Ripple has made it pretty clear that it believes it will win its lawsuit. What will happen to the dozens of banks? This case continues to produce encouraging signs of a favorable end for Ripple. The crypto industrys biggest regulatory case started in 2020 when the SEC accused Ripple Labs of successfully raising over USD 1B through sales of XRP tokens. Currently, XRP is changing hands at $ 0.29. The SEC complaint also holds accountable Christian Larsen, Ripple co-founder, and Bradley Garlinghouse, the current Ripple CEO, citing that they made significant gains in the process. And that Ripple, its two top executives named in the suit, along with millions of retail holders, should have known this all along, even though the agency never did. Please read our privacy policy and legal disclaimer. With a violent drop of over 5%, bulls got caught by surprise. XRP has traded sideways in a support zone from $0.37 to $0.41. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. On the date of publication, Josh Enomotoheld a LONG position inXRP, ETH and BTC. XRPLedgers native token XRP is currently trading sideways after a long-term downtrend. The SEC created a fund from the money it seized and offered Veri holders a buyback if they sold the tokens back to the SEC at a set price. At the time of writing, XRP has a market cap of over $20 billion and a single unit price of $0.44, less than 5% down from the previous week. However, you may visit "Cookie Settings" to provide a controlled consent. Ripple wins. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); Get the latest Crypto & Blockchain News in your inbox. If Ripple wins its case, it will not have to pay out any money and will be able to continue working on projects like those mentioned above. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Clarifying the same, Hynes added, "Winning on this motion does not mean the defense will win on trial. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. My understanding is the SEC seized 98% of the Veri tokens. #XRP returns to battling #Ether for the number 2 spot. These cookies ensure basic functionalities and security features of the website, anonymously. For now, there is no official announcement on the court's position. Bitcoin (BTC) price edges closer to the lower limit of its bullish structure after Thursdays market sell-off. Therefore, if Ripple can juxtapose similarities between XRP with ETH with the implication that XRP is a crypto coin, not a security it further bolsters the defendants case. The dark cloud that has hung over the Ripple network since 2020 would finally blow over, and Ripple Labs would enjoy a renewed and reformed reputation in the crypto market. It is not clear what will happen to the price of Ripple after the lawsuit. According to Ripple Labs, the XRP token is not a security. In terms of money, its quite obvious what would happen if they win. In 1946, the Supreme Court established a method for deciding whether or not an asset is defined as a security. Needless to say, this is the best-case scenario, and it assumes another bull market on the scale of last year's, which certainly isn't a given right now. 2023 InvestorPlace Media, LLC. But Bez expertly baited the first baseman, running instead back to home plate. FXStreet Its value resides in its fast processing speed. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The Commission also alleged that Middleton manipulated the price and volume of VERI on secondary digital-asset trading platforms during the VERI ICO.. DailyCoin is an online media outlet, with a focus to cover blockchain and crypto news, opinions, trends and helpful articles. With time, crypto enthusiasts have become numb to the battle. A positive or negative conclusion to the SEC lawsuit will drastically and irreversibly change the blockchain space in the US. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. Amid all this talk about regulating cryptocurrencies, ultimately, regulation proponents discover that you cant manage decentralized assets like you can centralized assets such as stocks. Two words might well decide the regulatory future of cryptocurrency. If Ripple loses the SEC case, more cryptocurrencies will likely be regulated by the SEC as securities moving forward. Its because he wants the option of going after them. In this case, traders may want to consider looking at some of the promising new altcoins that have appeared on the market in recent weeks, with several new tokens currently undergoing their own presale. Inexplicably, the first baseman bought it and chaos erupted. Required fields are marked *. Funds is a somewhat loose term which could refer to crypto and fiat currency. Ripple and other parties have since countered with claims that the SEC is biased in its assessment. Why Ripple thinks it's going to win. However, you may visit "Cookie Settings" to provide a controlled consent. Broker-neutral technology firm FlexTrade Systems FlexONE solution has once again emerged top among the best buy-side execution management systems. Supporters of the Ripple lawsuit are already hyped to win the case against the SEC lawsuit with the long delay in showing evidence from the SEC side. While this officially only pertains to regulation in the United States, the case will likely affect