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Ripple Will Lose Against SEC

The U.S. Securities and Exchange Commission will defeat Ripple in a highly followed legal dispute that will shortly go into its third year, according to Gene Hoffman, chief operating officer at blockchain company Chia Network.

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Federal judges, according to the former CEO of a publicly traded company, are wary enough to realize that most XRP buyers did so in the hope that “the number would go up.” Therefore, it is unlikely that Ripple and its supporters’ arguments regarding the purported utility of the cryptocurrency would succeed.

SEC has not lost a Section 5 case in decades

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The SEC has not lost a Section 5 case in decades, according to Hoffman, who has extensive experience working with the agency. Hoffman also noted that there is not much of a difference between XRP and LBRY Credits (LBC) tokens. network for the sharing of peer-to-peer material The SEC lost its case against LBRY in November when a judge determined that the startup had sold LBC tokens as unregistered securities.

Furthermore, Bill Hinman, the former director of the SEC’s division of corporation finance, notified the Ripple leadership in 2019 that their XRP distributions were considered to be unlawful. Hoffman acknowledges that the SEC’s treatment of Hinman’s controversial Ethereum speech from 2018 was “a fiasco,” but he is certain that it has nothing to do with the current situation.

The IT entrepreneur also accused Ripple of deceiving a lot of people in the cryptocurrency industry about the actual situation. It is unfortunate that so many people at Ripple misled so many others about this matter, he wrote.

According to Hoffman, just “quite few” of the top 100 cryptocurrency exchanges are not registered as securities in the US. The SEC began its complaint against Ripple almost two years ago. The well-known blockchain business is allegedly selling XRP tokens as unregistered securities.

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Annie

Coincu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.