Ripple Labs is locked in a legal struggle with the Securities and Exchange Commission, which it appears to be winning. Ripple has won a number of tiny victories in the case, which could help it establish that its XRP token is not a security, as the SEC contends. A WhiteHouse report could erase all of this in the coming months.
Fox Business journalists Charles Gasparino and Eleanor Terrett disclosed in a recent tweet that their sources close to the SEC’s litigation against Ripple predict the upcoming White House study on cryptocurrency could classify XRP as a security. According to these sources, the SEC may be delaying the matter until the summer of this year, when the crypto report is expected to arrive.
While the specifics of this assertion are unknown, the cryptocurrency market anticipates a White House executive order this month. The Biden administration said last month that it was preparing to issue an executive order on encryption as a matter of national security.
The latest development has skeptics in the XRP community. Members of the community who have been closely monitoring the situation have questioned if a presidential order could override a pending court lawsuit. Mickey B Fresh, an XRP fan and YouTuber, said that an executive ruling would have little impact on the court case due to the checks and balances of the three branches of government.
Twitter user “TAIGxrp” chimed in, pointing out that the White House lacks the jurisdiction, if any, to declare XRP as a security while it is embroiled in litigation. In recent weeks, the judicial battle between Ripple and the SEC has gathered traction. Several key rulings have been made in response to motions filed by both parties.
The most recent motion to be decided was one that denied Ripple’s request to seal some documents from public view. The document, which includes communications between Ripple officials and other parties, was ordered made public by the court. Previously, the court ruled that the SEC was obligated to turn up documents that it had designated as non-disclosable due to Deliberative Process Privilege (DPP).
Ripple has showed amazing tenacity in the face of regulatory pressure. Following the failure of its Series C financing round in 2019, the financial business announced a share buyback late last month. Ripple’s valuation has risen to $15 billion as a result of the $200 million buyback.