Ripple (XRP) vs SEC
As the Ripple (XRP) vs SEC legal battle moves closer to its final verdict, the crypto world awaits with bated breath. The outcome of this landmark case has the potential to greatly impact the regulation of digital assets in the US, attracting intense interest and speculation from the industry. Don’t miss out on the latest updates and stay ahead of the curve with our comprehensive coverage of the Ripple vs SEC legal dispute and its potential ramifications for the future of cryptocurrency regulation in the US.
“Amid growing concern over the regulation of the cryptocurrency sector, the Securities and Exchange Commission (SEC) has increased its oversight. This has led to criticism from some industry stakeholders who believe that the SEC’s approach may be prejudiced. James Filan, a prominent U.S. defense attorney and commentator on the Ripple and SEC case, has once again called for the resignation of SEC Chairman Gary Gensler in light of these recent updates.”
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) February 13, 2023
As per the regulator, the stablecoin is classified as a security and did not follow the laid down laws upon its issuance. It is worth noting that the SEC is also suing Ripple for selling unregistered securities in the form of XRP tokens.
There are concerns about the SEC’s classification of securities.
In this line, the XRP holder’s attorney in the SEC lawsuit John Deaton called the securities label misleading.
“Gary Gensler and the SEC keep focusing on the token itself, calling the vast majority of cryptocurrencies themselves securities. The problem is that smart influential people, other than Gensler, are pushing this false narrative that tokens themselves are securities,” he said.
Yet, @GaryGensler and the SEC keep focusing on the token itself calling the vast majority of cryptocurrencies themselves, securities.
The problem is that smart influential people, other than Gensler, are pushing this false narrative that tokens themselves are securities.
— John E Deaton (@JohnEDeaton1) February 11, 2023
Elsewhere, Deaton hailed Coinbase CEO Brian Armstrong after he declared that staking services on the platform are not securities.
💯 the only reaction the CEO of the largest and only publicly traded exchange in the United States 🇺🇸 should have 👏 https://t.co/gDsBYYXVYS
— John E Deaton (@JohnEDeaton1) February 12, 2023
“As the cryptocurrency industry continues to evolve, Deaton has joined a Ripple class action lawsuit where investors have accused the company and CEO Brad Garlinghouse of selling XRP as an unregistered security, causing harm to their investments. The plaintiffs are seeking compensation for their losses and have requested that the court classify XRP as a security. Deaton is participating in the case as an amicus brief, offering his expertise and insights on the matter.”
The SEC’s Criticism
“The ongoing Ripple (XRP) vs SEC case has received criticism from Ripple’s General Counsel, Stuart Alderoty, who called it ‘misguided,’ and from Deaton who described the SEC’s arguments as ‘schizophrenic.’ The outcome of the case remains uncertain, but the crypto community has been closely monitoring the SEC’s lawsuit against the blockchain-based platform LBRY. Recently, the judge ruled that LBC tokens offered by LBRY are only considered securities at the time of direct sale.
As a result of the favorable ruling for LBRY, there is growing pressure for the relisting of XRP on crypto exchanges such as Coinbase and Binance US. XRP fans are urging these exchanges to reinstate the token, leading to increased speculation about the success of this movement. However, there is still uncertainty regarding the SEC’s lawsuit and it remains to be seen whether the regulator will prolong the litigation beyond the anticipated timeline for a summary judgment in March 2023.”
Despite the legal uncertainty in the U.S., Ripple has been pushing forward with its growth momentum in other parts of the world.
XRP Price Analysis
By press time, XRP was changing hands at $0.37 with losses of over 4% on the daily chart.
Overall, the prospects of XRP will likely be determined by the case outcomes where a win for Ripple might be bullish for the token and vice versa. On the other hand, if exchanges relist XRP, it could also be a bullish outlook.
The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.