By Richard Hines
The long dragged war between the SEC and Ripple organization finally shows glaring signs of victory on the part of the Ripple Organization. The debate that has lasted for two years has finally seen hopes of a conclusion as allegations against the Ripple organization do not seem substantial enough to hold ground.
99% Chance of SEC Losing The Case
The chances of the SEC winning the case against Ripple have declined against all odds. “The Cryptocurrency Trial of the Century”, as described by Forbes editorial, paints this situation as the SEC being lost in a maze of its own making.
The claims by SEC stated that XRP tokens, created in 2013, were unregistered security tokens whose only utility was an investment contract as a payment method in a company. This claim stimulated reactions from the Ripple organization itself and users who were investors in XRP.
Many stated that even though the SEC claimed they were unregistered tokens, they have been in operation ever since and have turned in over $18 billion in revenue and sales. However, the Ripple organization noted that if the SEC continued to go further with this claim, they would pay a fine to lay this matter to rest.
What Gave Ripple The Upper Hand Over The SEC?
From the lawsuit’s inception, the SEC had the edge over Ripple with its proposal to regulate this currency alongside other cryptocurrencies. However, the balance of power shifted in favour of Ripple during the cause of the event.
The former corporate director of finance brought to the public’s attention the security of other tokens, as well as Ripple. In a speech he made, regarded as the “Hinman speech”, he said, “Bitcoin and Ethereum were not securities because their ledger has “decentralized” over time.”
Also, the SEC provided no proof to show that Ripple was aware of the status of their tokens as being unregistered and refusing to do anything about it. This lessened the blow brought on by the SEC to the court cutting down on the intensity of their claims.
However, legal analysts predict that if the SEC decides to take this one step further, appealing to the Supreme Court, they will not only face a brutal defeat but also lose some rights to the regulations of cryptocurrencies in general.