Ripple: first hearing in February in case against SEC
The first hearing of the SEC’s case against Ripple will not take place until 22 February 2021 in the Southern District Court of New York, with Judge Analisa Torres presiding.
Ripple claims that the SEC complaint is an attack on the entire cryptocurrency industry in the United States.
In reality, the question as to whether some cryptocurrencies, such as XRP, should be considered as security does not apply to all cryptocurrencies, as Bitcoin and Ethereum, for Bitcoin Code example, have repeatedly expressed opinions, including institutional opinions, against this association.
But, although some cryptocurrencies such as BTC and ETH are now commonly considered commodities even by the institutions themselves, other cryptocurrencies may in fact run risks similar to those that XRP is running.
It is no coincidence that some of these have lost value in recent days, albeit much less than XRP, precisely because of shared fears.
Ripple claims that there is a dangerous lack of regulatory clarity for the crypto sector in the United States, whereas in the UK, Japan, Switzerland and Singapore there are clear rules for the use of this cryptocurrency. It also states that the holders of XRP have no connection to the company itself.
This point should be reiterated: XRP is not the cryptocurrency of the Ripple company – or at least not anymore – so if it could be considered a utility token, and not a security token, its fate could theoretically be unrelated to that of the company.
„With this decision, the SEC has brought and put only more uncertainty into the marketplace, actively harming its community of consumers and investors, which it should actually be protecting in the first place. Unsurprisingly, various industry players are reacting conservatively and reflexively in the face of these facts, moving very cautiously about the future of the very industry in which we all operate.“
He refers in particular to the decisions of several exchanges to suspend XRP trading as a precautionary measure for US users.
Ripple-SEC case, hope in new governance
It also reiterates that it will ensure all its services are fully operational in the meantime, not least because most of its customers would not be in the US, just as most of the XRP trading volume would be traded outside the US.
One point that might be of interest is the change in the presidency of the government agency.
The company in this regard states:
„We look forward to working with the new leadership of the SEC once the new representatives are appointed. First, we note that recently the SEC chairman, six of its directors from each division of the SEC, the SEC’s chief economist and the SEC’s legal counsel have left (many left just last week) and our continued commitment to constructive regulatory engagement has not changed.“
These changes could also open up new scenarios specifically regarding the agency’s attitude towards the crypto world.