Table of Contents
Introduction
XRP has suffered a great setback in advancing its project since the beginning of its court case with the US Securities and Economic Commission (SEC) which commenced in 2020. The uncertainty over the case has limited investors from buying ripple coins as desired. The SEC had accused the XRP team of violating the laws by issuing their assets valued at $1.4 billion to the public without registering them with the commission as securities.
The XRP team has defended this charge and disagreed with the SEC in a lawsuit that their token XRP which was issued after ICO is a digital asset and not a security.
Here, they cited the previous position of the former SEC chairman – William Hinman who denied that Ethereum could ever be classified as a security.
Hinman described Ethereum as a digital asset that investors must be cautious in dealing with. The XRP team, therefore, clinged to this statement to assert that their token is only a digital asset with the same status as Ethereum and not a security to be registered with the SEC before it is issued.
As the case lingered on, the court has for the most part ruled in favor of the XRP team who has been asked to provide the documentaries and other relevant evidence where the former SEC Chairman has classified Ethereum as a digital asset rather than a security which will become the yardstick for concluding the current proceedings.
Will the XRP team prevail over the SEC in the ongoing proceeding after the team said they have finally unraveled this speech and other evidence in their favor to be presented to the court. What impact will the ongoing court case between the duo have on the price of XRP? Do you care to find answers to these questions? Then you need to read this work carefully to find out.
Understanding the ongoing SEC vs Ripple Case
The ongoing court case between the SEC and XRP team bears large implications for the crypto market at large. The SEC has accused the XRP team of issuing their tokens to the public and raising over $1.4 billion from the project without registering them with the body as Security. This goes against the purpose of Cryptocurrency which is largely a digital asset rather than Securities.
The XRP team has defended their project classifying them as digital assets rather than Securities. The team has currently been able to obtain the documents where the previous SEC had described Ethereum as a digital asset which has become their backbone in defending XRP as having the same status as Ethereum.
The XRP team has further requested the SEC to release the emails and other documents that showed how Hinman’s speech was interpreted by the commission internally. The SEC had resisted this demand but the XRP team had finally obtained the documentaries.
However, the case is expected to carry on into next year when the final court ruling will be declared.Â
What impact will the SEC vs Ripple Case have on XRP?
The outcome of the lingering court case between the SEC and the XRP team will have a large impact on the price of XRP. Will investors generally hope for the XRP team to win which will push up the price of XRP to new all-time highs again? On the contrary, an unfavorable judgment against the XRP team will result in a massive crash in the price of XRP as the team will be required to pay a heavy fine for violating the regulatory demands before offering their tokens to the public.
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