Ripple vs SEC: to be continued
We began to forget about the epic battle between Ripple and the SEC. The commission, led by famous Gary Gensler demanded that the cryptocurrency Ripple must be recognized as securities. In July, the judge issued a half-hearted ruling that considered coins received by institutional investors as securities or investment contracts. All other coins are not considered as such and do not fall under the jurisdiction of the SEC.
The commission was not satisfied by this ruling as it exempted most of Ripple’s assets and created a very inconvenient judicial precedent. All subsequent processes were exposed by the real risk.
Naturally, the SEC filed an appeal, and the entire crypto community is looking forward to the outcome.
The process has tangible financial results. First, the Ripple process cost about $200M. How much the SEC spent is unknown, but if it loses, this question may arise it will be quite difficult to explain.
However, for Ripple, legal costs may well be a profitable investment. If it wins the process, the XRP stock price will go up. Recall that in July, immediately after the announcement of the judgment, the price of the XRP and intermediate victory jumped almost twice. It showed growth potential.
The likelihood of Ripple winning is quite high, and consequently, there is a high probability that legal costs are likely to be paid back.
#Ripple #SEC #GaryGensler #cryptocurrency #cryptocommunity
Posted Sep 23, 2023, 7:35 AM UTC