SEC and Ripple the case has been going on for a long time, the case; There has been much speculation about what the outcome and the effects of the legal battle will mean for cryptocurrencies. Lawyer John Deaton, founder of CryptoLaw, an XRP advocacy movement, cryptocurrency warned that his community should be concerned about what the Securities and Exchange Commission (SEC) is trying to achieve with its lawsuit against Ripple:
“Even if you hate the Ripple company and despise the project’s digital asset, XRP, you better pray that the SEC fails at what it’s trying to do. This will affect everyone.”
The attorney’s argument is basically that the way the SEC framed its lawsuit against Ripple in its lawsuit against the company was particularly risky. Because if the commission is successful in the Ripple lawsuit, the outcome of the lawsuit can also be applied to any other cryptocurrency in existence.
The SEC currently considers Ripple’s “XRP token” sale an “unregistered security” sale. Deaton believes the statement currently makes other cryptocurrencies feel safe because they interpret it to apply only to XRP, but according to the legal expert, the argument is; It covers everything that could pose a threat to all crypto assets, including Bitcoin.
To support his argument, Deaton used the SEC’s modified complaint filed against Ripple in February. He pointed out that any other cryptocurrency can replace XRP and that the claims made may apply to them as well.
He also said that Bitcoin advocates should think again if they think they are safe because, according to Former Commissioner Joseph Grundfest, in the past the SEC has “sometimes” considered Bitcoin a security.
The warning seems pretty ubiquitous. Many crypto advocates are likely to feel this way, as there is almost a consensus in the community that the outcome of the Ripple lawsuit will have far-reaching implications for the community and the powers the SEC will wield over the community.
In addition, if we look at the latest developments in the case; Ripple, Judge Netburn; It decided that the SEC should respond in detail to Ripple’s inquiries about how the commission reached its conclusion on the state of Bitcoin, Ethereum, and XRP using the Howey Test, and Ripple scored another victory.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.