A researcher in the Ripple (XRP) community stated that Stellar and XLM could be in trouble if the SEC (American Stock Exchange) recognizes XRP as a “security”.
Community researcher Leonidan Hadjiloizou recently shared a tweet. In his tweet, he asked the XRP community’s opinion of the company’s co-founder and former CTO, Jed McCaleb, on which side he would choose in the Ripple-SEC war (if he did).
According to Hadjiloizou, if the SEC wins the case and therefore XRP is considered a security, Jed McCaleb himself and the Ripple rival company he founded could have a hard time. If the court decides that XRP is a security, it could decide that McCaleb broke the law by selling this potentially unregistered security (McCaleb had received 9 billion XRP as compensation from Ripple under the “Settlement Agreement”).
What is most likely? Jed tests as an expert witness for Ripple or the SEC?
PS1:If he believed XRP is a security then he broke the law by selling unregistered securities after the lawsuit was filed.
PS2:XLM might get in trouble if XRP is deemed a security on a technical lvl.
— Leonidas (@LeoHadjiloizou) October 16, 2021
According to the researcher, McCaleb will not be the only one in trouble when XRP is recognized as a security, but it will also negatively affect XLM, the native token of Stellar that McCaleb founded, and perhaps face similar charges!
So far, the SEC has not taken any legal action against Jed McCaleb, who co-founded Ripple Labs with Chris Larsen. Also, CEO Brad Garlinghouse and Ripple Labs are now defendants in the SEC’s lawsuit against Ripple.
Jed tried to sell his 9 billion XRP in parts, but as of September 1, 2021, he did not put any of his remaining assets on sale.
Let’s see if the SEC’s decision to sue will hurt Stellar and XLM, which is expected to have great potential. Do not forget to share your views with us.