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XRP – the native digital token of crypto firm Ripple – experienced a sharp price hike in late March after several investors and fans felt they had reason to believe Ripple could potentially win its ongoing court case with the Securities and Exchange Commission (SEC).
Could Ripple Beat the SEC?
The SEC has made a habit out of attacking virtually every single digital currency company over the last six or seven years. The agency is going after every firm that took part in token offerings or provided interest or other rewards through token investments. The idea is that these tokens are securities, and thus the firms in question did not follow present SEC regulations when issuing said currencies to traders.
One of the companies that the SEC has been targeting hard over the past few years is Ripple. Many crypto investors pointed out a supplemental notice issued by Monica Long – the current president of Ripple – saying that she and her fellow executives are very hopeful that the SEC case will result in a win for the digital currency firm. She confirmed in the notice that the “facts and the law” were on the side of Ripple, and that she doesn’t believe the ruling judge will take the side of the SEC.
Following these comments, XRP – which at the time, was at around 45 cents – rose by a whopping 20 percent. Vijay Ayyar – vice president of international crypto exchange Luno – said in an interview:
Overall, crypto markets have rallied in the past week or so given the anticipation of a pause or slowdown in interest rates and the slowdown in inflation.
In a separate statement, Long commented on why she thinks Ripple has a strong chance of being victorious. She mentioned:
We’re seeing action through enforcement versus setting clear rules and regulation, which is what all of us in the industry desire. Europe is really emerging as a leader in setting really clear regulations and rules that allow crypto companies and also traditional finance to embrace crypto.
One of the more recent crypto firms to have been victimized by the SEC was trading platform Kraken, stationed in Northern California. The company was forced to part with a $30 million penalty fee and end all its staking services and activities.
Gary Gensler on Kraken
Regarding that scenario, SEC Chair Gary Gensler stated:
There’s a handful of tokens that have registered. The intermediaries, the storefronts if you wish, the casinos that people are investing in and investing at need to properly comply and disentangle these bundled products. If this field has any chance of survival and success, it’s time-tested rules and laws to protect the investing public.
Ripple should feel confident that the SEC is also slated to lose its case with Grayscale, a BTC trust.