CA-US Law Journal Highlights SEC Vs. Ripple Lawsuit, Says Ripple’s Efforts Drives Part of XRP Value

The CA-US Law Journal provided insight into the ongoing lawsuit between the SEC and Ripple.

The legal tussle between the United States Securities and Exchange Commission and Ripple Labs has continued to garner global attention. Notably, Canada-United States (CA-US) Law Journal highlighted the lawsuit in its recent publication.

In the article, CA-US Law Journal conducted a comparative analysis of securities regulations for cryptocurrencies in the US and Canada.

SEC v. Ripple Case

One of the most important highlights of the report is the legal tussle between the United States SEC and Ripple. The report noted that in December 2020, the SEC charged Ripple and two of its execs with conducting unregistered securities offerings valued at over $1.3 billion.

According to CA-US Law Journal, Ripple, which began distributing XRP in 2013, had sold over 14.6 billion coins as of 2022. Furthermore, the report noted that at the time of its initial XRP offering, Ripple did not provide disclosure statements regarding the company and the cryptocurrency.

“Instead, it had provided only very select information to currently existing investors. The information provided is largely in the form of quarterly market reports that discuss the sales, price, and volume of the cryptocurrency, volatility, and other general insights from the fintech industry at large,” the report read.

Notably, this less transparency creates a riskier environment for investors based on securities regulation.

Additionally, the report pointed out that Ripple’s control over the disclosure of XRP information and the coin’s treatment as an investment were the driving forces behind SEC’s complaint against the blockchain company.

It bears mentioning that the multi-year legal battle is still ongoing, with the presiding judge expected to issue the summary judgment decision at any moment. As reported earlier, pro-XRP lawyer Fred Rispoli speculated that the judge might issue the ruling by next month.

Ripple’s Efforts Drive Part of XRP Value

Meanwhile, the report also focused on other aspects of XRP and the Ripple network. The article noted that XRP value may be driven by Ripple’s ability to enhance, upgrade, and cheapen its network.

“As opposed to the pure, supply-and-demand-plus-labor, totally-market-driven, it-has-value-because-we-as-a-species-decided-it-does, value of a commodity, crypto investors now have to rely in part on the company that owns the currency and the software to do good work,” the article added.

Launched in 1974, CA-US Law Journal was the first academic law journal to explore the complex trade relationships between the United States and Canada.