No official date has been set for a verdict in the high-profile dispute between blockchain company Ripple and the Securities and Exchange Commission (SEC), but it is widely expected that the litigation will conclude this year. Although Ripple has supporters, it is important to consider the possibility of the SEC’s victory. In the event that the SEC prevails, the implications for the cryptocurrency industry could be significant.
The Downside To SEC’s Win In The Lawsuit
Contrary to established precedent in securities law, the SEC argues that the Ripple-issued XRP token is a security.
This case is part of the SEC’s broader goal to bring the cryptocurrency markets under its regulatory authority through enforcement. SEC Chairman Gary Gensler has stated that Bitcoin is the only cryptocurrency he is hesitant to designate as security. Therefore, a victory for the SEC could have negative implications for the broader cryptocurrency markets.
If the SEC were to win, other cryptocurrencies would likely be compelled to register as securities, and crypto exchanges would likely be required to register under the regulations governing securities exchanges. This would bring the cryptocurrency sector under the SEC’s regulatory purview, potentially creating a difficult and uncertain environment for the industry.
In conclusion, a victory for the SEC could have detrimental effects on the cryptocurrency sector which has already been through so much. This would be like removing the last line of protection for the industry.
Who’s Likely To Take The Win?
There is now conjecture about the case’s potential outcome. While some in the sector have suggested that the verdict could be in favor of Ripple, U.S. Attorney Jeremy Hogan, however, believes that Ripple and the SEC have almost equal odds of success in the case.
Meanwhile, a recent Twitter survey by XRP enthusiast and crypto lawyer John Deaton showed that the majority of the community is in favor of resolving the issue. Although the lawyer did emphasize how unlikely a settlement with the SEC is.
Now that the closing arguments have been presented by both sides, we are all anxiously anticipating the court’s decision.
Source: https://coinpedia.org/news/ripple-will-secs-victory-will-drag-the-cryptocurrency-market-to-worst-condition/