Today, February 22, 2021 is the scheduled date for the preliminary hearing between Ripple and the US Securities and Exchange Commission (SEC).
The outcome of this case will undoubtedly have massive implications for the cryptocurrency industry, and may pave the way for how other cryptocurrencies are regulated in the USA and around the world.
At the moment, the Securities and Exchange Commission is suing Ripple for illegal sales of the XRP digital currency, as the Authority believes that the cryptocurrency XRP should be considered a safety and guarantee, thus putting Ripple and chief executives “Chris Larsen” and “Brad Garlinghouse” in violation of the laws. Money bills.
Yesterday we published an article about “Mary Jo White,” the former chair of the Securities and Exchange Commission, who recently stated that the agency she headed was completely wrong about Ripple.
Mary Jo White, the former chair of the Securities and Exchange Commission, is a lawyer for Ripple.
In an interview with “Fortune”, “Mary” expressed her thoughts on the issue of Ripple, and stated what it means:
The Commission made a mistake in suing Ripple as an unregistered security XRP.
The authority marks the sales of XRP as a violation of securities laws, but in fact XRP should be classified as collateral.
There is no way to color the issue.
They are wrong, both legally and realistically.
“Mary White” also indicated that the timing of the Securities and Exchange Commission’s lawsuit against Ripple came at a very ill-considered time and may be an indication that the complaint has no real substance.
The fact that the Securities and Exchange Commission had chosen to file a lawsuit against Ripple, when top SEC executives were leaving, has surprised many.
Coupled with the fact that the SEC has been investigating ripple for years, it has received a lot of criticism from the crypto community.
As a US attorney and former Chairman of the Securities and Exchange Commission, you know that when it takes a long time to learn about a case, you likely should not have to file it.
It’s not something I’ll do when I walk out the door.
Although “Mary White” proved to be one of the most well-known securities attorneys in the United States and worked as a former American attorney for the Southern District of New York, meaning the opinion and voice of “Mary White” is heard.
However, her statements also come against the background that she is a lawyer for Ripple, and what she declares and says is part of her mission to defend Ripple.
Settlement between Ripple and the SEC:
The Securities and Exchange Commission and Ripple Corporation revealed last week that a settlement is highly unlikely at this time, which means that both parties are not ready for support without their best fight.
SEC and Ripple will certainly need to do their best during the hearing with US District Judge Annalisa Torres.
With a strong legal team on the Ripple side, the SEC may need to step up its game and skip the “Howey” test to provide facts about why XRP is considered safe.
Mary White and several Ripple advocates argue that XRP is not a guarantee and is the same as Ethereum.
The case of Ripple and XRP:
Several attorneys discussed the issue of XRP and the SEC.
Recently, attorney Jeremy Hogan analyzed the joint letter that the Securities and Exchange Commission and Ripple submitted to a county judge in preparation for today’s pre-trial trial.
Hogan concluded that, compared to Ripple’s arguments on XRP, the SEC’s position was weak and lacking in factual substance.
It indicated that this was really a mistake on the part of the Committee, because first impressions were very important.
While many have sided with Ripple, others argue that the SEC was right, including Mr. Phil Liu, chief legal officer at Arca, who previously indicated that Ripple does not appear to have any steady revenue streams outside of selling the XRP coin.
Ripple’s impact on the crypto market:
It is not disputed by two that the company Ripple and the digital currency XRP have been around for a long time and XRP is one of the oldest and most famous cryptocurrencies by virtue of that it was ranked third for long periods of time.
Accordingly, any negative repercussions in the case towards Ripple would also negatively affect the currency’s price and perhaps the cryptocurrency market as a whole, as it means regulatory threats to many other projects such as Ripple.
As for if the issue is in favor of Ripple, the price of the XRP digital currency will also be affected, and it will rise, and it will also be a benefit for the crypto market as a whole, as it will be the first step towards clarity of the regulatory vision.