Conclusion of SEC Proceedings Against Ripple Labs
As the U.S. Securities and Exchange Commission (SEC) officially concludes its legal proceedings against Ripple Labs Inc., the community of XRP supporters, often referred to as the “XRP Army,” is expressing jubilation at what they interpret as validation of their long-held belief that they are on the right path. This sentiment was initially vocalized by Ripple’s CEO, Brad Garlinghouse, in a blog entry back in 2020, where he asserted that the company was aligned with both legal and historical correctness concerning their cryptocurrency, XRP.
Background of the SEC Lawsuit
The SEC initiated its lawsuit in December 2020, accusing Ripple and its executives of conducting a $1.3 billion unregistered securities offering through XRP sales—a claim Ripple has consistently refuted, maintaining that XRP does not qualify as a security. At the time the lawsuit emerged, XRP was trading around $0.56, but its value plummeted by 62% shortly afterward, dropping to $0.21, as reported by CoinGecko.
Community Response and Support
Interestingly, the very SEC lawsuit that could have spelled doom for Ripple inadvertently galvanized the XRP Army, according to member MackAttackXRP. He explained that the SEC’s actions prompted a surge of support for Ripple, with social media playing a critical role in rallying individuals. Notable figures like John Deaton stepped up, providing crucial legal representation for approximately 75,000 XRP holders affected by the lawsuit.
Prior to the litigation, the term “XRP Army” was often used disparagingly by critics who didn’t grasp the fervent loyalty exhibited by the community. In light of the legal struggle, XRP Army member James Rule noted that the group united around their common cause, submitting numerous affidavits to support Ripple’s stance—an effort he described as collective and empowering.
Impact of the Lawsuit on the XRP Community
The SEC’s pursuit of Ripple inadvertently allowed the XRP Army to accumulate more tokens at a lower price, albeit they would have preferred a situation where the lawsuit had never been filed. As the dust settles, MackAttackXRP remarked that the community emerged from this ordeal more cohesive and reinforced in their conviction that they are on the “right side of history.”
This collective confidence echoes Garlinghouse’s earlier assertions, as expressed by another member known as CryptoinsightUK, who stated that while they always believed in their position, it is not validated until a court officially confirms it. With the conclusion of the case, this confirmation has arrived. He also criticized the practice of “regulation by enforcement,” asserting that it disrupts the principle of free markets by improperly favoring certain entities over others.
Broader Implications for Cryptocurrency Regulation
The implications of Ripple’s legal struggle extend far beyond just XRP; they resonate throughout the cryptocurrency market. MackAttackXRP categorized the legal battle as a pivotal episode in the history of American finance, fundamentally influencing the future conduct of cryptocurrency regulation in the United States and beyond.
Now that their prolonged legal adventure is subsiding, the XRP Army looks forward to a period of rest. However, MackAttackXRP assured that the community will soon mobilize once more, preparing to advocate for XRP’s ascendancy.
