One of the many cryptocurrencies that rose to the challenge during the initial boom of cryptocurrencies was Ripple. While it did not make it to first place, it did manage to make it in the top three. And even though it still struggled during that time, it was a force to be reckoned with.
However, over the years, Ripple eventually lost the critical acclaim that it gathered over the years. It even lost a lot of its original influence when a lot of its customers started to move to different platforms and cryptocurrencies. VBut 9one of the major reasons for clients stepping aside was the Lawsuit from the SEC.
The court case between Ripple and the SEC reached its first anniversary this month. It has officially become a year since the SEC has tried Ripple. And about a year since bulls from the market have been trying to have their say in court. And it was on the day of the anniversary that these bulls took a very serious hit.
Investors of what was once one of the most popular cryptocurrencies in the market had to look on in awe as the court closed the gates on their possibility to testify on behalf of ripple. It became another speed bump on the road to finally freeing Ripple from the court.
The SEC made the first argument against Ripple in December of 2020. Here they argued that Ripple is not a currency but it is rather an asset. Therefore, offering their tokens to the general public is an unregistered securities offering, and is against the law. So far, that remains the main issue since the past year. The court remains convinced that Ripple is not a currency, and investors were looking to prove it otherwise in court.
But by giving the official order, the court was able to single-handedly stop a lot of investors from testifying in court. Many also believe that this court case is actively hindering the XRP prices in the market.
Since the initial argument from the SEC, there has been a multitude of steps in the right direction for Ripple. Judge Sarah Netburn sided with the cryptocurrency and argued that it was a currency that offered a specific utility. This was the massive boost that Ripple needed to move forward in the case.
Of course, one other thing did happen that was not as great for Ripple. More specifically, the release of fake news throughout the internet that the SEC was dropping the case gave some ammunition to the SEC as well. However, Ripple made all the right moves by distancing itself from the fake news as soon as possible.