If you haven’t read the previous episode of this series, read it prior to reading this for a better understanding.
- A settlement seems the most probable outcome for the lawsuit, but many believe it could fall in the favor of Ripple simultaneously.
- Ripple seems to perform well in the lawsuit, the CEO of Ripple expects the lawsuit to come to a closure by 2022.
- SEC might acquire regulation power over the complete crypto industry, if Ripple loses.
The vast majority of reactions and community support were seen all around the social media platforms during the initial hearings of the lawsuit filed by the SEC against XRP. Even though there wasn’t even the slightest hint of what’s gonna happen, the users on social media kept talking and making assumptions. Most of the user’s over Twitter believed that Ripple will do good in the lawsuit and expressed this in several tweets.
The sentiments of the user somehow seemed to affect the prices of XRP at the time. XRP showed an uptrend of 16.2% on the day of the hearing
Community Tweets
- A tweet from attorney Jeremy Hogan, on April 30, the day of the hearing, said “Congratulations XRP People. By the start of the hearing today the telephone system MAXED OUT at 4k listeners! The Court is very aware of the “High Interest” in the case (quote from Judge Netburn). MISSION ACCOMPLISHED! I need to finish up some pleadings and then home to video!”
- Another tweet from attorney Seal Nulliah stated “Ripple lawyers just pointed out that the #SEC hid their actions from #Ripple, hid it from Foreign Regulators, and most egregiously hid their actions from this Court! #boom”.
- Several other tweets from the community showed mixed emotions, some pointing that SEC is in an Elephant trap, some believing SEC is hiding something as it refused to release documents, while others saying SEC itself is responsible for the manipulation of XRP prices.
Closure Expectations
The lawsuit has been a hot topic ever since. Multiple hearings took place and many arguments were brought to light. However, many believe that Ripple will come out on top. Recently, the CEO of Ripple, Brad Garlinghouse, also said that he expects to have a conclusion by next year. He also believed that the judge involved in the lawsuit acknowledges that it’s not just about Ripple but also about the complete crypto industry and thus is asking good questions.
Community Expectations
Many believe that XRP might win and some also believe that XRP might lose, whereas a lot of community members believe that both parties might come to a settlement. An online cryptocurrency content creator, even said in a tweet on 16 Dec 2021 that “#XRP wins its court case VS the SEC. The SEC is a school yard bully at this point and is doing anything but protecting investors. The Ripple victory would be a net positive for the industry.”
Summing Up
If Ripple wins, as per John Deaton, a former marine and owner of Deaton Law firm, Bitcoin and XRP are the only ones that will be safe from securities regulators. Although nothing could be concluded yet. If Ripple wins, it might turn out to be a revolution for the crypto industry, or clear guidelines and definitions of what a security is and how investment contracts are involved could be published. If Ripple loses, there are chances that SEC might gain regulatory authority over the crypto industry, as wanted and hinted by SEC itself, or it may lead to other cryptocurrencies being analyzed thoroughly.
However, if Ripple loses, there might be consequences affecting XRP and its market. The same will happen if Ripple wins. Nothing can be predicted but the analysis would give an idea of what is most probable and how Ripple might work if losses or wins. This all will be discussed in the next episode.
Source: https://www.thecoinrepublic.com/2022/10/05/ripple-vs-sec-community-reaction-closure-expectations/