Ripple, a major player in the crypto industry, continues to battle legal issues in the United States. The company is currently seeking an extension of time to respond to the Securities and Exchange Commission's (SEC) cross-appeal brief in their ongoing lawsuit. The SEC's cross-appeal seeks to overturn the court's decision that granted Ripple access to the SEC's internal communications on Bitcoin and Ethereum.
The SEC and Ripple have been locked in a legal battle since December 2020. The SEC sued Ripple alleging that its XRP token was a security and that the company should have registered it as such. This lawsuit has seen a series of legal maneuvers from both sides, with Ripple scoring a few significant victories. One of these was the court's decision mentioned earlier that granted Ripple access to the SEC's internal discussions on other major cryptocurrencies. This decision could potentially help Ripple's case, as it may reveal whether the SEC considered Bitcoin and Ethereum to be securities.
However, the SEC has since cross-appealed this decision, arguing it was incorrect and should be reversed. In response, Ripple has requested an extension to prepare a more comprehensive reply to the SEC's cross-appeal. The company argues that the SEC's cross-appeal raises new issues of law that require further investigation and analysis, hence the need for more time.
While the legal battle continues, Ripple's XRP token remains active and is one of the top-performing cryptocurrencies in the market. Despite the ongoing lawsuit, the crypto asset has shown resilience, and it's not just Ripple that is feeling the effects. The outcome of this case could have significant implications for the larger crypto industry, especially concerning how cryptocurrencies are classified and regulated in the United States.
The ongoing legal tussle between the SEC and Ripple is a clear example of the growing tension between the emerging blockchain industry and regulatory bodies. The outcome of this case could set a precedent for how other cryptocurrencies are treated by regulators, which is why it is closely watched by stakeholders in the crypto space.