Ripple vs SEC: Is the solution in sight?
Experts discussed the implications of the forthcoming court decision for the whole cryptocurrency community as well as the future of XRP.
The trial, which has lasted over two years, is expected to finish soon. However, some analysts predict that Ripple will prevail. The most recent ruling of Judge Analisa Torres indicates that she directed that the so-called Hinman records be made public.
The context: William Hinman is a former director of the SEC Division of Corporate Finance. The documents refer to one of his talks, in which he emphasizes that Ethereum (ETH) is not a security. Ripple Labs stressed the significance of Hinman’s materials. After all, if ETH is not a security, Ripple’s XPR cannot be classified as one either.
The Ripple verdict will affect the cryptocurrency sector
If the court grants summary judgment to Ripple, the case will set a precedent for evaluating whether cryptocurrencies are securities subject to SEC jurisdiction. Some media have previously claimed that the SEC is attempting to delay resolving litigation. Nonetheless, the recent court order may help the parties reach a settlement agreement.
Why is it so important?
Furthermore, the SEC’s competence only refers to securities, and if the XRP token is not recognized as a security, the SEC will be unable to make any decisions involving cryptocurrency. As a result, Ripple will fight to demonstrate that XRP is not a security and that no profit guarantees were made.
For numerous years, the negative perception of the XRP token has triumphed over the positive one. Thus, a court judgment in favor of Ripple Lab would undoubtedly trigger a dramatic jump in price to $0.7–1 in a short amount of time. Now its price is nearly $0.45.
Detailed chronology
Fox Business previously reported a large-scale investigation into the SEC’s lawsuit against Ripple. Journalists concluded that the agency personnel behind the case may be related to Ethereum.
Empower Oversight, a non-profit organization, has raised the possibility of a conflict of interest in the acts of former high-ranking Commission officials.
Officials from the Securities and Exchange Commission were unable to “confirm or deny” the validity of a video of Hinman speaking at the 2018 Fintech Week conference in May.
To summarize, the parties filed petitions for summary judgment on a suspected Securities Act violation in September. Plaintiff and defendant both stated that the judge had enough facts to do so.
Ripple CEO Brad Garlinghouse ruled out taking the matter to a jury on September 23.
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Valentyna Bereza, Team bit4you.