how cryptocurrency is handled elsewhere as other governing bodies worldwide follow the SECs example. Pay the SEC fine your costing investors were missing the bull run. Bearish scenario: Ripple loses the case, and the token gets banned worldwide - In this case, Ripple will need to find a different business model, and the price of XRP can crash to the lows of . On February 17, 2021, the Court issued an Orderapproving the Claims Process and Distribution Plan. Originally launched in 2012, Ripple aimed to be a fast and affordable way to transfer various fiat currencies across borders. A variation of the _gat cookie set by Google Analytics and Google Tag Manager to allow website owners to track visitor behaviour and measure site performance. Even if youre not an XRP holder, the result of the XRP lawsuit is expected to change the way cryptocurrency is regulated in the United States. It also does not guarantee that this information is of a timely nature. In other words, it's a bullish correction, with Ripple's case with the SEC the main driving force behind XRP's recent gains. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. You can always unsubscribe with just 1 click. There is no clear bullish/ bearish divergence in RSI. Click to email a link to a friend (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Reddit (Opens in new window), FlexTrades FlexONE captures Best Buy-Side OMS award, Saxo Bank reports higher FX volume for February 2023, Bitso launches Mastercard-backed crypto card in Mexico, HSBC and Nationwide block transactions with crypto exchanges. Ultimately, it would appear that this raging legal battle boils down to a game of definitions. The pattern element in the name contains the unique identity number of the account or website it relates to. They have joined other well-known companies such as Binance US, Swipe, and OKCoin that have stopped transacting or using XRP, leaving US investors in limbo. Seemingly XRP's fate is tied to the case and if the case turns in favor of Ripple, XRP's price is expected to at least pass its 2018 ATH of $3.40. You see, Bez has no choice but to run to first and nothing that happens on the play matters so long as the out to first is recorded. 1125 N. Charles St, Baltimore, MD 21201. Article printed from InvestorPlace Media, https://investorplace.com/2021/07/even-if-ripple-wins-its-sec-lawsuit-the-crypto-ballgame-isnt-over/. Note: All information on this page is subject to change. Just the day before yesterday, Ripple CEO Brad Garlinghouse was a guest on Bloomberg, talking about hopes for new talks with the U.S. Securities and Exchange Commission (SEC) once Gary Gensler takes over as chairman. At that point, a federal judge will either decide the case or have it go to trial. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. Let there be a new price action. If Ripple wins SEC lawsuit, only Bitcoin and XRP will be safe - John Deaton December 7, 2021 8:35 am UTC, Rick Steves "What's crazy ironic, is that, with Gensler at the helm, the lawsuit could ultimately give Ripple and XRP an advantage moving forward". SEC vs Ripple: Will One Lawsuit Decide the Fate of the Crypto Industry? Ripple has said they would move HQ and continue business outside of US. A buyback could be arranged for those in the U.S. Can #ETH investors honestly say theyre not worried? "If Ripple wins the case, the XRP price will most likely boost significantly and increase the price of other altcoins, at least in the short term," Chok told Stockhead. Analytical cookies are used to understand how visitors interact with the website. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. HSBC Holdings and Nationwide Building Society joined major UK banks in banning purchases of bitcoin and other cryptocurrencies via credit card following a recent regulatory crackdown. So if regulations won't happen til 1st quarter of '25 & Ripple wins/settles lawsuit before then giving $XRP the only asset with clarity, what would happen to the . CoinSwitch believes the crypto asset will surge to $17.0576 by 2030 due to the wide adoption of the asset. As Millennials and Gen Z become the dominant consumer class, the way payments are made is changing. Since creating a crypto wallet for the very first time, Finn has been captivated by the limitless scope and potential of Decentralized Finance and NFT technology. In December 2020, Ripples potential market growth was put to a halt after the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and its executives Bradley Garlinghouse and Christian A. Larsen for failing to register the networks native token as a security. A variation of the _gat cookie set by Google Analytics and Google Tag Manager to allow website owners to track visitor behaviour and measure site performance. This comes after Ripple co-founder Chris Larsen said that the company would keep its . Judge Sarah Netburn is performing an in camera review of the documents the SEC claims to be privileged information in order to decide whether they can be handed over to Ripple as part of the fact discovery. They would recover in value, exchanges would relist, and clarity would brought to the cryptocurrency industry (either way this happens!).. The cross-border remittance firm has expansion plans once Ripple puts the lawsuit behind it. On December 22, 2020, the SEC filed a lawsuit against Ripple Labs and two of its executives. As Millennials and Gen Z become the dominant consumer class, the way payments are made is changing. Ripple's chief executive has shared his views on possible outcomes of the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) over the sale of xrp, which the regulator claims to . Despite their earlier reservations about the altcoin, blockchain advocates feel they must consider the greater good. