Court Case Will Get Resolved  – Real Vision CEO Raoul Pal 

• Raoul Pal explained why he is “long” on XRP
• XRP Price at the time of writing – $0.5189
• The big question is whether or not XRP is a security

Raoul Pal, a former executive at Goldman Sachs, explained why he is “long” on XRP in a recent interview. Pal co-managed the GLG Global Macro Fund in London for global asset management firm GLG Partners (now known as “Man GLG”). 

Prior to establishing the macroeconomic and investment strategy research service Global Macro Investor (GMI) in 2005, Pal worked for GLG Partners. Pal previously held a position at Goldman Sachs, where he co-managed the European equity and equity derivatives hedge fund sales business. 

Bitcoin could one day have a $10 trillion valuation – Pal

He co-founded the finance and business video channel Real Vision in 2014, where he currently serves as CEO. Pal explained why he thinks Bitcoin, which he called “the future,” could one day be worth $10 trillion in the GMI newsletter’s April 2020 issue. Pal said in that issue that the idea of Bitcoin being worth $10 trillion is not so crazy after all.

After all, it is more than just a store of value or currency. It is an entire digital value-based trusted, verified, secure financial and accounting system that can never be created outside of the cryptographic algorithm. It is nothing short of the future of our entire exchange system, as well as of money and the platform on which it operates.

You may recall that the Securities and Exchange Commission (SEC) made the announcement on December 22, 2020, that it had filed an action against Ripple Labs Inc. and two of its executives, who are also significant security holders, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering. This announcement was made on December 22, 2020.

Stuart Alderoty, Ripple’s General Counsel since January 2019, offered his thoughts on the ongoing lawsuit against Ripple on September 21. During an interview with CoinDesk TV’s flagship show, “First Mover,” he made the remarks.

ALSO READ: Terra CEO to lose passport in a month

Ripple & The SEC

Ripple Labs, the company behind the XRP token, and the Securities and Exchange Commission Ripple and the SEC have been at odds since late 2020. The most important question is whether XRP is a security.

The SEC filed a lawsuit against Ripple Labs and two of its executives on December 22, 2020, claiming that the company traded $1.3 billion in its XRP token as security without registering it with the commission. 

Arguments for and against the lawsuit have been made. However, Ripple has vigorously refuted the claims, arguing that the SEC’s evaluation was influenced by bias.

Based on the 1946 decision in SEC v. W.J. Howey Co., the SEC uses the “Howey test” to determine whether a cryptocurrency is a security. 

If an asset is sold with the expectation of profiting from the efforts of other parties, it is considered a security. The cryptocurrency would pass the Howey test based on the commission’s definition of XRP in its lawsuit, and SEC regulations mandate that all securities be registered.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

Latest posts by Nancy J. Allen (see all)