Terrett says a ruling in the case could come at a critical time for the crypto industry.
FOX Business Journalist Eleanor Terrett recently drew attention to the United States Securities and Exchange Commission (SEC) case against Ripple over whether XRP is an unregistered security.
In a FOX Business article published yesterday, the journalist posits that a ruling in the extended legal battle could come at a significant time for the nascent market in the United States. Notably, the industry faces increased uncertainty as U.S. regulators appear to be launching an industry-wide crackdown in the wake of the Terra ecosystem and FTX collapse last year. This, coupled with a lack of clear rules, puts the industry in a “regulatory void,” according to Terrett.
As previously highlighted by Attorney John E. Deaton, who represents over 75,000 XRP holders as a friend of the court, the ruling in the Ripple case provides an opportunity for the nascent market to receive a level of clarity pending legislation from congress. The attorney believes that the courts would continue to fill this gap for the next two years as he does not expect legislation from the current group of legislators, some of which have been burned from their association with disgraced FTX founder Sam Bankman-Fried.
Recall that the SEC case against Ripple kicked off after the agency filed a complaint against Ripple in December 2020, alleging that its sales of XRP to fund its business breached securities law. Furthermore, the commission asserted that XRP satisfies the “Howey Test,” which offers metrics for what can be considered an investment contract. While Ripple does not deny conducting XRP sales, it refutes the existence of any investment contract, further asserting that the SEC failed to give fair notice of its enforcement action.
Notably, the case is currently on its last legs, with the community anticipating a ruling from Judge Analisa Torres in the coming days, as predicted by pundits. While XRP holders hope for a Ripple victory, Terrett, reiterating views previously espoused by her colleague Charles Gasparino noted that the Terra and FTX collapse could sway the decision. Recall that Gasparino bet Deaton a steak dinner on the case outcome citing this perspective.
Despite this, recent motion rulings appear to favor Ripple, as highlighted in previous reports.
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