The SEC believes that the XRP token is a security because, in their view, it fits the definitions and requirements of a security provided by the Howey Test. Last month, the SEC and Ripple both submitted motions for summary judgment, meaning both are basically asking the presiding court to come to a decision and end the case rather than go to a full trial. 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 . The outcome of the Veritaseum case could provide guidance to XRP holders looking for answers about what will happen to their assets. 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. Given that XRP is still 86% down from its 2018 ATH of $3.40, and given that it failed to set a new ATH in the 2020-21 bull market (because of the legal case), there's a very strong chance that its price will rocket once its tussle with the SEC is resolved. You also have the option to opt-out of these cookies. This implies that buyers collect their funds to profit from a shared enterprise. Doesnt make sense to me. Eventually, Bez found himself safe at second, scoring the baserunner on the silliest of errors. You also have the option to opt-out of these cookies. Thus, the first baseman only has to catch the ball from third and step on the base. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines. Ripple and other parties have since countered with claims that the SEC is biased in its assessment. These cookies ensure basic functionalities and security features of the website, anonymously. Are Payment Cards To Face The Same Fate As Cash In The Virtual Age? Following that, he asked whether Ripple had the authorization to operate in the United States until the final decision . 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. This question has been asked many times by the thousands of XRP holders who await a conclusion to the SEC v. Ripple lawsuit, but no answer has been able to satisfy the inquiring minds. Unlike Bitcoin or Ethereum, where new coins are created through the mining process as a reward, the XRP amount is limited to 100 billion coins. Other countries follow suit and deem XRP a currency. The currency is experiencing a daily price hike of around 30%. The app allowsusers to research more than 1000 stocks and ETFs, curate a portfolio based on risk rankings assigned to each security, and buy fractional shares for as little as $1. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". 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. Sign up below to get this incredible offer! These cookies track visitors across websites and collect information to provide customized ads. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. 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. Officially speaking, the XRP lawsuit refers to a case made by the SEC against Ripple Labs and two of its executives, CEO Brad Garlinghouse and his co-founder Chris Larsen. Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category . Real Rewards Travel Review Invite Earn Cryptocurrency, Ariva Club (ARV) are Highly Sensitive and Relevant to Requirements of Tourists, ARIVA DIGITAL (ARV) CENTRALIZED AND DECENTRALIZED TOURISM NETWORKS, Ariva Wonderland (ARV) Travel Metaverse for Local and Global Tourism Sector, Unique Virtual Assets as Non-Fungible Tokens (NFTs) Using Cryptocurrency, Allowing Players to Purchase Virtual Assets with Cryptocurrency, Axie Infinity Cryptocurrency As A Reward For In-Game Achievements, Play-To-Earn Cryptocurrency Games In-Game Economies and More. Ripple CEO: US Is Falling Behind Over SECs XRP Suit, Voyager Users Vote for Binance US Takeover: Regulators Claim Deal Leaves Execs Off the Hook. 2023 FinanceFeeds Limited. 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. To be derived from the efforts of others: The final requirement implies that all profits are earned from the work and efforts of others. 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. What to expect if Ripple wins In partnership with Mastercard, Latin Americas most popular exchange, Bitso launched a debit card in Mexico offering cryptocurrency rewards on customers purchases. All rights reserved. ByJibin George. I know the SEC offered a buyback of the Veri token but I do not know the specifics. XRP: Going from Long to Short. Why is the U.S. Securities and Exchange Commission going after Ripple Labs? For now, there is no official announcement on the court's position. In particular, the importance of a couple of rulings and a bull market to transform XRP into the only altcoin with regulatory clarity in the United States. As Millennials and Gen Z become the dominant consumer class, the way payments are made is changing. 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. By clicking Subscribe, you agree to our Privacy Policy. On December 22, 2020, the SEC filed a lawsuit against Ripple Labs and two of its executives. 