Cryptocurrency enthusiasts are patiently waiting for a win, as 2022 has been particularly cruel to the industry. Locked in a crypto winter with investor confidence collapsing, something needs to right the ship. Vibe (USD-XRP) could do just that. The company behind the XRP crypto is Finally seeing the end of his court battle with the Securities and Exchange Commission (SEC). The crypto market could get a catalyst if Ripple can pull off a win.
It has been a long road for Ripple. The SEC opened its complaint against the company in December 2020. Since then, Ripple has been diverting resources from its business to fight the allegations. The accusations revolve around whether XRP is a security; if the court rules so, it would mean that Ripple has illegally sold securitiesin accordance with established US law.
Heavy punishment awaits the company if it loses in court. And, in the midst of a wildly bear market, the financial hit to Ripple would be greatly amplified. Fortunately for her though, the SEC has been less successful in making this an open and shut case than she thought it would be.
Ripple has been able to exploit the SEC’s disjointed public opinion on what qualifies a crypto as a security versus a currency. The main evidence used by Ripple is the “hinman papers”: Internal SEC communications related to a speech by former director William Hinman. In 2018, Hinman gave a speech in which he refuted the idea. Ethereal (ETH-USD) was a security and implied that most cryptocurrencies on the market are also not securities.
Using these documents, Ripple attempts to prove that the SEC communicated internally in a way that cleared Ripple of the allegations in the lawsuit.
XRP crypto demand will come to an end in early 2023
After the nearly two-year battle, the XRP crypto demand is finally coming to an end. The two parties are ready for the final judgment and the result will undoubtedly have a far-reaching effect on the market.
It’s been just over a month since Ripple’s big win in filing the Hinman documents in the courtroom. With that evidence secured, Ripple is now filing a final request for summary judgment. Ripple’s general counsel has confirmed on Twitter that this is the last filing Ripple will make. Now things are in the hands of Judge Analisa Torres. The summary trial for the case, according to former prosecutor James Filan, will be occur “on or before March 31, 2023.”
Filan’s date is simply a prediction at the end of the day. But, as a former expert who has been through these processes countless times before, it’s perhaps the best guess investors will find. Still, just knowing that both sides are done with filings offers more proof that the end is near than any previous speculation.
This ruling has big consequences for the crypto market either way. If the SEC wins, the ruling will reiterate a precedent set by its success last month. In November, the commission won a court case against LBRY (USD-LBC) which closely mirrored the argument he makes in the Ripple lawsuit. A victory over Ripple will give the body even greater regulatory power over the crypto market.
However, Ripple seems to have all the momentum. He could save most of the SEC market with his own victory. Such a high-profile case will definitely be considered in regulatory laws in the future. If XRP can prove that it is a crypto rather than a security, I would suggest that most other cryptos are as well. This would effectively remove most of the SEC’s crypto regulatory power.
As of the date of publication, Brenden Rearick did not (either directly or indirectly) hold any position in the securities mentioned in this article. Opinions expressed in this article are those of the author, subject to InvestorPlace.com Posting Guidelines.