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- SEC vs. Ripple’s outcome might come in the first half of 2023.
- Hoskinson previously said that the result might come on December 15.
- This high-stakes case has the potential to shake the whole crypto industry.
Charles Hoskinson said on Youtube that he had heard some information from grapevines that the results of the SEC vs. Ripple shall be out by December 15, 2022. And that the outcome will have a disastrous effect. Although it didn’t happen, he has admitted that he will end up with an egg on his face if there is no settlement in the lawsuit.
After his statements during ask me anything on YouTube, David Gokhshtein tweeted about the date announcement. Which created some ripples in the market, pun intended.
The Cardano founder initially slammed Gokhshtein for spreading fake news but later admitted that he had heard rumors from an unknown source.
Both the involved parties in this highly sought-after case, namely Securities and Exchange Commission (SEC) and Ripple, have submitted all the required documents and are awaiting results. According to Ripple CEO Brad Garlinghouse, it might take another 3 to 4 months. The case, which has been running since December 12, 2020, might stretch out until the first half of 2023.
The crux of SEC vs. Ripple
SEC had sued Ripple for conducting $1.3 billion securities offerings in December 2020. And accused them of violating Sections 5(a) and 5(c) of the securities act 1933. From 2013 to 2020, Ripple Labs sold XRP, which generated the company’s $1.3 billion worth of capital.
The whole dispute is whether to consider XRP as an “investment contract” and thus a Security under the Securities act or not.
The SEC has been granted regulatory authority over the category of “investment contract.”
Three Scenarios
If Ripple wins and the Court establishes that XRP is not a security, the violation of the sale of unregistered securities is deemed null and void. But it will also be the first and a significant defeat for SEC, especially for its fight against the ill in cryptocurrency.
If the SEC wins, it will be one more victory for the regulators, and XRP shall be listed as a security. But all the coins that fall under similar categories might also be put under the scanner. This could be a piece of bad news for the crypto industry and the market.
The Court can also opt for the third option and deny both motions. The result will then be litigated at a trial on a merits basis.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