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. #XRPHolders who never sold win. Why Ariva World (ARV)? Twitter sets this cookie to integrate and share features for social media and also store information about how the user uses the website, for tracking and targeting. All rights reserved. If Ripple wins the case, exchange listing skepticism will be disregarded, and more XRP liquidity transfers will start in the US market. Although John E. Deaton has come to the conclusion that only Bitcoin and XRP would be safe after the abovementioned settlement, Ripple officials have stated they have gone forward with the lawsuit as a means to protect their interests but also the cryptocurrency industry. At the very least, XRP's decline today may be disappointing, but it offers the chance to buy the altcoin at a discount before it begins to make serious gains. Whats crazy ironic, is that, with Gensler at the helm, the lawsuit could ultimately give Ripple and XRP an advantage moving forward. If the SEC wins the lawsuit, it wont be good news for XRP. The big issue for the SEC is that, according to them, Ripple Labs and its executives conducted unregistered security offerings by selling XRP tokens to investors. Will Ethereums ERC-4337 deployment catalyze ETH price recovery after Silvergate FUD? The outcome of the SEC case will have consequences not only for XRP but for BTC, ETH, and the entire crypto community. Theres a reason Gensler wont comment on whether he believes #Ether is a security. But the main thing that it does is that it is creating a new way of transferring money around the world. When the XRP token launched in 2012, no one expected this humble cryptocurrency to spark one of the most iconic legal battles in blockchain history - the SEC vs Ripple lawsuit. Long before Ethereum was even a twinkle in Vitalik's eyes, Ripple was already one of the largest digital assets in the crypto market. The final judgment also appointed Holland & Knight, LLP, as Distribution Agent for the Fair Fund to, among other things, oversee the administration and distribution of the Fair Fund to harmed investors and Miller Kaplan Arase LLP as Tax Administrator to fulfill the tax obligations of the Fair Fund. The cookie is used to store the user consent for the cookies in the category "Other. If the regulatory agency admits that XRP is like any other crypto, it theoretically weakens its control over the regulatory future of cryptocurrencies something that Warren is basically demanding. A win for Ripple may be bullish for XRP and vice versa. But opting out of some of these cookies may affect your browsing experience. According to a Reuters report, Warren stated that she needed answers from Gensler by July 28 on the SECs authority to protect consumers investing and trading in cryptocurrencies, and determine what future congressional action was needed.. Thats the appeal of XRP and its ilk: the blockchain is an innovation you cant directly impinge. In partnership with Mastercard, Latin Americas most popular exchange, Bitso launched a debit card in Mexico offering cryptocurrency rewards on customers purchases. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. If the settlement includes a declaration that ongoing sales of #XRP are not securities, #XRP gets re-listed and clarity is established. When the XRP token launched in 2012, no one expected this humble cryptocurrency to spark one of the most iconic legal battles in blockchain history the SEC vs Ripple lawsuit. Ripple Labs would also be required to pay fines and penalties, and XRPs price would likely suffer because of the networks damaged public reputation. This legal action caused the XRP price to plummet from around 0.70 U.S. dollars to 0.20 U.S. dollars. The SEC vs. Ripple lawsuit has dragged on since 2020, with many twists and turns, some in favor of the payment giant. The U.S regulator seems ill-prepared to win the case, thus giving Ripple the upper hand. This cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website. The author has not received compensation for writing this article, other than from FXStreet. Bitcoin: Whats next for BTC after $65 million worth liquidations. On Wednesday, an XRP enthusiast on Twitter with the username @scaruso123 inquired as to what would happen in the interim if Ripple wins the lawsuit and the SEC appeals to the appellate court. