In what has become a closely watched legal battle, the outcome of the ongoing case between Ripple, the prominent blockchain company, and the United States Securities and Exchange Commission (SEC) is poised to have a significant impact on the cryptocurrency market. John Deaton, a lawyer and staunch advocate for XRP, firmly believes that the judge’s ruling will reverberate throughout the industry, with potential consequences for not only XRP but also other major cryptocurrencies like Bitcoin and Litecoin.
The crux of the case revolves around the classification of XRP, the native currency of the XRP Ledger (XRPL). The SEC contends that XRP should be considered an unregistered security due to its use by Ripple to generate billions of dollars during its initial coin offering (ICO).
Lawyer Predicts Ripple’s Favorable Ruling Could Ignite Crypto Market Surge, Including Bitcoin
Deaton recently took to Twitter to underscore the case’s magnitude and its implications for the wider crypto market. He asserts that a favorable ruling in Ripple’s favor would not only spark a rally for XRP but would also likely lead to a surge in other cryptocurrencies. Even Bitcoin, the largest and most well-known digital currency, could experience a similar uptick.
Conversely, Deaton warns that an unfavorable ruling supporting the SEC’s position would prolong the ongoing campaign against cryptocurrencies, backed by politicians, potentially stymieing the industry’s growth in the United States. Notably, he highlights how such a ruling would particularly harm other coins, including Bitcoin, which the SEC has officially classified as a commodity.
While the legal battle between Ripple and the SEC unfolds, crypto enthusiasts in the United States are growing increasingly concerned. The SEC has been intensifying its scrutiny of digital currencies in recent months, targeting major exchanges such as Binance and Coinbase. These lawsuits accuse the exchanges of facilitating the trading of unregistered securities, with specific mention of coins like Cardano, Solana, and Algorand. The community anticipates protracted court proceedings, hoping that the outcome will bring much-needed regulatory clarity.
Some proponents of cryptocurrencies fear that if they do not actively resist the regulatory actions, they will be left with a limited selection of tradable tokens. They worry that the list will include only the more established projects like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. It is worth noting that, apart from Ethereum’s recent transition to a proof-of-stake consensus system, the remaining coins mentioned operate on proof-of-work networks.
At present, XRP prices have stabilized and continue to maintain a position within the top 10 cryptocurrencies. Although there were initial gains after the SEC was instructed to unseal documents related to William Hinman’s 2018 speech, XRP’s value has since fallen below $0.60, marking a decline of approximately 3% during the last trading week.
As the Ripple-SEC legal battle progresses, investors and crypto enthusiasts eagerly await the judge’s ruling, recognizing its potential to reshape the cryptocurrency landscape and set a precedent for future regulatory actions.