- Crypto influencer David Gokhshtein tweeted that the SEC vs. Ripple case may be solved by December 15.
- David based his assumptions on Hoskinson’s YouTube show.
- Charles later confirmed that he, too, had heard rumors from grapevines.
Cardano founder and Input Output CEO Charles Hoskinson fired cryptocurrency influencer David Gokhshtein in a recent tweet where he accused him of spreading “fake news” regarding the ongoing SEC vs Ripple case.
Gokhshtein tweeted earlier that the high-profile case would end by December 15. He based his speculation on what Hoskinson said in a recent YouTube session; ‘ask me anything.’
As per media reports, Hoskinson got the wind that the case might reach its conclusion on December 15. Input Output CEO also warned that the outcome of this two-year legal battle might have “catastrophic” emanation on the whole crypto industry.
In his reply to David, Hoskinson stressed that his statement was just a rumor he had heard from someone else.
Meaning that the case may or may not end on December 15, as speculated.
David later pointed out the dictionary definition of the word ‘apparently’ signaling that he hedged his tweet. Gokhshtein later praised the Input Output CEO, claiming that the founder of Cardano is “a great ambassador” for the industry.
Both the parties involved in the case, viz Ripple and SEC, filed all the required documents in early December, and the case is expected to drag on for a few more months. It’s already been nearly 24 months since the case began; another 3-4 months won’t make a difference right? However, Brad Garlinghouse, CEO of Ripple, expects that case should wind up in the first half of 2023.
SEC vs. Ripple: What’s the case?
SEC sued Ripple in December 2020 for conducting securities offerings worth $1.3 billion. The company is accused of violating Sec 5(a) & 5(c) and the securities act of 1933.
From 2013 to 2020, Ripple Labs sold XRP tokens and raised $1.3 billion. XRP was trading on more than 200 exchanges worldwide at the time.
In the event the SEC wins the case, XRP, from 2022 onwards, will be treated as a security rather than a currency in the United States. This might set off a domino effect that shall result in the recategorization of similar cryptocurrencies as securities.
Theoretically, security is a financial instrument or a certificate with a monetary value that can be traded. They are generally classified as either equity securities, such as debt or stock securities, or bonds and debenture securities.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.