XRP Lawsuit: Here’s Why Experts Think Ripple Could Win the Case Against SEC

By Prashant Jha
Published September 18, 2021 Updated September 18, 2021
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SEC vs. Ripple Lawsuit

XRP Lawsuit: Here’s Why Experts Think Ripple Could Win the Case Against SEC

By Prashant Jha
Published September 18, 2021 Updated September 18, 2021

The XRP lawsuit filed by SEC against Ripple is drawing a near end, and nearly after 9 months of back and forth, experts have weighed in on the possible outcome of the case. The latest development in Ripple vs SEC case saw the defendants file for another seal motion for two exhibits from the Interrogatories Dispute, that the SEC filed under seal in support of its September 8, 2021, letter.

On the other hand, SEC has also filed to seal 13 key documents that Ripple has demanded, claiming it to be internal documents that cannot be put in the public domain. The biggest point of conflict is with former SEC director William Hinman’s draft speech that claimed Ethereum turned into non-security over time as the network development made it more decentralized. However, SEC claims those comments were made by Hinman in a personal capacity and thus cannot be used by defendants as the ground to dismiss the case.

Legal Experts Claim Ripple Would Win the Case

The SEC’s threat to Coinbase over its unrelated lending product has unified the crypto community against the SEC and also highlighted the flaws of existing security regulations. Jhon E Deaton from CryptoLaw pointed towards the Hinman Speech regarding Ethereum could play in Ripple’s favor.

Charles Gasparino from Fox Business talked to the SEC regarding the logic behind going after XRP but not Ether (ETH), to which the enforcement agency gave quite a vague response. According to Gasparino, SEC claimed Ether had a well-developed ecosystem that was decentralized enough to be deemed as non-security. While Ripple’s infrastructure is still being built, thus the token being used is considered a security.

Gasparino however argued that the timing of the SEC lawsuit calls for scrutiny since the case was filed just days before former SEC chief Jay Clayton’s departure.

XRP proponents even claimed the decision to give Ethereum a free pass from regulatory scrutiny was based on personal gains for SEC executives including Hinman and Clayton. While Ripple has claimed it won’t go for the settlement as it is confident of its chances, the outcome of the case could define the future of crypto regulations in the US.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
1086 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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