Connect with us
Active Currencies 14910
Market Cap $2,248,631,224,673.40
Bitcoin Share 50.70%
24h Market Cap Change $1.53

SEC, Ripple lawsuit: What will the impact of the judgment be on XRP?

2min Read

Share this article

It’s been an interesting few months for Ripple and XRP, with the two at the center of a contentious lawsuit filed by the United States Securities and Exchange Commission back in December. In fact, the initiation of the lawsuit alone had a grave impact on the market. Not only was XRP delisted from a host of exchanges after losing much of its value in the immediate aftermath, but Ripple too saw a significant decline in its volumes.

At press time, however, the cryptocurrency had seemingly recovered on the price charts. Ergo, the question – What will the impact of an unfavorable judgment be on Ripple and XRP?

Popular attorney Jeremy Hogan offered a response to the same during a recent interview. Citing the ruling in the Kik Interactive case as the “worst-case scenario,” Hogan argued that a similar judgment will definitely not be a deathblow to Ripple, and XRP will certainly not fall down to “nothing.”

In the aforementioned case, the defendant was fined 10% of what it raised in the disputed ICO, with the court also ruling that Kik Interactive will have to agree to comply with SEC securities laws and can only sell the Kin token to accredited investors. If a similar judgment is passed in the present case involving Ripple and XRP, according to Hogan, “it wouldn’t put it out of business.”

“The worst-case scenario from past cases is not that horrible.”

The attorney also reiterated the assertion that the most likely scenario will be a settlement, with Hogan claiming that Gensler’s term as SEC Chairman will open the door to such a possibility even more.

He also alluded to the fact that just a few days ago, Judge Sarah Netburn reportedly highlighted the utility of XRP as a currency, rather than as a security, an observation that touches upon the crux of the SEC’s case. However, it’s worth noting that Judge Netburn isn’t the primary judge in the case. Instead, she is merely assisting Judge Analisa Torres with a few aspects in the discovery phase of the trial.

Finally, while Ripple’s recent sales may be alright, it’s going to be difficult assessing them the older they are, with disgorgement likely to come into play here. Hogan concluded,

“Ripple is looking really strong as far as current and future sales are probably not sales of securities. Now, if you go back to 2014, 2015, or 2016, now you have more of a problem.”

Share

Jibin Mathew George is Editor-in-Chief at AMBCrypto. A domain expert in International Relations (European Politics), he has always been a believer in the unlimited possibilities afforded by blockchain and by extension, cryptocurrencies. As someone who has been watching and writing about this space for over 5 years now, Jibin has closely tracked the emergence of cryptos and digital assets as a separate asset class in portfolios world over. A lawyer by training, he previously contributed to the News and Research desk of Diplomacy & Beyond Plus. Before his stint at D&B, he was Editor at ED Times. Jibin also takes a great interest in politics, especially the corresponding effect political decisions and fiscal policy have on the world of finance, with a special focus on cryptocurrencies.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.