XRP: What to Expect from Ripple v. SEC Thursday Developments
The Ripple XRP investors and the wider cryptocurrency market continue to monitor the news about the ruling on the lawsuit the United States Securities and Exchange Commission filed against Ripple. Since the last development on the case, XRP price started bordering the $1 mark, and a ruling is all it will take to see whether the digital token will make it or break it.
The SEC has started going after cryptocurrency companies in the past years, most notably Ripple. The commission aims to ensure that these companies do not offer tokens or insider information before the companies legally can.
In the case of XRP, the SEC sued the company stating numerous reasons. First, the SEC claims that the XRP is not a currency. Instead, it should be classified as a security. This places the digital token under securities laws like any other publicly-traded company. This argument comes from Ripple Labs generating and selling the token instead of being backed by financial institutions that adopt the currency.
The other reason is that the SEC alleges that Ripple Sold the XRP tokens as an unregistered security. The commission alleges that the company sold 14.6 billion XRP units for more than $1.38 billion to fund the company and themselves.
On the other hand, Ripple executives insist that XRP is indeed a digital asset, like every other crypto token in the market. Therefore, it should not be considered a security. Moreover, the Ripple counsel is confident that the documents set to be unsealed on February 17 will reveal the flaws in the SEC’s case.
Regardless, the token is currently showing signs of recovery and price predictions for the cryptocurrency are optimistic. Add that to the growing payment ecosystem Ripple is building, and more and more investors will likely support XRP, especially if they win against the SEC.