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Ripple CEO: US Is Falling Behind Over SECs XRP Suit. "The lawsuit has gone exceedingly well, and much better . Necessary cookies are absolutely essential for the website to function properly. The latest development in the proceedings has nearly 13 documents being pulled out of public view. If the above scenario happens, ironically, only #Bitcoin and #XRP would be safe. The news of the lawsuit will have ripple effects throughout the entire crypto sphere (pun intended). In other words, crypto investors can stay in decentralized la-la land all they want. The lawsuit, which was filed in federal district court in Manhattan, accuses Ripple and its two co-founders of raising over $1.3 billion through "an unregistered, ongoing securities offering for digital assets.". The cookie is used to store the user consent for the cookies in the category "Analytics". What will happen if XRP wins the SEC lawsuit? Unfortunately for blockchain proponents, the Ripple lawsuit may not be a one-and-done situation; that is, a win doesn't mean the SEC will forever ignore cryptocurrencies. Analysts are starting to really think Ripple can beat the case . According to the Howey Test, a security must meet the following requirements: In the simplest definition, if you make a financial investment in business and expect to profit from other peoples hard work, your asset is a security. Three Japanese banks are set to develop a payment system that integrates their stablecoins on a public blockchain while satisfying legal requirements. Ripple is gearing up for win against US Financial Regulator SEC The SEC vs. Ripple lawsuit has dragged on since 2020, with many twists and turns, some in favor of the payment giant. It will be incredibly difficult for a tax agency to grab said investors for capital gains if those gains come in the form of like-to-like transactions. Ripple could have exactly what it needs to win over the judges. Nasdaq Finally, Gensler and Co claim that Ripple Labs knew that XRP should be treated as a security and chose not to inform their investors of this information. XRP Price Prediction - What Will Happen to Price if Ripple Wins SEC Lawsuit? The cookie is used to store the user consent for the cookies in the category "Analytics". Yes, it looks extremely likely that Ripple will either win the lawsuit at summary judgement, or settle favourably before then. The allegations have stifled XRPs price, which struggled to match its competitors during previous market cycles due to the fear, uncertainty, and doubt the case caused. The SEC alleges that Ripple conducted an unregistered $1.3 billion securities offering and named CEO Brad Garlinghouse and co-founder Chris Larsen in its legal action. Ripple meanwhile contends . The price of Bitcoin reached its highest peak of over $58,000, and other prominent altcoins such as Ethereum and Binance Coin capitalized on the market growth. XRP bulls consider the November 2022 level of $0.41 key for the altcoin and the bulls could push the asset to its target, once it begins recovery. XRP bag holders are waiting for the case to get over. SEC vs Ripple: Will One Lawsuit Decide the Fate of the Crypto Industry? The SEC has already begun cracking down on token staking, with top exchanges like Kraken being forced to cancel their staking services and pay $30M USD in fines. Ripple insists that the entire court case is due to the SECs mischaracterization of the XRP token and that the ICO was not an unregistered securities offering. Ripple and other parties have since countered with claims that the SEC is biased in its assessment. The high degree of leverage can work against you as well as for you. XRP holders who never sold win. The Ripple/SEC lawsuit: Filing ends Both the SEC and Ripple Labs, the company behind the ripple ( XRP) cryptocurrency, had until 30 November 2022 to submit a reply in support of their summary judgment motions, which were made public on 2 December 2022. The lawsuit concerning Ripples activities from 2013 to the present is slightly peculiar as it was filed in the final moments of the previous administration and is considered to be a means to stomp on the potential growth of XRP. The winning argument Ripple makes will be added to case law for future cases. We focus on delivering fast and objective news about cryptocurrencies and crypto markets with a swirl of passion. In a common enterprise: The investment contract is made in a joint enterprise. Ripple and the SEC were recently allowed to re-brief the court with new arguments on the issue amid last minute changes in the law concerning DPP. All rights reserved. The SEC also alleges that Ripple Labs also used billions of XRP in exchange for non-cash consideration, such as labor and market . The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. In its early days, Ripple was touted as an attractive option for banks and financial institutions looking to move funds internationally without being bogged down by complicated remittance issues. