Decoding the Ripple vs. SEC Case: Expert Forecasts on the Verdict – Coinpedia Fintech News
Industry experts are divided on the Securities and Exchange Commission’s (SEC) ability to succeed in its case against Ripple. The ongoing legal battle between the SEC Vs Ripple has been closely watched, and opinions on the potential outcomes vary.
Notable, the SEC initiated the case against Ripple in December 2020, accusing the company of illegal securities issuance through XRP tokens. A positive turn for Ripple occurred in July when the judge ruled that private sales of XRP did not violate securities law, but institutional sales could potentially be considered securities.
Following this partial victory, the SEC launched an appeal to challenge the decision. Ripple’s legal team countered by arguing that the SEC failed to prove XRP’s security status using the Howey test, a tool for determining the classification of financial assets.
Mixed Sentiments Prevailing on the Outcome of the Case
In an open interview, many experts have given their unbiased viewpoints on the Ripple vs. SEC case, it’s not legal advice they have given their independent views on the case.
Interestingly, Alexander Goodman, founder of GCrypton, came out in support of SEC, As per him the SEC has a better chance to win as courts may give them an advantage over Ripple but acknowledges the fact that Ripple has strong arguments.
On the other side, Dmitry Noskov from the crypto exchange StormGain suggests that the court is likely to uphold the initial partial victory, given the prolonged trial history and lack of material examination.
Nikolai Zhuravlev, CEO of CFA.RF supports the idea that Ripple has a chance to challenge the SEC’s assessments.
While Gracie Chen, from Bitget exchange, shares optimism about Ripple’s position.
However, Anton Nozdrachev, co-founder of 1EX Trading Board, proposes an alternative view, suggesting that the SEC aims to collect fines rather than destroy Ripple, as fines could provide financial relief for the treasury.
Whatever the outcome one thing is clear majority of people support Ripple due to the fact that they have so far stayed in the business and still fighting strong with valid arguments. The SEC is blamed in almost all regulatory cases for changing and manipulating its stance to overcome the crypto industry.
Conclusion
The bigger issue is, that if the SEC prevails over Ripple, experts predict a negative precedent. Worse maybe that crypto companies may leave the United States due to regulatory scrutiny. This tectonic shift could cast doubt on many cryptocurrencies, prompting issuers to seek more favorable markets. Furthermore, a victory for the SEC could trigger a significant price drop across the cryptocurrency market. But if Ripple wins market will see XRP mettle as one Twitter user said:
Is SEC fearing something like this, only time will tell. It will be interesting to see the outcome in the current political upheaval.
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