Ripple Could Be Heading to a Point of No Return
Heres a little background on the case. Less than a month ago, the financial agency filed a civil suit against Ripple, which issues the fourth-largest cryptocurrency in the world known as XRP after bitcoin, Ethereum and Tether (a stable currency). The SEC is alleging that Ripple falls into the securities category and did not properly register its 2013 token sale, which ultimately garnered the company as much as $700 million in funds. Thus, the agency is looking to press charges and show the world that it will not tolerate crypto companies that fail to abide by the rules.
However, Ripples CEO Brad Garlinghouse is claiming that Ripple has been labeled a valid currency and not a security by several leading financial agencies in both the United States and abroad. Thus, it was not required to register XRP with the agency and did not break any set regulations. He is hoping for the case to be dismissed.
The lawsuit – should it go through – could potentially spell doom for Ripple in that if the SEC wins, Ripple will likely not be able to issue any more sales or trades of XRP tokens, which means one of the worlds biggest cryptocurrencies could potentially become null and void. At one stage, Ripple was valued at approximately $150 billion, but if the SEC gets its way, this could all go to pot rather quickly.
Andrew Ceresney – a partner at Debevoise & Plimpton LLP, the law firm thats backing Ripple against the SEC – is working hard to try and prevent this from happening. One of the big pieces of evidence hes using to Ripples advantage at the time of writing is whats known as the Howey Test, something that the SEC utilizes to see which assets classify as securities.
According to Ceresney, R ...
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