The ongoing legal battle between the Securities and Exchange Commission (SEC) and Labs took a new turn this Tuesday, as attorney John Deaton, representing over 75,000 XRP investors, publicly criticized CNBC for its coverage of the case. Deaton raised concerns about CNBC’s past promotion of XRP as a non-security, speculating about potential bias due to the network’s association with former SEC Chairman Jay Clayton.
The lawsuit against Ripple has been causing considerable instability in XRP’s market status, a situation that was further exacerbated by Coinbase (NASDAQ:)’s recent decision to delist XRP. Deaton’s critique comes amidst these market disruptions and points to what he perceives as a lack of balanced reporting on the issue.
In a significant development last week, the court dismissed the SEC’s expert testimony in the case. This dismissal was made possible due to the intervention of XRP holders who were granted an Amicus (NASDAQ:) Curiae status. The court cited 3,000 affidavits from XRP holders and Ripple’s programmatic sales as evidence of non-securities.
Looking ahead, the lawsuit is set to enter a new phase with a trial against Ripple executives scheduled for Q2 2024. In addition, the SEC has submitted an interlocutory appeal in the case. Both developments suggest that this legal battle is far from over and will continue to influence XRP’s market status in the coming months.
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