554 Interactions, 6 today
Ripple and XRP have had an eventful few months, with the two at the forefront of a controversial litigation brought by the United States Stock and Exchange Commission in December. In reality, the mere filing of the case had a significant effect on the industry. Not only was XRP delisted from a number of exchanges after losing all of its worth in the immediate aftermath, but Ripple’s volumes still fell significantly.
However, as of press time, the blockchain seemed to have recovered on the market charts. As a result, the question is, what would be the effect of an adverse decision on Ripple and XRP?
Jeremy Hogan, a well-known attorney, responded to the same in a recent interview. Citing the decision in the Kik Interactive case as the “worst-case situation,” Hogan argued that a similar verdict would not be a deathblow to Ripple, and XRP will not be limited to “none.”
In the above case, the claimant was fined 10% of the amount earned in the challenged ICO, and the court also ruled that Kik Interactive would continue to conform with SEC securities regulations and should only market the Kin token to accredited buyers. According to Hogan, if a comparable decision were made in the current case regarding Ripple and XRP, “it will not bring it out of business.”
“The worst-case scenario from past cases is not that horrible.”
The attorney also affirmed that a settlement is the most possible outcome, with Hogan believing that Gensler’s tenure as SEC Chairman would make such a prospect much more likely.
He also pointed to the fact that Judge Sarah Netburn allegedly highlighted the utility of XRP as a currency rather than a defence only a few days earlier, an observation that hits on the crux of the SEC’s situation. It should be noted, though, that Judge Netburn is not the main judge in the matter. Instead, she is simply helping Judge Analisa Torres with a few facets of the trial’s investigation process.
Finally, although Ripple’s recent revenues could be adequate, evaluating them when they age would be challenging, with disgorgement likely to play a role. Hogan came to the realisation,
“Ripple is looking really strong as far as current and future sales are probably not sales of securities. Now, if you go back to 2014, 2015, or 2016, now you have more of a problem.”