Again Ripple vs SEC
I have to write again about the US SEC. What to do is the topic is almost endless and it largely determines the state of the crypto market. This is a reality we have to face.
We constantly refer to the judicial case Ripple as an example of the loss of the Commission. However, it is still early to celebrate the final victory. To begin with, Ripple’s winnings were far from complete. The judge admitted that some of the Ripple coins are not securities. Again, just the part that’s on the market. But the coins that were handed over to institutional investors at the placement are already considered securities. These are, in any case, significant volumes.
The SEC takes full advantage of the situation and demands that Ripple Labs pay a $2 billion fine. Recall: the Commission accused Ripple Labs of illegally raising $1.3 billion. I would point out that it was not a case of attempted fraud, financial and tax abuse, etc. The charges relate solely to the lack of registration.
A spokesman for Ripple Labs said that the SEC’s actions were not following the letter and spirit of the law, but an attempt to intimidate Ripple and the crypto industry in general.
Since there was an initial court ruling, some form of punishment was inevitable. The other thing is, the $2 billion figure looks totally inadequate.
This amount is intended to be a demonstration for the industry, a role model rather than a proportionate punishment.
Now the industry is trying to make predictions about what the final court decision will be. Most experts believe that the solution will be a compromise. Most often called the figure of $200M. I don’t rule out that someone has already included a tote and is looking forward to the results of the case.
A year and a half ago, the Ripple case was of immense importance to the industry. Now the impact on the market will be far less severe. Rather, it will be the final point in a case that will go down in history as one of the turning points in the development of the industry.