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The Ripple vs. SEC case has been going on for a couple of years; both parties have done the required and are awaiting results. Either outcome will greatly affect the crypto industry and hence there’s so much buzz surrounding it. Founder of CryptoLaw media, John Deaton, believes that not only can Ripple win, but GBTC also has a decent chance to win against the SEC.
SEC vs. Ripple & SEC vs. GBTC
Ripple was accused of selling unregistered securities in the form of their token XRP in December 2020, where the SEC wants that XRP to be termed as a security, while Ripple is opposing that. Although the financial watchdog had failed to prove their point and this had caused people to believe that Ripple could win the case.
Grayscale holds the world’s biggest public bitcoin trust, and they want to become providers of the Bitcoin ETF. They have applied many times with SEC but were denied every time, so they are forced to offer more than a 45% discount.
Deaton’s views
Grayscale
John Deaton has been positive about Ripple’s win; this time, he argued whether the case should be moved to the US Supreme Court. He also believes Grayscale could win and be converted to GBTC ETF. Adding that, the people in the DC circuit were impressed with the Grayscale’s brief on the matter.
With that in view, Deaton feels there is a chance for Grayscale to win the battle. There are 50/50 chances in the DC circuit, and if the case is moved to the supreme court, the winning percentage would be 75-80%. He believes that the denial by the authorities for Grayscale to launch their spot BTC ETF at the time when the regulators have allowed BTC futures and short ETFs is “arbitrary and capricious.”
Ripple
Per John, there is no doubt that the ruling will favor Ripple, further hinting that Ripple might take the case to the US Supreme Court, where the decision would be in favor. Saying that:
“I have zero doubt that the current makeup of the U.S. Supreme Court will rule in favor of Ripple if it goes that far.”
At the moment, the Ripple vs. SEC case is under the US District Court, Southern District of New York (SDNY)
Possible Implication
Although there are expectations for a positive outcome, such a ruling would help the market, as the market is in dire need of good news. Ripple winning the case would establish them, and people will again trust them as they win the fight against SEC. If accepted, Grayscale’s request will open the world’s biggest Bitcoin trust to the public, increasing mass adoption.
If SEC wins both cases, XRP will be termed as securities, and all the corresponding tokens would also have to be treated as such, shaking the whole industry. On the other hand, Grayscale will lose the only bet it has to stay alive in the industry.
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.
