The SEC Will Drop All Charges Against Ripple (XRP) According to This VC
TL;DR
Yassin Mobarak, founder of a Crypto VC firm, suggests the SEC might withdraw its case against Ripple to avoid negative exposure.
He believes the regulator uses litigation to maintain uncertainty in the crypto sector.
The Ripple vs. SEC legal dispute began in December 2020, with Ripple’s recent win when an appeal request by the SEC was dismissed.
Could SEC Wave the White Flag?
Yassin Mobarak – founder of the private equity firm focused on startups in the tech sector Dizer Capital – believes that the United States Securities and Exchange Commission (SEC) could withdraw all accusations against Ripple and its CEO Brad Garlinghouse.
According to him, it is not in the regulator’s interest to have a trial where “their corruption can be exposed.” Mobarak further claimed that XRP has solidified clarity in the crypto market, which could put the SEC’s agenda at risk.
“They will now move to end this case as soon as possible so that they can appeal to the 2nd circuit and continue to sustain this cloud of uncertainty on the whole industry. Litigation, by itself, regardless of the outcome, is the weapon,” he concluded.
Most X users who commented below the post doubted that such a scenario is in the cards given the SEC’s determination in previous cases. Some predicted that the Commission will not call it quits in favor of Ripple but try to delay the conclusion as long as possible.
A Brief Recap on the Ripple v. SEC Saga
The lawsuit between the two entities has been going on for over three years after the agency sued Ripple in December 2020 for allegedly trading billions of dollars worth of XRP as a security without registering with the Commission.
The legal battle passed through multiple heated moments afterward until it peaked in July this year. Back then, a US court ruled that most of Ripple’s XRP sales did not constitute an offer of investment contracts. The SEC was unpleased with the decision and formally appealed it last month.
However, Judge Torres recently dismissed that request, granting Ripple another landmark victory against its big enemy. She also set April 23, 2024, as a trial date.
The post The SEC Will Drop All Charges Against Ripple (XRP) According to This VC appeared first on CryptoPotato.
Filed under: Bitcoin - @ October 6, 2023 10:24 am