court is not clear, and it should be clear that Ripple Labs has tried to do so many times. He also added that the shareholders of Ripple Labs are providing strong support to the company. In the end, he claimed that the main goal of Ripple Labs is to ensure that the XRP community can keep trading and doing business without the fear of any legal hassles.