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. This could however mean one of the biggest settlements in history. How many different uses does a knife have? US Congressman Proposes Bill to Block Federal Reserve from Creating American CBDC What's Going On? Tax on profits may apply. Based on an average of price predictions given by the panellists, XRP could hit USD 2.55 by December this year if Ripple wins the case. The SEC does not like losing lawsuits. To be derived from the efforts of others: The final requirement implies that all profits are earned from the work and efforts of others. Copyright 2023 InvestorPlace Media, LLC. What happens if Ripple wins the lawsuit? Tokenizing the Titanic: New Partnership Brings Real Artifacts from Wreckage to NFT Market. Meanwhile, the blockchain company still claims fair use considering that it received a late notice from the SEC. The ledger uses an efficient consensus mechanism, which paves the way for fast, low-cost transactions. When the United States Securities and Exchange Commission filed legal action against Ripple Labs and its top-two executives in December, alleging that its XRP coin was in fact a security and that. The SEC can use the money to create a fund that helps reimburse harmed #XRPHolders.. The Currency Analytics. In the latest development in the legal battle between XRP investors and Ripple, the company has filed a new motion to dismiss the class-action lawsuit entirely. Broker-neutral technology firm FlexTrade Systems FlexONE solution has once again emerged top among the best buy-side execution management systems. Three Japanese banks are set to develop a payment system that integrates their stablecoins on a public blockchain while satisfying legal requirements. Still, a positive outcome for Ripple will almost certainly lift the XRP price to some degree, so it will probably end up paying to acquire some XRP now and hold tight. The decision is expected to have serious consequences for the controversial industry. The cookie is used to store the user consent for the cookies in the category "Other. Ripple disputes the charges made against them because XRP is, in fact, a currency and cannot be subject to laws under the securities act. What Ripple is doing Ripple does a lot of things. The SEC alleged that Ripple had violated federal securities laws by selling . The post XRP Lawsuit: A Huge Win Secured appeared first on The Motley Fool Canada. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. Although XRP suffered a loss of nearly 60% in price after the lawsuit began, it has recovered despite being subject to scrutiny in the US market and exchanges becoming wary of accepting XRP trades. The SEC wins. Necessary cookies are absolutely essential for the website to function properly. If Ripple were to win the SEC lawsuit, then it would not be regulated as a securities issuer and would not have to pay out $1.3 billion. Therefore, all eyes are on the defendant company as it pushes for the timely deposition of former SEC director William Hinman. For the company, it would mean an increase in liquidity, clients, and the growth of the XRP ecosystem in the US, making it available to be traded as a . Nothing herein shall be construed as financial, legal, or tax advice. Between breaking down complex crypto content into simplified, digestible chunks, Finn also doubles as an advisor for new protocols entering the space. XRP price could stand to gain from the payment giants win in the SEC vs. Ripple lawsuit. According to Fintech commentators like Bloomberg, the case will be wrapped within the first half of 2023. These cookies track visitors across websites and collect information to provide customized ads. Of course, the real interest lies in predicting by how much it will surpass its former ATH, although reaching $3.40 alone will equal a 660% gain. If the SEC wins the case, XRP (the native . Ripple goes public and immediately becomes one of the most valuable FinTech companies in the world, replacing SWIFT. Therefore, I wouldnt get too excited about the lawsuit one way or the other. No matter where you live, the outcome of the Ripple lawsuit will impact how crypto is taxed and regulated in your own country. A positive or negative conclusion to the SEC lawsuit. However, the same would be a rather unrealistic scenario as XRP's price growth would depend on macroeconomic . Its relative strength index (purple) is declining fast, meaning that it's oversold at the moment, yet its 30-day moving average (red) has recently overtaken its 200-day average (blue). More to the point, what is a security anyway? John Deaton enlightens that, If the U.S SEC wins its claim over its allegations against Ripple. "It now looks like a resolution will come in 2023 . In a part of his Axios interview that wasn't aired by HBO on March 7, Ripple CEO Brad Garlinghouse mentioned that his company may move out of the U.S. if it loses its much-talked-about legal battle with the U.S. Securities and Exchange Commission. Why stop at one when it successful addresses many. If Ripple wins the lawsuit, it will not have to pay out an additional 1.3 billion dollars, allowing it to continue working on projects. But, in December 2020, the crypto turned into the most scandalous one when SEC filed a lawsuit against Ripple Labs, allegedly claiming that the XRP token was a security . Ripple continues to be locked in a court case trying to establish the status of XRP. According to a Bitcoinist report, CBDCs are a key focus for the payment giant in 2023 and Brooks Entwistle, Managing Director of APAC reaffirmed this stating that Ripple is a solution provider to which central banks and authorities can turn. Proponents of cryptocurrencies insist that Ripple Labs has done nothing wrong. Doesnt make sense to me. XRP Price Prediction What Will Happen to Price if Ripple Wins SEC Lawsuit? If Ripple wins the lawsuit, then two things will happen that are terrible for the SEC: They will look weak losing a large, high profile lawsuit.