The United States Securities and Exchange Commission (SEC) is continuing to place a high priority on its legal struggle against Ripple and is moving in the direction of an expected summary judgment. Even while the majority of people in the community hope that Ripple will prevail, we just can’t seem to get over the fact that SEC could really prevail.
Reporter Highlights Worst-Case Scenario If SEC WinsIn a tweet posted on January 5, 2023, a reporter for Fox Business named Charles Gasparino describes the worst possible outcome that may occur if Ripple were to lose its lawsuit against the regulatory body. This scenario begins with the premise that Ripple is unsuccessful in their legal challenge.
Then, buoyed by the result, SEC head Gary Gensler would very certainly initiate an assault on Ethereum in court due to Ethereum’s sales of the cryptocurrency, says Gasparino. According to the reporter, this would render two of the most promising cryptographic systems useless. He went on to say that the bulk of cryptocurrencies now available on the market are not backed by anything.
Gasparino’s words were:
“Gary Gensler could, probably will target Ethereum for its sales, crippling the two best technologies in crypto. Most of these coins are backed by nothing; Bitcoin’s tech is outdated. Ripple and Ethereum are real. Scary stuff.”
Despite saying he’s reviewing the Ripple vs. SEC case in detail, he questioned why the commission was giving more attention to the XRP case than the FTX case, which is a reasonable point to raise.
ConclusionIt should be noted that the SEC considers Ripple to have defied the agency’s authority by continuing to sell XRP despite warnings. This occurred despite the SEC warning Ripple to halt the sale, and the commission was eager to establish XRP as a security based on how Ripple was selling its original digital currency.
Gasparino’s predictions are unlikely to come true, as many in his tweet’s comments section have pointed out. Recall that crypto attorney John Deaton started a Twitter thread asking the community whether or not they expected Ripple to settle this year. The overwhelming majority of the respondents said yes. Only time will tell what exactly the outcome of this case will be.
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