Ripple vs SEC: Settlement would be a blow to Web3

The rumor is that the legal battle between Ripple and the SEC is close to a decision.

The rumor is that the legal battle between Ripple and the SEC is close to a decision. A settlement would be a defeat, says the American politician Walker.

The American politician January Walker calls a possible upcoming settlement between Ripple and the SEC a "loss for the whole world and Web3".

"The world watches the actions of the U.S., and how the government handles one of us sets a precedent for how they treat all of us," said View post on X.

A settlement would, according to the former congressional candidate, "set the precedent that Web3 won't have the guts to stand up to bad practices by our government". The main thing the sector needs, she said, is "clarity on regulation".

On the hot issue of whether the XRP cryptocurrency issued by Ripple should be regulated as a security or a commodity, Walker called for "a separate classification".

"I've always said that cryptocurrencies should neither be securities nor commodities, and that we should create an entirely new class instead of trying to fit cryptocurrencies into existing frameworks."

According to unconfirmed rumors, a decision will be made this week in the Ripple vs. Securities and Exchange Commission lawsuit. Cardano founder Charles Hoskinson addressed the speculation in an AMA, but later called it a rumor.

The SEC chief is clearly not a crypto fan and wants to crack down on cryptocurrencies.