The lawsuit between Governmental agency the SEC and Ripple, the company behind the well-known cryptocurrency XRP, is reaching its end. Crypto community members, legal experts and former SEC lawyers have been discussing the most probable outcome of the case.

Recently during an Unchained podcast interview, Jason Gottlieb, a partner at Morrison Cohen said that the SEC cannot charge Ethereum founders with offering an unregistered security due to the five year statute of limitations in place.

This led an XRP community member to raise a question regarding why Ripple didn't use the same five year statute of limitations argument as a defense in the case since XRP was first issued in 2012 and the case was filed in 2020, which adds up to an eight year difference.

Marc Fagel, former SEC lawyer, responded saying that this case is not barred by the five year statute of limitations due to the fact that the SEC is accusing the defendants of continuing to sell XRP as part of an unregistered security offering until 2020. He asserted that any monetary recovery would be limited to the five years before the SEC officially charged Ripple with violating securities laws.

Bill Morgan, a pro-XRP lawyer, questioned the outcome in the case of Judge Torres finding the XRP sales from 2012 to 2015 as Investment Contracts. Marc Fagel commented that if this were to happen, early XRP investors would get non-monetary relief, such as the injunction of some bars. It is still not known if this would apply retrospectively.

Regardless of the findings, the Ripple v. SEC case will bring more clarity to the role of SEC in the cryptocurrency market. Until then, people will keep speculating on the outcome of the case.



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