XRP Lawsuit News: A massive decline in the digital asset industry due to the recent debacle ofs FTX crypto exchange has fired up the urgent need for legit regulations. However, amid this heated debate, experts are looking over the outcome of the US SEC Vs Ripple lawsuit for the much need clarity.
Why XRP lawsuit is crucial for crypto?
Stuart Alderoty, Ripple’s General Counsel asserted his view on how important the ruling in the XRP lawsuit is for the crypto industry. He stated that no matter how one could dissect it but the experts are admitting the importance of the XRP lawsuit.
He added that the outcome of the Ripple case will most likely have a major effect on the digital assets future in the US. However, Gary Gensler, SEC chair has stood his position and wants the commission to completely look over the digital asset industry. Meanwhile, summary judgment in the XRP lawsuit is expected in the first half of 2023. Read More XRP lawsuit News Here….
As per reports, Joseph Hall, a former executive at SEC commented that the recent debacle could influence the court’s view. He added that the US watchdog will strive to make it clear that if the judge rules it the other way then they won’t have the tools to counter FTX kinds of events in the future.
SEC’s major problem
In the crucial lawsuit, SEC brought up an argument claiming that Ripple is a common enterprise. While this assertion has again become a major problem for the commission. However, the defendants have stated that the XRP doesn’t meet the security test as sales were done in the secondary market. It adds that there was no such pooling of profits.
However, Ripple General Counsel stated that Selling an asset on a secondary market is similar to a commodity. These assets should be regulated same manner.