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. In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have rebounded slightly in February. In other words, it's a bullish correction, with Ripple's case with the SEC the main driving force behind XRP's recent gains. The pattern element in the name contains the unique identity number of the account or website it relates to. Will Ethereums ERC-4337 deployment catalyze ETH price recovery after Silvergate FUD? In this scenario, both the SEC and Ripple win, but only Bitcoin and XRP would be safe as John Deaton points to fears that ETH could be next in line for an SEC lawsuit. Crypto tokens are sold and traded on secondary markets by thousands of people every day, so why does XRP have to bear the full force of the SECs jurisdiction? Coins reached new all-time highs, with Bitcoin leading the cryptocurrency bull run charge. 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. With time, crypto enthusiasts have become numb to the battle. 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. In that case, it will likely set a precedent for how other cryptocurrencies like Ethereum are regulated. Back in January, for instance, the court must decree that the SEC has to hand over emails relating to an important speech Bill Hinman gave in 2018, which concerned whether BTC and ETH are securities (and which may also concern XRP). First only by a few nations, and eventually by all the nations. The lawsuit, filed on 22 December 2020, alleges that Ripple raised over $1.3 billion through illegitimate means. What will happen if XRP wins the SEC lawsuit? How many different uses does a knife have? It's just that it can be argued at trial. The author has not received compensation for writing this article, other than from FXStreet. Japanese banks to trial stablecoin payment system, Binance adds support for African currencies: Liberia, Sierra Leone, Gambia, Mauritania, Cape Verde, InvestCloud launches front-to-back single solution for advisors and wealth managers, Step launches stock investing for teens and young adults. According to Ripple Labs, the XRP token is not a security. What Is the Best EV Stock to Buy Now? The move is another blow for the crypto traders who recently saw a sizable number of banks deciding not to finance the wobbly asset class.. The Currency Analytics. All rights reserved. Bitcoin Price and Ethereum Prediction: Can BTC Continue to Soar Above $24,000 and What's Next for ETH? The Howey Test is the framework used to define whether the XRP token is a security. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss. Broker-neutral technology firm FlexTrade Systems FlexONE solution has once again emerged top among the best buy-side execution management systems. But opting out of some of these cookies may affect your browsing experience. XRP price could stand to gain from the payment giants win in the SEC vs. Ripple lawsuit. Between motions, media confrontations, and internet rumours, we've heard it all. The multi-billion-dollar lawsuit targeted Ripples activity from 2013 onwards. Its because he wants the option of going after them. XRP prices have been surging recently after a series of legal victories on Ripple's end against the SEC. 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. Necessary cookies are absolutely essential for the website to function properly. The high degree of leverage can work against you as well as for you. Therefore, all eyes are on the defendant company as it pushes for the timely deposition of former SEC director William Hinman. The trend of deeming other, lesser known Cryptos a security is broken. These penalties would be because of selling unregistered securities to investors in exchange for money. The cookie is used to store the user consent for the cookies in the category "Analytics". At this point central banks, institutions, and businesses will begin to use XRP to make transactions. But what regulatory authorities can do is sit at first base and force the out. Why Ripple thinks it's going to win. Well, everything. 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. Can #ETH investors honestly say theyre not worried? SEC vs Ripple: Will One Lawsuit Decide the Fate of the Crypto Industry? It is very difficult to win a motion to strike; more than likely, Ripple will have the opportunity to present evidence and argue the fair notice defense throughout most or all of the case. Tokenizing the Titanic: New Partnership Brings Real Artifacts from Wreckage to NFT Market. Information on these pages contains forward-looking statements that involve risks and uncertainties. On February 17, 2021, the Court issued an Orderapproving the Claims Process and Distribution Plan. If you want to collaborate with DailyCoin and become our contibutor, please contact us at contact@dailycoin.com. Three Japanese banks are set to develop a payment system that integrates their stablecoins on a public blockchain while satisfying legal requirements.