More On: ripple lawsuit update
Ripple's cross-border growth confronts the SEC
Ripple lawsuit update: Judge rejects SEC's request to suppress Ripple docs
RIPPLE WINNER DUE TO SEC'S 'MAJOR ERRORS' AT 'SUICIDE MISSION HEARING'
In the coming weeks, President Biden will nominate a former Ripple adviser to be the Fed's Vice-Chair for Supervision.
XRP gains support from SEC v. Ripple case updates
Since its inception, the Ripple Labs case has taken several turns. It's a long way from where it started, thanks to many small successes, delays, and moves.
Most analysts now believe that Ripple is on the verge of a major breakthrough. Some damning assertions made by the SEC's finance director were not excluded from discovery, and the defendant was able to win numerous procedural battles in the process. Furthermore, a former SEC official who is a capital markets lawyer thinks Ripple's case is legally sound.
Ripple, on the other hand, appears to be in a strong position. That's good news for Ripple and everyone who hopes to see XRP (CRYPTO:XRP) flourish in the long run.
At this moment, the question is whether Ripple will accept a partial triumph or pursue a full victory? If Ripple agrees to a settlement, it will be able to conclude the SEC litigation fast and cheaply. The corporation might save money by reaching a settlement with the SEC that is considerably lower than what they are asking for. However, if Ripple wins a case in which it is found not liable, the company avoids future securities regulation. For both the corporation and the crypto sector, this is a pivotal moment.
Ripple's settlement could be due to these reasons For one thing, it's inexpensive and easy for Ripple to resolve this XRP case. Trials can be extremely expensive, with attorneys' fees and other costs adding up quickly. If Ripple settles, it will be able to quickly and cheaply resolve this issue.
If Ripple and the SEC can agree on a $10 million settlement, for example, that would be a win-win situation. This price is $1.29 billion less than what Ripple could be ordered to pay by a court – theoretically, at least. So far, it appears that the judge in the Ripple case is not sympathetic to the SEC's position. We can rule out the possibility that she'll order Ripple to pay the entire sum. A minor settlement, on the other hand, may nevertheless be more cost-effective than going to trial.
How great it would be to win everything. Because Ripple won its lawsuit, it doesn't have to pay a penny in compensation. This would be extremely advantageous for the business as a whole. As a result of this precedent, the crypto economy as a whole stands to benefit. Ripple's registration as a security would be invalidated if the judge rules that it did not do so illegally. Cryptocurrency creators would be exempt from the registration, financial reporting, and other costs connected with securities in this scenario.
If Ripple wins, initiatives like Ethereum will benefit just as much. They would be able to move forward with their plans without having to worry about enormous legal fees. The value of their tokens may rise as a result of this.
Irresponsible implication The most important thing to remember is:
Ripple appears to be on its way to a victory in its lawsuit. What remains to be seen is the magnitude of the victory. The SEC demands $1.3 billion (plus interest), but if the company settles, it will likely pay less. That means it might walk away with nothing if it wins at trial. In any case, this is fantastic news for XRP investors, since cryptocurrencies rely on the organizations that manage them for ongoing development and maintenance.
** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
