The crypto community wants Ripple to win in the SEC case for good reason.
In December 2020, the US Securities and Exchange Commission surprised many in the crypto community, particularly XRP community members and Ripple. Notably, the regulator filed a legal complaint accusing Ripple and its executives of engaging in the offer and sale of an unregistered security.
As part of its claims, the SEC asserts that XRP, the underlying token of the alleged investment contract, is security, defying decades of securities law precedence as explained by Attorney John Deaton. To crypto community members, the case is part of the SEC’s broader plan to bring the crypto markets under its regulation through enforcement.
The case, which Forbes dubbed the cryptocurrency trial of the century, could see the SEC obtain legal precedence to launch enforcement against other projects. It does not bode well for the crypto markets, as SEC chair Gary Gensler has continued to assert that Bitcoin is the only crypto he is unwilling to label as security.
For this reason, the crypto community desires an outright Ripple win, as previously reported. FOX Business senior correspondent Charles Gasparino recently reiterated the fears of the crypto community in the face of such an outcome in a tweet yesterday.
BREAKING: #cryptocommunity sees a bloodbath if @SECGov prevails against @Ripple in the form of more regs/oversight that will impact nearly every sector including the exchange biz given @GaryGensler's desire to force registration of every coin but $BTC. We discuss now @FoxBusiness
— Charles Gasparino (@CGasparino) January 10, 2023
In response, Attorney Jeremy Hogan explains why the Ripple case is so significant and gives hope to the crypto community despite the LBRY loss. The lawyer who follows the case opined that Ripple embodied the crypto community’s best response to the perceived bullying from the regulator. Consequently, he believes that a Ripple defeat would be akin to breaking the crypto industry’s last line of defense.
“If Ripple’s kung-fu is not good enough, no one’s is,“ Hogan wrote.
The SEC's case was weak and ill-conceived from the start. Ripple put up the BEST defense money can buy. Ripple is literally the crypto communities' Jet Li.
If Ripple's kung-fu is not good enough, no one's is.
— Jeremy Hogan (@attorneyjeremy1) January 11, 2023
Recall that Deaton recently asserted that the SEC has already been emboldened on its regulation by enforcement path by the LBRY win and the FTX collapse.
Conversely, a Ripple win would represent a win for crypto, particularly for XRP, which has remained under a cloud of uncertainty during the lengthy legal battle. Speculation is at a fever pitch as the case nears a resolution.