The price of Ripple’s native crypto, XRP has seen much volatility over the last couple of months. Holders expected a late November 2020 surge in XRP prices, but all hope was lost after United States Securities Exchange Commission sued Ripple for an illegal securities offering, calling into question the status of the crypto. Many have argued over both sides of the Ripple-SEC suit, some blamed both parties, SEC regulators and Ripple for making mistakes.
Recently, digital currency lawyer at Anderson Kill, Stephen Palley shared his opinion on how XRP could survive the duration and the aftermath of the legal battle. The crypto lawyer believed that Ripple would need to reach a settlement with SEC because according to Palley, the scenario where Ripple would win the lawsuit, and replace the Howey Test with another new legal identifier for crypto is “delusional.”
Additionally, Palley reviewed another recent lawsuit against Ripple, which was filed by UK investment company, Tetragon. The Financial group said that it was seeking to “enforce its contractual right to require Ripple to redeem” Series C preferred stock held by the firm.
Ripple was quick to call Tetragon’s lawsuit baseless and alleged that the company was taking advantage “of the lack of regulatory clarity” in US.
Palley believed the UK firm’s claims were “another bit of very unwelcome news for Ripple and said:
The problem Ripple is going to run into – and why I think they are basically screwed – is discovery, including contemporaneous documents and depositions.
There’s no universe in which this will help them at all.
Several entities have discontinued support for XRP, following the legal action imposed by SEC. On 5 January, crypto-asset manager Grayscale became the latest entity to join this movement and said it removed XRP from its digital large-cap fund, in the wake of the regulator’s accusations.