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Here’s Why the SEC Removed Ripple Lawsuit Announcement from Its Website

Here’s Why the SEC Removed Ripple Lawsuit Announcement from Its Website

TimestabloidTimestabloid2020/12/21 16:00
By:By Zaccheaus Ogunjobi

The United States Securities and Exchange Commission (SEC) recently took down the press release related to its lawsuit against Ripple from its official website. This unexpected move has led to widespread speculation within the crypto community, with some believing it signals a potential resolution of the case. However, further analysis suggests a different explanation.  

SEC’s Removal of Ripple Lawsuit Announcement  

A well-known cryptocurrency analyst, Ash, recently highlighted this change in a post on X, drawing attention to the absence of the Ripple lawsuit from the SEC’s litigation release section. This website’s section typically contains details on civil actions the SEC has initiated in federal courts. A search for “Ripple” now yields no results, raising questions about the status of the legal battle.  

The lawsuit , originally announced on December 22, 2020, involved the SEC accusing Ripple of unlawfully selling XRP as an unregistered security. Given the commission’s recent removal of the lawsuit’s announcement, many in the crypto space speculated that the case may have reached a settlement or been dropped altogether.  

Reason for the Removal

Despite widespread speculation, the Community Notes feature on X provided additional context, clarifying that the withdrawal of the announcement does not indicate a resolution. The SEC’s decision to take down the press release is tied to the fact that the lawsuit has progressed to the Court of Appeals for the Second Circuit.  

The litigation release section of the SEC’s website generally focuses on cases still being handled in federal district courts. When a case moves to a higher court, the SEC often removes it from this section. This is not an isolated incident, as similar removals have been noted in other cases that advanced to the court of appeals, including an enforcement action involving Aaron Govil.  

Ripple Lawsuit Continues in the Second Circuit

Contrary to speculation about the case’s resolution, the legal battle remains active. The SEC is continuing its appeal against the district court’s previous ruling, which had granted Ripple a partial victory regarding certain XRP sales. On January 15, 2025, the SEC submitted its opening appeal brief to the Second Circuit, seeking to overturn the lower court’s decision on Ripple’s programmatic sales and other distributions of its native token.  

Ripple, on the other hand, is preparing to submit its response on April 16, 2025. If the court grants approval, Ripple will present arguments defending its previous victory while challenging the district court’s classification of its XRP sales to institutional investors as investment contracts. This ruling had initially led to a $125 million penalty imposed on the company in 2023.  

The SEC’s removal of the Ripple lawsuit from its website should not be interpreted as an indication of a settlement or case dismissal. Instead, it is a procedural action related to the case’s progression to the Court of Appeals for the Second Circuit. Both parties are set to present their arguments in the coming months, with Ripple aiming to reinforce its earlier victory while contesting the penalties imposed on its institutional sales.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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