Ripple’s fate will be decided this week in its fight against the United States Securities and Exchange Commission. For years, the company has been fighting against a possible classification of XRP as a security. An important deadline expires on November 30.
Until then, the two brawlers have time to present the final written documents to the court. Observers assume that the deadline for an “amicable” agreement will expire on that day. After that, the court will issue a decision, but its content is still open.
Excited expectation
Since December 2020, almost two years, Ripple and the SEC have been fighting for a directional decision. If XRP is indeed classified as a security, as the exchange regulator would like, it could have serious consequences for Ripple and the entire crypto world.
Ripple has already been forced to freeze its operations in the United States, but a judgment against XRP could cause serious problems for the company. After all, the timing of bad news is far from ideal.
bad timing
The prevailing crypto winter has depressed prices. The bankruptcy of FTX should lead to even stricter legal requirements than those already foreseen. High inflation and the impending economic crisis are depressing sentiment towards volatile assets.
If XRP is now also classified as a security and Ripple is fined, that is the last thing the industry needs right now. Such a judgment would not only touch Ripple to the heart, but would likely result in further lawsuits.
Is the SEC seizing the moment?
After all, the SEC could use a ruling in its favor to “clean up” and put a massive damper on the “pesky” crypto industry. But at court and at sea, you are in God’s hands, says an old proverb.
Despite all the positive assessments of Ripple regarding the outcome of the proceedings, no one can be sure of the judges’ decision. Therefore, November 30 could be a turning point.
Until then, the two parties to the dispute could agree on a settlement. It would be beneficial for both parties. SEC could avoid defeat, Ripple could prevent XRP from being classified as a security.
Broken laces
From today’s perspective, however, the benefits of a comparison lie more with the SEC. She certainly wants to avoid her internal discussions (eg Hinman’s speech) becoming public and giving the impression that the SEC acts differently in similar cases.
Ripple, on the other hand, would only benefit from a comparison if the company could once again operate freely in the US market. It is unclear whether comparison talks are already taking place in the background or not. But November 30 could bring a preliminary decision on whether or not Ripple is taking all the risk.
If the two brawlers do not settle out of court, observers expect a verdict in the first half of 2023. If a decision is made in favor of Ripple, XRP will undoubtedly make a comeback. In the event of a ruling in favor of the SEC, the crypto winter threatens to go into overtime.
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