The ongoing legal showdown between the Securities and Exchange Commission (SEC) and Ripple has captured the attention of the industry’s experts, who are now in a divided stance on the potential outcome of this high-stakes battle.
What do they have to say? Read on!
SEC vs. Ripple: A Recap
Back in December 2020, the SEC threw the first punch, accusing Ripple of unlawfully issuing securities through their XRP tokens. A significant turning point arrived in July when the presiding judge ruled that while private sales of XRP didn’t breach securities laws, the classification of institutional sales as securities was a possibility.
Tug of War Continues
Following this partial victory, the SEC launched an appeal to challenge the decision. Ripple’s legal team countered by arguing that the SEC failed to prove XRP’s security status using the Howey test, a tool for determining the classification of financial assets.
Read More: It’s Time for Higher Courts to Weigh In: Judge Torres, Ripple, SEC, and Terra’s Legal Standoff
Ripple’s Fate Hangs in the Balance
Experts have shared their impartial perspectives on the Ripple vs. SEC clash. It’s crucial to note that their opinions stem from independent analysis and not legal counsel.
Alexander Goodman, the mastermind behind GCrypton, has stepped into the ring, showing support for the SEC. According to him, the courts might favor the SEC, giving them an edge over Ripple. Nevertheless, he acknowledges the robust arguments put forth by Ripple.
Conversely, Dmitry Noskov from StormGain, a prominent crypto exchange, predicts that the court will uphold the initial partial victory. He points to the extended history of the trial and the lack of substantial examination as factors contributing to this outcome.
Nikolai Zhuravlev, CEO of CFA.RF, aligns himself with the notion that Ripple has a fighting chance to challenge the SEC’s assessments.
Gracie Chen, hailing from the Bitget exchange, radiates optimism about Ripple’s position.
Diverging Opinions Persist
However, Anton Nozdrachev, co-founder of 1EX Trading Board, proposes an alternative view, suggesting that the SEC aims to collect fines rather than destroy Ripple, as fines could provide financial relief for the treasury.
Everyone is Rooting for You, Ripple
Irrespective of the final verdict, one element remains unequivocal: a considerable majority stands by Ripple. Their steadfastness in navigating these stormy waters with persuasive arguments has garnered significant support.
The bigger issue is, that if the SEC prevails over Ripple, experts predict a negative precedent. Worse maybe that crypto companies may leave the United States due to regulatory scrutiny. This tectonic shift could cast doubt on many cryptocurrencies, prompting issuers to seek more favorable markets. Furthermore, a victory for the SEC could trigger a significant price drop across the cryptocurrency market.
Read More: Top Reasons Why XRP is About to Become Way Bigger Than Everyone Thinks
Source: https://coinpedia.org/news/decoding-the-ripple-vs-sec-case-expert-forecasts-on-the-verdict/