Why XRP Lawsuit Is More Important Than Ever For SEC?

XRP Lawsuit: The arrest of FTX’s Former CEO, Sam Bankman-Fried (SBF) turned out to be the biggest positive news for the crypto market in a very long time. He was arrested by the Bahamian authority just before the day of his hearing before Congress. However, a Lawyer involved in the XRP lawsuit has suggested some more big actions to come ahead of the arrest.

SEC just tag along over SBF?

The U.S. Securities and Exchange Commission (SEC) pressed multiple charges against the SBF. The commission accused the FTX’s Ex-CEO of organizing a scheme to defraud equity investors, violating Securities law, and more.

Ripple General Counsel, Stuart Alderoty stated that the SEC’s tag along complaint against SBF is just in order to recover funds for FTX’s equity investors. This is not for the customers who have been left holding the bag amid bankruptcy court.

XRP lawsuit only chance for SEC?

However, SEC Chair, Gary Gensler in a statement mentioned that the agency is ready to take action against other crypto companies that are violating U.S Securities laws.

To this John Deaton, Amicus curiae and XRP holder’s lawyer replied that 4 months ago he predicted that the SEC will sue an exchange by the end of this year. However, the commission went on to sue Coinbase.

XRP lawyer mentioned that he didn’t expect that this will go down with the FTX fraud. At the same time, Gensler is planning to sue an exchange or exchange for months now. However, it is not the end yet, but this could happen by the end of the first quarter of 2023.

He added that after failing to take action against the FTX and SBF, the Ripple XRP lawsuit has become more important than ever for SEC. As this will be kind of last chance for the agency to impose regulations over the crypto market.