Ripple v SEC: Here is Why Crypto May Classify As Securities, If SEC Wins
The Crypto community is in a state of unrest, dreading the fact that if the Securities and Exchange Commision (SEC) wins its lawsuit against Ripple, it will face more stringent regulations.
Legal War Between Ripple And SEC
The crypto community has repeatedly expressed its displeasure with the regulations and charges imposed by the SEC. The speculation for the outcome between Ripple and the SEC finally gave the crypto community something to hold on to, with many firms betting on Ripple coming out victorious.
However, no decision has been reached in this lawsuit.. There was numerous evidence against both parties, one of which was the Hinman document, which Ripple used against the SEC as leverage in the case.
According to Charles Gasparino, a business journalist, one of the most prominent cryptocurrency exchanges, Coinbase, is devising a strategy to survive and withstand these SEC regulations regardless of the outcome of the lawsuit.
This includes the registration of virtual assets as securities.
The SEC and Ripple were involved in a lengthy legal battle over the sale of unregistered securities to Ripple’s investors.
According to the SEC, Ripple sold these unregistered securities to investors knowingly.
The point of contention has been whether crypto currencies should be classified as securities or commodities.
The judge presiding over a Mango Market DeFi platform case ruled out cryptocurrencies as commodities rather than securities in a court ruling. This decision gave the crypto community hope that Ripple would prevail in its lawsuit against the SEC.
The Fate Of The Industry Lies In Ripple’s Hands
However, given the timing of events, this may not be significant enough to rule out XRP tokens as a commodity rather than a security.
The fate of the crypto industry is currently in the hands of Ripple, and if the SEC wins the cases, all other cryptocurrencies will be forced to register their assets as securities and adhere to securities regulations.
And this victory will give the SEC more authority over the crypto community, allowing it to impose more stringent regulations on the space.
Apart from centralized exchanges in the crypto space, according to Gasparino, the SEC victory will have an impact on other sectors.
One of the many people who filed an amicus brief in this Ripple case, John Deaton, also stated that the SEC has produced a long-standing case against a crypto firm with the strongest argument.
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