Ripple vs. SEC: Here’s why a settlement could prove disastrous
While people await the verdict in the lawsuit between Ripple and the SEC, the topic of conversation right now is about the case. It has been far too much time. To be exact, two years had passed. And I think I speak for everyone when I say that we all can’t wait for it to be over.
In the meantime, there is a lot of heated speculation in society about the potential outcome of the case. There are many who are rooting for Ripple to win. However, there are people who are concerned that the SEC will prevail, just as it did in the LBRY case.
The US congressional candidate highlights the importance of Ripple beating the SEC
Ripple’s decision to fight the United States Securities and Exchange Commission (SEC) in the ongoing lawsuit instead of trying to reach a settlement was recently brought up by United States politician and congressional candidate from Utah January Walker. Walker emphasized the significance of Ripple’s victory over the SEC in the latest tweet.
Walker believes that the world and the Web3 scene will suffer as a result of Ripple’s potential decision to settle. Walker is known for her support of blockchain technology and cryptocurrencies, and in September of this year she referred to Cardano as an efficient chain.
The rest of the world is watching closely what the US does, and according to Walker, a precedent is being established based on how the authorities handle just one case.
She went on to say that instead of competing with each other and arguing that our own organizations are superior to others, we need to work together to develop appropriate laws.
The information about a possible settlement for Ripple was provided by Charles Hoskinson, the inventor of Cardano. In one of his AMA videos on social media, Hoskinson made the startling claim about the contentious legal battle ongoing between Ripple Labs and the United States Securities and Exchange Commission (SEC).
In his words:
“I’ve heard rumors that the Ripple case will be settled on December 15th. And we’ll see, and it could have catastrophic implications for the industry, one way or the other.”
Walker, on the other hand, is not convinced that the authorities have a solid case against Ripple. She claims that if the SEC had such a rock-solid case, they wouldn’t be willing to negotiate a settlement at this point. That said, there’s a possibility that news of the settlement isn’t even accurate. But anyway, let’s see.
The bottom line
It is no joke that if Ripple were to lose the case against the SEC, it would seriously cripple the entire sector. It is expected that the outcome of this case will have a huge bullish impact on the value of XRP if Ripple wins. I can’t help but wonder what would happen if XRP were to be recognized as a legal security.
In April 2021, the CEO of the company, Brad Garlinghouse, gave an interview to CNN in which he stated that the company is prepared to continue operating without XRP in case it is unsuccessful in its legal battle against the US regulator, who claims that XRP is a security and that the company illegally sold the crypto to investors. It’s safe to say that I share the enthusiasm of everyone else in the crypto world for Ripple’s success.
