XRP Is The Most Important Altcoin In The Crypto Space Right Now.
The Ripple (XRP) vs. SEC case has been dragging on for nearly two years. Following the SEC’s lawsuit against Ripple Labs, the two entities have engaged in one of the biggest legal battles in the crypto sector to date. As the deadline approaches, John E. Deaton, founder of the American law firm Deaton Law Firm, has indicated how critical the final decision is to crypto in general.
In response to a tweet by American entrepreneur and Bitcoiner Jason A. Williams, Deaton stated that the SEC’s case against XRP makes XRP by far the most prominent cryptocurrency in the crypto world right now. “Why is XRP important?” Jason asks in his tweet. It’s worth noting that Deaton is also implicated in the XRP case.
The SEC claims that XRP (Ripple’s native coin) is a security, claiming that Ripple Labs and two of its executives benefitted from token sales without meeting the requisite standards or taking the necessary measures to register it as a security.
Deaton pointed out that if the final ruling in the case goes against Ripple Labs, it would spell doom for all other altcoins because they could be classified as “unregistered securities” by the SEC and any subsequent ruling by an American court, given that judgments in some cases are influenced by previous rulings on similar issues.
According to Deaton, this is a scenario that most altcoins will certainly experience if Congress does not provide regulatory clarity on crypto that defines the asset class’s status in the overall financial market.
The Securities and Exchange Commission filed a lawsuit against Ripple Labs and two of its executives in December 2020. When the SEC initiates a lawsuit against a crypto firm, the firms frequently cave in to the regulatory body’s demands and pay the fines levied. Ripple Labs has opted for a trial instead.
The trial has been going on for almost two years, with both parties providing new evidence and clearer arguments on a regular basis. The lawsuit has had some negative consequences for XRP: Due to the lawsuit, major cryptocurrency exchanges delisted the coin.
The SEC has requested that the testimony of up to ten individuals brought forward by Ripple Labs be suppressed, a move that the crypto community feels is intended to put pressure on the defense team. Despite the conflict, XRP has maintained its place as a ‘top-10’ crypto in terms of market valuation. It is presently trading for $0.34, up 7% in the last seven days.
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