The court case pending between RippleLabs and the SEC (U.S. Securities and Exchange Commission SEC) is very popular subject into a crypto world last times. There has been increasing talk of a growing positive scenario for Ripple thanks, among other things, to the testimony of SEC member William Hinman, which undermines the official position of the SEC.
- The SEC's primary allegation against RippleLabs was its failure to register the sale of Ripple cryptocurrency as a security;
- Hinman's emails contain explicit statements in which the former SEC chairman indicates that cryptocurrencies are not securities. Hinman also gave a speech in 2018 in which he indicated that Ethereum is not a security. However, the SEC pressed Judge Sarah Netburn not to allow Hinman's post as evidence in the case;
- If the court were to recognize the Ripple XRP token as a security, it would create significant regulatory difficulties for the entire cryptocurrency industry because it would require a) every holder of the cryptocurrency to be known by name, which complicates blockchain technology, and b) all other cryptocurrencies would be similarly affected;
- The judge, despite the SEC's pleas, allowed materials that could sink the SEC's position Hinman's news strongly undermines all of the SEC's underlying actions in declaring Ripple a security. In the face of these facts, we can assume an increased likelihood of a settlement scenario favorable to Ripple;
- RippleLabs' goal is to defend the position that Ripple is not and never has met the conditions of being a security
The Ripple token has practical applications primarily in cross-border and interbank payments, as indicated by a report by Goldman Sachs analysts, among others. Ongoing lawsuit hinders developers of blockchain.
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Open account Try demo Download mobile app Download mobile appRipple is one of the few cryptocurrencies to be fully compliant from the start and designed to be applicable to ISO20022, a new interbank settlement standard that is expected to displace the outdated SWIFT system by 2025; creators are also taking steps to implement Ripple technology for CBDC central bank digital tokens intended to displace fiat money;
Investors have been more cautious around the Ripple cryptocurrency (XRP) due to the ongoing dispute with the SEC as a key risk factor for the overall project. At the same time, the cryptocurrency continues to remain in the top10 largest cryptocurrencies in the world. The cryptocurrency is currently trading at January 2021 levels, making the token gain about 300% since the start of the cryptocurrency bull market, which is relatively small compared to the 'loudest projects';
Despite its ongoing lawsuit with the SEC, Ripple continues to invest in network development and new partnerships while focusing on its FinTech business. A potentially successful conclusion to the legal battle with the SEC could be positively reflected in the price of the Ripple token and the cryptocurrency market as a whole; it could also herald a softer stance by US regulators towards the cryptocurrency market;
The settlement could come into effect as early as April, but if the SEC does not decide on it, the likely conclusion of the case will take place later this year. According to the CEO of RippleLabs, the lawsuit brought by the US Securities and Exchange Commission (SEC) "is going remarkably well", he also stressed "This case is important, not only for Ripple, it is important for the entire cryptocurrency industry in the United States".
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