The Ripple vs SEC lawsuit has reached its final stages, and both parties are confident of a victory. Recently, the former director of the US Securities and Exchange Commission (SEC), William Hinman’s 2018 speech was made public upon the court’s directive. This speech is expected to have a significant impact on the case. While the Ripple community remains optimistic about their chances, Aaron Kaplan, the founder and CEO of crypto brokerage firm Prometheum, has a different perspective.
According to Kaplan, the SEC has an edge over Ripple in this case. He draws parallels between this lawsuit and the LBRY Credits case, in which the SEC took the content distribution decentralized blockchain platform to court in March 2021. LBRY was charged with violating securities laws by offering unregistered LBC tokens, and the court ruled in favor of the Commission. LBRY CEO Jeremy Kauffman expressed concerns about this decision, stating that it sets a standard to classify every crypto as a security.
Kaplan believes that both cases share similar causes of facts and could have the same outcome. He anticipates that the SEC will win this case, as every indication points to a decision in the Commission’s favor. However, Kaplan’s prediction has not been well-received by the Ripple community, who firmly believe that the SEC has no valid argument against the blockchain company.
Attorney John Deaton, who represents XRP holders in the ongoing lawsuit, also disagrees with Kaplan’s projection. He argues that Kaplan has no understanding of the Ripple vs SEC case and questions the validity of the SEC’s legal theory. Deaton asserts that the asset itself is never considered a security in the universally accepted Howey test, except in the SEC’s legal theory in the Ripple case. He dismisses Kaplan’s arguments as erroneous and mere support for the SEC.
It is noteworthy that Kaplan has been known to align with the SEC’s regulatory approach. During a House Financial Services Committee hearing, he expressed his support for SEC chair Gary Gensler’s regulatory policies. This has raised questions about Kaplan’s impartiality in analyzing the Ripple vs SEC case. The fact that Prometheum, Kaplan’s company, became the first-ever Special Purpose Broker-Dealer (SPBD) for digital asset securities after receiving approval from the SEC has also caught the attention of industry observers.
Amidst the differing opinions and predictions, the outcome of the Ripple vs SEC case will have a significant impact on the XRP price. If Ripple emerges victorious, many expect the price to skyrocket to a new all-time high. However, if Kaplan’s prediction materializes and the SEC wins, there could be a considerable fall in the XRP price.
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In conclusion, while the Ripple vs SEC lawsuit nears its final ruling, there are differing opinions about the outcome. Aaron Kaplan of Prometheum predicts a victory for the SEC based on the similarities between this case and the LBRY vs SEC case. However, the Ripple community and Attorney John Deaton question Kaplan’s knowledge of the Ripple case and label the SEC’s arguments as erroneous. The final ruling in this lawsuit will have a significant impact on the XRP price, and market participants eagerly await the outcome.
