The end of 2020 brought one of the biggest bombs in the crypto world. The Securities and Exchange Commission (SEC) ended up suing one of the biggest global payment networks, Ripple Labs.
The SEC claimed that Ripple is selling unlicensed securities through their native token, XRP. This is a massive threat to the company, and the overall crypto industry itself.
If XRP is declared as a security, Ripple will go down and the SEC will have the power to attack other blockchain projects. However, if Ripple wins this case, the value of XRP is expected to increase significantly.
Here’s a brief overview of everything that has taken place in the SEC vs. Ripple case so far, including the potential outcome.
SEC vs. Ripple – Case Overview
Chris Larsen and Brad Garlinghouse, the co-founders of Ripple, didn’t know what was coming when a lawsuit was dropped on December 22nd, 2022.
The SEC accused Ripple of selling unregistered securities. This resulted in a major fallout. The news of this lawsuit spread all over the crypto industry. The $28 billion market value of Ripple’s cryptocurrency, XRP, took a massive hit. Needless to say, this lawsuit tarnished Ripple’s reputation.
For several years, XRP was in the third position after Bitcoin and Ethereum in the cryptocurrency market. Not only did people invest in Ripple, but the company also developed a relationship with major banks. However, with the lawsuit, all that was pretty much lost.
The SEC’s mission was to knock Ripple down a peg and showcase them as nothing more than a scam. The SEC claimed that the owners of the company are just looking to fill their own pockets through XRP. On the other side, Ripple fought back with a reply of its own. Since the lawsuit was issued, Ripple has been fighting back and hasn’t slowed down since.
So, what happens when either party wins? If the SEC ends up winning this case, then this will create an issue for the other crypto companies. If they lose, this will be a humiliating loss for the US’s top financial police and their enforcement powers.
The outcome of the SEC vs. Ripple case is going to determine the fate of the company, which also includes the future of the crypto industry. For example, should cryptocurrencies be treated similarly to stocks? The answer to this question and many others will be decided by a judge once the case comes to a close. That answer is worth billions of dollars.
Is Ripple Going to Win?
For the past two years, Ripple has been in a constant legal battle with the SEC, which has left the crypto world anticipating the end result. So far, the case continues to show signs that Ripple might win in the end, but nothing can be said until the judge’s final decision. However, a win like this will significantly skyrocket XRP prices for Ripple.
During the case, the SEC refused to provide the essential Hinman speech and related documents to the court, which tipped the scales in Ripple’s favor and placed them in Judge Torres’ good books. Similarly, Ripple was asked to produce two amicus briefs, and they immediately complied, as opposed to the SEC not doing the same.
What Does Ripple’s Win Mean for the Crypto World?
As mentioned earlier, Ripple’s fate is in the hands of this case, which also includes XRP’s price in the crypto market. Throughout the case, the price of XRP was moving in tandem with how the case was developing. If Ripple wins, XRP’s price is expected to go over $3.40, which will definitely give it a place among the next-gen coins.
“Will XRP be declared as a security?” is the question everyone’s asking. The answer could potentially overturn XRP’s price going forward. If it’s declared as a security, the coin with cease to exist and lose more ground.
So far, the chances of declaring XRP as security are low. If that did happen, then buying XRP would be similar to purchasing a share in Ripple.
Should You Invest in Ripple?
At the moment, XRP is known as the most controversial cryptocurrency in the market. So the question remains – is it safe to invest in XRP? Crypto experts believe that the answer to that is a yes. Despite the SEC vs. Ripple case, XRP remains one of the most popular cryptos right after Bitcoin and Ethereum.
If you want a more specific answer at a more optimal time, our expert crypto signal providers are there for you. You will receive expert recommendations regarding which crypto to invest in.
SEC vs. Ripple: Bottom Line
The SEC vs. Ripple case might be coming to a close after years of legal drama. Both Ripple and the SEC have agreed to a joint proposal when it comes to the sealing issues prior to Judge Torres’s ruling on the summary judgment motions. This means that both parties will get access to the details of briefs, including other unseen documents if this request gets granted by the judge.
From the start of the case, the SEC and Ripple were butting heads and there were no chances of agreeing to any sort of settlement, despite all the rumors that were circulating around. However, both parties agreeing to a joint proposal is a major sign that a settlement might be on its way.
The ruling on summary judgment motions will probably take place next year as 2022 comes to a close. This is according to the latest schedules that have been filed in this case.
In conclusion, no matter which party wins in the final battle of the SEC vs. Ripple case, one thing is certain, the judge’s final decision will be a turning point for the entire crypto industry.