By George Ward
In the opinion of prominent journalist Charles Gasparino, the crypto industry might witness another massive bloodbath should the US regulator win its legal tussle against Ripple Labs. The Fox Business host took to his Twitter handle to share his view with the crypto community as the sector awaits the conclusion of the long-drawn court case involving Ripple and the SEC.
A Looming Bloodbath
According to Gasparino, if the US Securities and Exchange Commission (SEC) wins the case over the crypto giant Ripple Labs, every crypto asset would be hit, bar Bitcoin. He added that the event will have shocking consequences for the broader crypto industry and will affect not only Ripple Labs and its token, the XRP.
Furthermore, the famous journalist forecasts that an SEC court victory over Ripple would derail the fledgling industry’s progress. Not only will the prices of crypto assets be impacted, but there will also be stricter regulatory oversights on the industry.
Gasparino, like others, believes that the SEC, under the supervision of Gary Gensler, has been aggressive in enforcing regulations in the industry. As a result, the space will see more of the same approach should the regulator prevail in the ongoing court case with Ripple.
In a discussion on Tuesday’s Fox Business show, Gasparino explained that Gensler would force the registration of every crypto token as securities except Bitcoin. He noted that every part of the crypto business would be affected by the SEC’s approach, which includes but is not limited to token registration, oversight, asset supply, and a host of others.
Gasparino previously tweeted what he termed a “nightmare crypto scenario,” where he expects Ripple to lose the case in court. However, at that time, the renowned journalist only stated the possibility of Gensler targeting Ethereum over its token sales.
According to him, the SEC wants to go after the two best crypto assets by crippling them. It is worth noting that Gasparino believes that only Ethereum and Ripple are tangible digital assets, while Bitcoin technology needs to be updated.
XRP Faces Imminent Slump
In a recent talk, US attorney Jeremy Hogan, a keen observer of the long-running Ripple-SEC court battle, shared his opinions of the case’s outcome. Commenting on what might happen to XRP should the SEC legal team get the upper hand. Hogan stated that he expects XRP to lose 25% of its value.
Hogan believes that in the worst-case scenario, XRP would be banned from circulation in the United States should the SEC prevail in court. He added that America accounts for 25% of XRP’s transactions.
Meanwhile, Brad Garlinghouse, in a 2021 interview, stated that should Ripple lose the case against the SEC, the company could consider relocating out of the US to a more crypto-friendly country. Industry analysts expect the long-drawn court tussle to be resolved within the first quarter of 2023.