Since the end of December 2020, the SEC has been at loggerheads with Ripple. The legal dispute drags on and weighs on the cryptocurrency XRP. Is the decisive help for Ripple coming now?
Since Ripple (XRP) was classified as a security by the SEC (Securities and Exchange Commission) at the end of December 2020 and sued, as a result, XRP investors have to bring a lot of patience. The lawsuit is not only against the company itself but also against the two founders, Brad Garlinghouse and Chris Larsen. The accusation of the authority is to have issued a not registered security. The XRP price collapsed as a result, while the rest of the crypto market continued to move north.
The following bad news came on January 19, 2021, when one of the world’s leading crypto exchanges, Coinbase, announced that it would delist XRP, i.e., suspend trading in this altcoin, due to the smoldering legal dispute. As a U.S.-listed company, Coinbase felt compelled to take this step pending legal clarity. Coinbase CEO Brian Armstrong then sharply criticized the SEC, fueling rumors of a possible relisting. Investors are still waiting in vain for this to happen.
Ripple has sufficient financial resources in the 100 million U.S. dollar court case and has opposed it with all legal possibilities. This includes, among other things, the application to release the so-called “Hinman documents”. These could benefit Ripple, as the former director of the SEC’s financial division, William Hinman, is said to have stated that he does not consider Ethereum security.
And it is precise with these documents that Ripple is now getting protection help from famous crypto lawyer John Deaton. In a tweet, the latter assumes these documents will be released sooner or later. To that end, Deaton continues to fire back at the SEC for taking a legal slap in the face from a U.S. court regarding the Voyager bankruptcy. The judge criticized the agency for failing to establish a metric defining which cryptocurrencies are unregistered “security offerings.”
A total of 1,486 votes were cast across our social media channels (Instagram, Twitter, YouTube, LinkedIn, and Telegram) from March 22-23. And for you guys, it’s clear: Ripple came out on top! 72% voted “Absolutely!” and “More like yes!” overall. Only 11% see the SEC coming out as the winner in this lawsuit. And the number who don’t care about this likely landmark ruling for the crypto space is just 16%.