By Hassan Mehmood (Saudi Arabia)
J. Carl Cecere, the owner of Cecere PC law firm, has addressed Gary Gensler, the newly appointed SEC chief, in a Bloomberg article. The article was published on the Bloomberg law section and has been going around in crypto circles, causing a considerable uproar. This is arguably the first time that a qualified lawyer has pointed out that the implications of the Ripple Labs case can prove to be deterring and harmful for the entire cryptocurrency spectrum.
Cecere debates in the article that Gensler has the chance to dismiss the lawsuit altogether and instead work alongside the company to introduce policies that would make room for better growth for crypto within America. The most important aspect of this article is that it does not attempt to argue or prove the findings but states them in a matter of faculty manner.
XRP is not a Security
Cecere dedicated a good portion of the article to show that it is not possible to cast XRP tokens under the role of security. He has stated that since the value of the digital token is not tied to the value of the company, it cannot be considered a security. The SEC has been seeking billions of dollars in damages by casting them under legal persecution for selling unregistered securities.
Also read:The focal point of the lawsuit has been to prove that the XRP token is not a digital currency but security. In response to a motion by the defendants, the SEC lawyers told the court that Bitcoin and Ethereum do not well-defined status, but their decentralized nature saves them from prosecution. Cecere also says that XRP is unfit to qualify as security since it does not provide the holders any part of the ownership in Ripple Labs.
Expectations from Gary Gensler in Regards to the Ripple Labs Case
Gary Gensler has taught the students at MIT about blockchain technology and its effect on financial technology enterprises. The author of the article addressed the veteran lawmaker in his article and urged him to consider the importance of DLT development and crypto sector contributions in the United States. However, Gary Gensler quoted in the past that it is possible to put XRP and Ethereum on trial for being non-compliant securities.
On the other hand, the newly appointed US Treasury Secretary has also broadcasted her reservations about the environmental hazards related to the mining process of cryptocurrencies. In short, the cryptocurrency markets are in a paradox now; if the SEC succeeds in casting a penalty on Ripple labs, the next target could be other digital tokens. If Ripple Labs gets out of the legal pickle, it could increase the market volatility.
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