Why is the Securities & Exchange Commission Really After XRP?
LOS ANGELES, United States – You might be wondering, “Why is the Securities and Exchange Commission targeting Ripple?” There are a lot of crypto coins out there that are not being hunted down by the SEC. Moreover, the XRP is one of the strong players in the market, so why would the SEC want to start with an opponent who can fight them? That is the question that we will try to answer.
Although there are no concrete facts that would answer this question head-on, there are notable factors as to why it is the case. Ripple has been in the top seven of the strongest cryptocurrencies in the crypto industry. Other big players are outside the United States, while Ripple is within the border. Thus, they are an easier target for the SEC since they are located in the same area. Although, in the past, the SEC chased down offshore companies such as Terra.
Another factor that you can note is the money that Ripple is making. Some believe that the SEC is after imposing large fines on Ripple since it thrives tremendously. Although this is just a wild theory, some believe that if the SEC can impose fines on Ripple and show that it has the upper hand in this game, it can go after other cryptocurrencies, especially the small ones. You might be looking at a power play in place here.
The third factor is that not only does the SEC want to fine or to have any involvement in the cryptocurrency industry, but also to have a hand in their projects as well. By going after Ripple, they can send signals to other cryptocurrencies without the SEC going after them.
A battle with the SEC is a power play, and an opponent needs to be strategic in terms of defending, which is what XRP is trying to do on their end.