Remarkable Research on the XRP Case!

Fox Business, the leading news channel, has signed an agreement with the US Securities and Exchange Commission (SEC) and Ripple Labs, Inc. published an investigative report on the case between The case has been ongoing since December last year, and is followed with great interest by the public and the media.

The dispute concerned Ripple’s alleged selling unregistered securities on XRP. Fox Business’s report begins when the SEC first took action against the fintech company. They point out that the lawsuit was filed days before a mandate change in the SEC. Also, what was curious at the time was that Ripple chose to fight their case in court rather than give up and choose to settle with the SEC.

The outcome of the case is not only important to the SEC, but essentially to the entire crypto industry. On the one hand, if the SEC wins, it means that the crypto industry will be subject to serious regulatory scrutiny going forward. This raises concern as it will hinder innovation or worse yet, cause crypto platforms to travel overseas from the US.

Fox Business research considers the case from the tenure of former SEC chairman Jay Clayton. Clayton was seriously considering how to regulate cryptocurrencies. To do this, it has organized enforcement actions against several crypto scams. He also spawned 87 crypto-related actions during his tenure. But its action against Ripple continues to appear skeptical, according to the report.

First, the SEC did not accept the Ethereum token, which has many similarities with XRP, as a security alongside Bitcoin. The purpose of ETH has been much discussed by Ripple.

Fox Business has found that Bill Hinman, the SEC’s former director of corporate finance, held several meetings with people associated with Consensys in 2017 and 2018, which is highly linked to Ethereum. This was before Hinman’s famous speech declaring that Ethereum is not a security. Ripple supporters argue that these meetings may have influenced his decision.

Impact on XRP and its Investors

Ever since the lawsuit started, the XRP price has been struggling to gain ground in the market. Shortly after the lawsuit was filed, XRP fell by 70% and hasn’t even come close to its all-time high of $3 since then. This has prompted XRP holders to join the fight and file lawsuits against the SEC. XRP holders argued that the SEC’s action was not in their own interests. XRP holders, led by John Deaton, tried to intervene in the case from the start of the case until they had friend of the court status.

In summary Fox Business’s research report shows that the SEC’s move against Ripple is still in doubt.

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