Ripple’a Security lawsuit, Xrp investor His hands are tied. Ripple alleges that you are selling securities, ie XRP at regular intervals, since 2013, brought to court last week. The fact that the SEC, one of the world’s most prestigious regulators, is up against the blockchain giant makes the situation difficult.
Ripple and XRP taken briefly
The SEC accuses the CEO and founder of both Ripple and Ripple of $ 1.2 billion. if Wave this big case If it loses and XRP is declared a security, it may not be possible to trade XRP from exchanges, or the value of XRP may fall to levels never seen before.
Brad Garlinghouse, CEO of Ripple, said in a statement on the subject that Ripple was involved in a long war and nothing is certain until the war is over. One of the renowned law professors of USA explained his comments on the case and explained how it might result.
XRP and Ripple Interpretation from Professor of Law
Carroll Goforth, a professor at the University of Arkansas Law School, gave sad news to Ripple investors in his current statement. Goforth feels that Ripple’s hand is quite weak here. Goforth drew attention to an exemplary case, stating that the case statement prepared by the SEC has a very detailed and clear structure.
In 1946 Supreme Court’s decision Noting, Goforth said that according to the Howe test, XRP may fit the definition of securities. According to the professor, most XRP purchasers can understand that they have purchased a property that conforms to the security definition specified in the Howe trial case decision.
For example, the case does not give hope
Among the assets under consideration, according to the Howe test may be considered securities, the expression “investment in a joint institution with cash or monetary value with the hope of making a profit from the efforts of others or others” has the expression .
Ripple has earned $ 1.38 billion from XRP sales to date, and at the moment it seems pretty clear that Ripple is gaining value over the XRP it sells. Furthermore, it is known that investors do not have any restrictions on XRP that they can buy. The fact that the wealth of all investors decreases and increases simultaneously with the XRP value increases the likelihood of security.
Ripple’s hand is very weak at this point, and according to Professor Goforth, the price of XRP may be affected.