Gokhshtein hopes for a Ripple win and not a settlement.
Shortly after urging crypto enthusiasts to support Ripple’s case against the SEC, the founder of Gokhshtein Media, and former congressional candidate of the Republican Party, David Gokhshtein has disclosed what he thinks could be the worst-case scenario in the ongoing Ripple lawsuit.
According to Gokhshtein, the worst-case scenario that could happen in the lawsuit is Ripple settling with the Securities and Exchange Commission (SEC) because a settlement in the lawsuit would not provide regulatory clarity for the entire U.S. crypto industry.
“Worst-case scenario is Ripple settles, but I don’t know if they’ll provide clarity for the entire industry,” Gokhshtein said.
Based on Gokhshtein’s concerns, he said the industry needs the leading Silicon Valley blockchain company to win the lawsuit and not settle.
We need Ripple to win this case and not settle.
— David Gokhshtein (@davidgokhshtein) December 11, 2022
Gokhshtein’s comments came after Cardano founder Charles Hoskinson shared a rumor that Ripple and SEC may likely settle on December 15, 2022.
Gokhshtein: Ripple Win Will Birth Clear Crypto Regulation
Over the weekend, Gokhshtein called on cryptocurrency enthusiasts to root for a Ripple win regardless of whether they are fans of XRP or the blockchain company Ripple. Per Gokhstein, a win for Ripple would pave the way for clearer crypto regulation in the U.S.
“You don’t have to be a fan of Ripple or XRP, but you should be rooting for them to win their case against the SEC. [The lawsuit] would bring clarity to the #crypto industry. It would also keep innovation in the U.S,” he said.
Recall that in December 2020, the U.S. SEC charged Ripple for offering unregistered security in the United States. The case has lingered for nearly two years and is currently in the summary judgment stage. On December 2, 2022, the parties filed their summary judgment replies, with U.S. federal Judge Analisa Torres expected to rule on the matter on or before March 31, 2023.
SEC Ignores Call for Clear Crypto Regulation
Despite the enormous potential associated with crypto, the industry has suffered from a lack of regulation, which has continued to stifle its growth.
Top crypto stakeholders, including Ripple CEO Brad Garlinghouse, have urged the SEC to provide regulatory clarity for crypto to enable the industry to thrive. During the 2022 Collision conference in Toronto, Garlinghouse said the SEC has refused to go through the hard work of defining clear rules for crypto. He added that the agency prefers the regulation by enforcement approach.
“The SEC, instead of doing the hard work to define a new set of clear rules and regulations […] they instead decide we’re going to do regulation through enforcement, which is not efficient and I think has stifled innovation in the United States,” Garlinghouse was quoted as saying.
The SEC has refused to heed these calls. It insists that the U.S. securities laws are clear to determine what constitutes a security.
Garlinghouse: Ripple Will Settle With The SEC If…
While the industry is hoping for a Ripple win in the lawsuit, the SEC hopes to be declared the winner to continue its clampdown against crypto-related firms. If Ripple wins the lawsuit, U.S. policymakers may mandate the SEC to provide clear rules for the emerging market or appoint another federal agency like CFTC to oversee the industry.
However, there is a likelihood that the lawsuit could end in a settlement. Garlinghouse has commented on the possibility of a settlement.
Last month, Garlinghouse told Linqto Director of Member Sales Nick Burrafato that the blockchain company is prepared to settle with the SEC on the condition that the agency provides regulatory clarity for the asset class.
“I met with Brad Garlinghouse face-to-face, and he made it clear that [Ripple] is ready to settle with the SEC as long as they can get clarity on XRP,” Burrafato said.