This case could shape the future of the crypto industry
Ripple has been fighting the SEC since 2020. A ruling is expected soon.
Ripple has been up against the SEC since 2020. A ruling is coming soon. It could give XRP a boost — or wreck the crypto industry.
For more than two years, Ripple and the U.S. securities regulator, the SEC, have been fighting before the U.S. Supreme Court. The world is watching closely. The outcome could be groundbreaking for the entire American industry. In December 2022, both sides filed their briefs. Now a judge’s ruling is expected. Some expect it in the first half of this year, in April or June.
If the SEC wins, Ripple could be hit first—and then all the so-called altcoins, more than 4,000 of them now. The regulator accuses Ripple of claiming XRP is a security. The company would have needed to register with the SEC. The sale—worth $1.4 billion—would then be illegal.
Ripple fights back against the allegations
The SEC filed lawsuits against other crypto firms like Binance and Uniswap in 2022, with the same allegation. In a recent New York interview, SEC head Gary Gensler reiterated: "Everything except Bitcoin is a security." If his view prevails, the sector in the US will face tough times.
Ripple pushes back against that assessment and accuses the SEC of "shameful conduct" and "abuse of power".
Ripple’s lawyer, Stuart Alderoty, has lately been very confident of a win: the SEC has only won one of five cases before the Supreme Court in its history. And Ripple already scored a major partial victory last year.
The SEC had to hand over some key previously sealed documents to Ripple, the so-called "Hinman files". William Hinman was the SEC director in 2018. He said in a speech that Ethereum is sufficiently decentralized to not be a security. Ripple argues a similar stance. So far, the documents can’t be made public. But Ripple CEO Brad Garlinghouse says: "When the truth comes out, you’ll be shocked at how embarrassing their conduct in this case is."
If Ripple wins, the entire US crypto industry should breathe a sigh of relief. Analysts speculate XRP could surge to more than $1. So far, the company has been able to do only limited business because of the ongoing lawsuit. "We’d have an incredible business opportunity in the US," the attorney said in an interview.
