SEC has lost as it is Not Protecting Investors Following Its Lawsuit Against Ripple (XRP).
The cryptocurrency community, including Ripple enthusiasts, has widely expressed their views on the recently published cryptocurrency executive order by the Joe Biden administration.
One major topic of discussion of the cryptocurrency executive order is the main objective of the directive.
“The [executive order] will help position the United States to continue to play a leading role in the innovation and governance of the digital asset ecosystem at home and abroad in a way that protects consumers,” excerpts of the executive order fact sheet read.
Following the objective of the executive order, Ripple enthusiasts believe the Securities and Exchange Commission (SEC) has not been fair to investors with its lawsuit against the blockchain company that has lingered for over a year.
SEC Lawsuit Hurting Ripple Investors
In contrast to the executive order’s focus on investor protection, the SEC failed to comply with this directive by going forward with the lawsuit, thus resulting in the underperformance of the company’s native cryptocurrency XRP.
Recall that since Ripple and two of its executives, including Brad Garlinghouse, were charged for conducting an unregistered security offering, several U.S.-based exchanges were forced to discontinue support for XRP.
The development had on several occasions caused XRP to experience wild fluctuations in prices depending on the outcome of each ruling.
The lawsuit has also continued to threaten XRP’s position in the global cryptocurrency ranking. XRP, which was in stiff competition with Ethereum (ETH) over which cryptocurrency would retain the second position behind Bitcoin, is currently ranked sixth following the SEC lawsuit.
While the SEC is bent on making an example out of Ripple, the blockchain company is poised to defend the cryptocurrency industry from the incessant charges leveled by the securities regulator on crypto-related firms.
No Winner in the Lawsuit
As the case drags on, Joseph Grundfest, a former SEC commissioner, said in a recent interview that there will not be a winner in the case regardless of the lawsuit’s outcome.
“From a social perspective… no matter how this turns out we’re gonna be losers.”
“From a social perspective… no matter how this turns out we’re gonna be losers.” Grundfest predict the damage the @SECGov has caused to itself and the crypto space by suing @Ripple, on @ThinkingCrypto1 👇 pic.twitter.com/hpQ1bC2fad
— CryptoLaw (@CryptoLawUS) March 10, 2022
Grundfest may be right to a large extent. The case is tipped to end in a settlement where both parties would have to accept certain terms.
However, the lawsuit has turned the public, especially cryptocurrency enthusiasts, against the SEC, with many individuals suggesting that the agency is only going after cryptocurrency companies for its selfish interest.
Ripple has also lost hundreds of millions of dollars worth of value throughout the lawsuit, and it will take a while before the company recovers from this loss.