El Salvador Bitcoin advisor Max Keizer predicts that Ripple (XRP) will not win against the SEC. Keizer says this isn’t about the law. He claims it’s more about the organizations empowering the SEC. This statement came after the court ordered the release of Ripple’s 2022-23 financial records.
Max Keizer: Gensler’s primary goal is to kill Ripple (XRP)!
Max Keiser, a Bitcoin advisor to El Salvador President Nayib Bukele, expressed a less-than-optimistic perspective on XRP and Ripple’s ability to prevail against the US regulator. Keizer argues that XRP cannot triumph. However, he emphasizes that the problem is not with the law itself. At this point, he draws attention to the organizations that strengthen the US Securities Exchange Commission (SEC). According to Keizer, the SEC functions as Wall Street’s “paid thugs.” Additionally, Chairman Gary Gensler’s primary goal is to “kill” XRP.
The Bitcoin maximalist made these strong statements following news that a US court had ordered Ripple to disclose certain financial statements requested by the SEC. Specifically, the SEC requested financial documents regarding Ripple’s XRP sales to institutional investors between 2022 and 2023. This time period covers the periods after the SEC’s first lawsuit filed against Ripple in late 2020.
SEC got its first win with its last move!
Essentially, critics like Max Keizer do not foresee Ripple ultimately prevailing in the fight against the SEC. With this, cryptokoin.comAs you follow from , the SEC’s victory against Ripple is important. Because this is the SEC’s first win, even though the payments company has repeatedly made positive decisions in the case. For example, a US court ruled in July 2023 that XRP is not inherently a security. Thus, it broke the SEC’s earlier argument.
Before Hearing, Ripple deciphers XRP sales game plan
Ripple announced its last quarterly report for the 4th quarter of 2023. Accordingly, it has made some significant changes to its approach to selling XRP to institutions. This change is related to the pivotal decision on July 13, 2023, which declared that XRP is not a security. However, it was stated that some past sales to institutions violated securities provisions. Ripple had changed its XRP sales strategy even before the court decision in July. All sales will now comply with the court’s legal standards.
The game has probably changed since Ripple brought its sales practices into compliance with court standards. Ripple is highlighting an average daily revival of $600 million in spot trading volume for XRP in Q4. At the same time, XRP has underperformed compared to other major cryptocurrencies such as Bitcoin and Ethereum, which have seen significant gains. XRP managed to close the 4th quarter of 2023 with a 19.5% increase.
The change in sales strategy is important for Ripple!
Ripple states in its Q4 report that it changed its approach to selling XRP to institutions before Judge Torres’ decision. Previously, Ripple was selling a total of $729 million worth of XRP, which the court accepted as an investment contract, directly to institutional buyers under written contracts.
In this model, buyers expected Ripple to use the capital to increase the price of XRP and make a profit. XRP buyers now purchase XRP solely to facilitate fast and low-cost transactions. Additionally, they only hold the asset for a short period of time. This short-term usage means buyers do not expect to make direct profits from XRP transactions.
The impact of the changing model on the case
This change in sales strategy indicates that recent or ongoing sales to institutions are not subject to the same securities provisions as past transactions. Therefore, the documents requested by the SEC in the remedies section of the case may not reveal any evidence pointing to Ripple regarding this changing sales strategy. If Ripple’s revised sales model is accepted, it is likely to ease other regulatory penalties or bans on sales. Additionally, it is possible for the company to continue its current sales operations without disruption.
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