- The landmark Ripple vs. SEC case has reached its closing stages, with final arguments having been submitted.
- The crypto industry is on edge as the verdict will define regulations for digital assets in the US.
- A prominent lawyer has predicted a victory for Ripple due to the SEC’s weak arguments and absence of new evidence.
The landmark legal battle between Ripple Labs and the SEC is nearing its conclusion. Both parties have submitted their closing arguments, leaving the cryptocurrency industry on tenterhooks as they await a verdict that could significantly impact how digital assets are regulated in the US.
Ripple Eyes Victory as Final Arguments Conclude
Prominent lawyer Jeremy Hogan, who has closely followed the case, believes Ripple has a strong chance of winning. In its final arguments, the SEC did not directly challenge Ripple’s core business model of facilitating international payments via blockchain technology.
Additionally, they failed to present new evidence justifying their initial request for a hefty $2 billion fine against Ripple. Hogan interprets this as a sign of a potentially weaker case for the SEC. Furthermore, he believes the court is unlikely to rule that XRP is a security, a classification that would subject it to stricter regulations.
This optimistic outlook for Ripple stands in stark contrast to the concerns of some industry leaders like Michael Saylor, who fear the SEC might restrict XRP and similar currencies. Saylor’s apprehension highlights the broader uncertainty surrounding the SEC’s approach to cryptocurrency regulation.
The contrasting penalty amounts proposed by each side raise further questions about the SEC’s true intentions. The SEC seeks Ripple’s hefty $2 billion fine for selling XRP to institutional investors. Ripple counters with a significantly smaller figure of $10 million.
Lawyer Jeremy Hogan warns that if the SEC prevails and forces Ripple to pay the $2 billion fine, Ripple might be forced to sell a large portion of its XRP holdings to meet the financial obligation. This, in turn, could lead to a significant drop in the price of XRP, potentially harming many retail investors who hold the cryptocurrency.
A Decision with Far-Reaching Implications
Hogan’s concerns underscore the potential negative consequences the SEC’s actions could have on the entire cryptocurrency market. The final decision in the Ripple vs SEC case will have far-reaching implications for the cryptocurrency industry in the US. A victory for Ripple could provide much-needed clarity for crypto companies by establishing clearer regulatory guidelines.
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Conversely, a win for the SEC could usher in an era of stricter regulations for cryptocurrency. With so much at stake, the entire crypto community is watching this case closely, as its outcome could set a precedent for future cryptocurrency regulation in the US.
On the Flipside
- Regardless of the verdict, the losing party will likely appeal the decision. This could prolong the uncertainty surrounding XRP and cryptocurrency regulations in the US.
- The US verdict is just one piece of the puzzle. Regulations around cryptocurrency vary worldwide, and the Ripple vs. SEC case might not have a major international impact.
Why This Matters
With closing arguments submitted, the Ripple vs. SEC case nears its conclusion. This verdict will not only define XRP’s fate but also cast a long shadow over the entire US crypto market. A clear decision will provide long-awaited regulatory clarity, while an ambiguous one could leave the industry in limbo, impacting innovation and investor confidence.
Dive deeper into the legal battle between the SEC and Ripple Labs regarding an SEC accountant’s testimony as expert testimony here:
SEC Repels Ripple’s Challenge in Contested Witness Dispute
Learn more about the ongoing lawsuit between Ripple and the SEC concerning XRP being a security here:
Ripple Disputes SEC Last-Minute Witness as Judge Gets Strict
