- A Ripple and SEC remedies briefing is looming, sparking settlement rumors and fears of a massive XRP burn.
- A potential Ripple settlement has the potential to mirror LBRY’s token sale shutdown.
- Legal experts have clashed over the judges’ authority and the feasibility of a token burn.
The long-running legal saga between Ripple and the U.S. Securities and Exchange Commission (SEC) is heating up again, with speculation about a potential settlement deal as a crucial hearing date approaches.Â
Ripple & SEC Remedies Briefing Looms
February 12 will be the date for “a deep dive” into the remedies briefing, setting the stage for the legal proceedings. This has crypto enthusiasts and legal experts on the edge of their seats, eagerly awaiting the next chapter in this high-stakes drama.
One particularly chilling rumor gaining traction involves the potential incineration of XRP tokens held in escrow by Ripple. This drastic measure, estimated to erase over $20 billion from the market, parallels the SEC’s action against LBRY, where the court barred further crypto offerings until all LBC tokens were disposed of.
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However, skepticism abounds within the crypto community. Some point to the seeming discrepancy between the initial $1.3 billion charge and the astronomical $20 billion incinerator, while others raise practical concerns about the feasibility of forcing such a burn.
Will XRP Face LBRY-style Incineration?
Legal expert Bill Morgan argues that judges lack the authority to compel validators, the backbone of the XRP Ledger, to execute such a move. Adding fuel to the fire, prominent figures like Cardano founder Charles Hoskinson warn of the broader implications of a Ripple-SEC settlement.
If XRP is deemed a security under any potential agreement, it could set a dangerous precedent, granting the SEC sweeping powers to target other Layer 1 crypto projects. With the February 12 hearing looming large, the air is uncertain.Â
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Will Ripple and the SEC finally be resolved? If so, at what cost to the XRP ecosystem and the cryptocurrency industry as a whole? These burning questions hang heavy in the balance, leaving the world watching with bated breath for the next explosive twist in this epic legal clash.
On the Flipside
- The company maintains that XRP is not a security. The February hearing will be the first real test of their legal arguments.
- Even if a resolution is reached, it may not provide definitive guidance for other crypto projects and the evolving regulatory landscape.
Why This Matters
Although unlikely in practice, the potential incineration of XRP in a Ripple-SEC settlement raises chilling fears of a precedent for broader SEC control over the entire Layer 1 space, leaving the future of countless crypto projects hanging in the balance.
XRP whales are accumulating rapidly, and some experts believe it could signify a price surge. Read more to see why:
XRP Whales Make Waves: 10-Year High for Wallets Holding XRP
A lawyer demands answers after a regulator mysteriously took XRP off their greenlist. Could this be the SEC’s doing? Find out here:
XRP Taken Off Regulator Greenlist: Attorney Demands Answers
