John Deaton, a lawyer and prominent advocate for XRP, believes that the outcome of the ongoing legal case between Ripple and the United States Securities and Exchange Commission (SEC) will have a significant impact on the cryptocurrency markets. According to Deaton, if the ruling favors Ripple, it will not only cause XRP to rally, but other cryptocurrencies, including Bitcoin, Litecoin, and others, will likely follow suit.
XRP is the native currency of the XRP Ledger (XRPL), and the SEC has accused Ripple of selling it as an unregistered security during their initial coin offering (ICO) that raised billions of dollars. This legal case revolves around whether XRP should be classified as a security or a commodity.
Deaton recently took to Twitter to underscore the importance of this case and its potential ramifications for the broader cryptocurrency industry. He believes that if the presiding judge rules in favor of the SEC, it will further strengthen the ongoing momentum against cryptocurrencies, supported by politicians. This could potentially hinder the growth of the industry in the United States. He specifically mentions that an unfavorable ruling would adversely affect other coins, including Bitcoin, which the SEC has already classified as a commodity.
The decision of Judge Torres, who is presiding over the case, becomes increasingly significant with each passing day. If the ruling is unfavorable for XRP, it will strengthen the status quo with more political momentum behind Gary Gensler, Elizabeth Warren, and Brad Sherman’s anti-crypto campaign. However, if the ruling is favorable for XRP, it will be great news for other tokens as well.
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Meanwhile, the SEC has been intensifying its crackdown on cryptocurrencies in recent months. The regulator has filed lawsuits against Binance and Coinbase, two of the world’s largest cryptocurrency exchanges, accusing them of facilitating the trading of unregistered securities. In these lawsuits, the SEC cited specific coins like Cardano, Solana, and Algorand as examples of unregistered securities. The legal battles between the SEC and these exchanges are expected to be prolonged, and they could potentially bring regulatory clarity to the industry.
Many crypto supporters in the United States are concerned about the regulatory actions taken by the SEC. They fear that if the community does not fight back, they will be left with a limited number of tokens to trade, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Notably, these tokens are among the oldest projects in the industry, with most of them operating on proof-of-work networks. This concern stems from the belief that the SEC’s actions may stifle innovation and limit the availability of new and potentially groundbreaking cryptocurrencies.
As for XRP, its price has remained relatively stable and has maintained a position in the top 10 cryptocurrencies. Although there were initial price gains after a court ordered the unsealing of documents related to William Hinman’s speech in 2018, XRP prices have dipped below $0.60, representing a roughly 3% decline in the past week.
In conclusion, the outcome of the Ripple-SEC case is highly anticipated within the cryptocurrency industry, with many stakeholders closely watching the proceedings. John Deaton’s belief that the ruling will impact not just XRP but also the broader cryptocurrency market reflects the significance of this case in shaping the future of crypto regulations in the United States. As the legal battle continues, it remains to be seen how the judge’s ruling will ultimately shape the industry and its various cryptocurrencies.
