Investors in XRP are interested in knowing what the future holds for the cryptocurrency now ranked sixth by market capitalization, with the ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC), one of the most important aspects that might have a significant effect on its success.
The SEC initiated legal action against Ripple Labs based on allegations that the company had offered unregistered securities in the form of XRP tokens.
The lawsuit has continued for three years, with both parties submitting final filings and waiting for a decision.
In this line, Finbold asked industry professionals about whether Ripple could win the lawsuit against the SEC, and what it would mean for the price of XRP if it was successful.
David Reischer, Attorney and CEO of Legal Advice
David Reischer told Finbold that other nations’ regulators have ruled that crypto cannot be regarded as a security if there is no issuer. For this same reason, he noted:
“Ripple will likely prevail against the SEC claim Ripple must register its tokens like a security. Ripple has long held that investors have no “investment contract” that offers anybody any rights.”
Reischer notes a favorable conclusion would be “beneficial to the entire crypto industry” because it is necessary to offer clarity and confidence for the entire industry. It is essential for the whole of the industry to have a thorough understanding of any duties, and regulatory expectations set out by the SEC, the U.S. Commodity Futures Trading Commission (CFTC), and any other financial compliance agencies.
Andrew Pickett, lead Trial Attorney at Andrew Pickett Law
According to the attorney based in Florida, the result of the lawsuit between Ripple and the SEC is being eagerly awaited across the sector, with Pickett highlighting that:
“If Ripple is successful in their lawsuit, it could help solidify XRP’s legality in the US market, which would benefit its price.”
Elsewhere, he views the outcome as a fundamental setting, ‘an important precedent applicable to other cryptocurrencies, such as Bitcoin,’ especially by leading financial institutions.
“This could open up the cryptocurrency industry to more mainstream investors and businesses that would have previously been cautious about entering the market due to legal uncertainty.”
Final ruling
Notably, if the regulator is successful in this case, it might have very negative repercussions for XRP, its investors, and the cryptocurrency sector as a whole. In particular, the regulatory body has the authority to levy a fine on Ripple Labs and demand that the business register XRP as a security.
As a consequence, a judgment of this kind would certainly result in XRP being treated in the same manner as conventional securities, which may restrict both its adoption and usage.
On the other hand, if Ripple is able to defend itself against the arguments presented by the SEC effectively, it may be considered a significant triumph for the firm as well as a favorable sentiment for XRP. Despite the fact that Ripple had some success during the hearings, the final result of the lawsuit is still unknown, which is very important to keep in mind.
By press time, XRP was trading at $0.34, recording daily losses of about 2.7%, with the asset having a total market worth of $17.1 billion.
As an enthusiast deeply immersed in the world of cryptocurrency and blockchain, my extensive knowledge in this domain allows me to provide valuable insights into the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC) regarding XRP. My expertise is rooted in a thorough understanding of the intricacies of crypto regulations, market dynamics, and the potential impact of legal decisions on digital assets.
Firstly, it's crucial to acknowledge the significance of regulatory clarity in the cryptocurrency space, especially in the context of the SEC's lawsuit against Ripple Labs. David Reischer, an attorney and CEO of Legal Advice, rightly points out that regulators in other nations have recognized that crypto cannot be treated as a security in the absence of an issuer. This argument forms the crux of Ripple's defense, asserting that XRP does not represent an investment contract and, therefore, should not be classified as a security.
Reischer's insight into the global regulatory landscape serves as a strong indicator that Ripple may prevail against the SEC's claims. His assertion that a favorable outcome for Ripple would be "beneficial to the entire crypto industry" highlights the broader implications of this case. Regulatory clarity not only instills confidence but is essential for the growth and acceptance of the entire crypto ecosystem.
Andrew Pickett, lead Trial Attorney at Andrew Pickett Law, provides another layer of expertise by emphasizing the anticipation surrounding the lawsuit's outcome within the sector. Pickett rightly notes that a successful defense by Ripple could solidify XRP's legality in the U.S. market, positively influencing its price. Moreover, he recognizes the potential precedent this case might set for other cryptocurrencies, including major players like Bitcoin. This precedent could pave the way for increased participation from mainstream investors and businesses, alleviating concerns related to legal uncertainty.
However, the article rightly presents a balanced perspective by highlighting the potential negative repercussions if the SEC emerges victorious. The SEC's authority to fine Ripple Labs and demand XRP's registration as a security could significantly impact both the coin's adoption and usage. This underscores the high stakes involved in the lawsuit and the broader implications for XRP and the cryptocurrency sector.
In conclusion, while experts like Reischer and Pickett provide optimistic views on Ripple's potential success, the final ruling remains uncertain. As an enthusiast deeply engaged in the crypto space, I emphasize the need for careful monitoring of this legal battle's developments, as it holds the key to shaping the future of XRP and influencing broader regulatory dynamics in the cryptocurrency industry. As of the latest available information, XRP's market performance, trading at $0.34 with a total market worth of $17.1 billion, reflects the ongoing uncertainty surrounding the lawsuit.
