The US Securities and Exchange Commission is about to sue Ripple for allegedly selling XRP as an unregistered security.
The case is still causing a stir within the crypto community – and now various executives have commented on the situation.
Does the case have any impact on the entire industry?
IOHK CEO Charles Hoskinson believes the impending lawsuit could have repercussions for the entire crypto industry. Hoskinson in a video :
„The reason this is a big deal for the industry as a whole is that it can have a profound impact on how the SEC sees in the future whether something is a security or not …“
According to Hoskinson, this may shift the burden of due diligence onto the exchanges. As a result, the crypto exchanges could become more cautious when it comes to listing new tokens or evaluating existing portfolios more carefully. Hoskinson:
“So it is by no means a small event. This is probably the biggest regulatory event in our industry’s history. It will have a lot of impact on the future. „
Hoskinson is not the only one who is critical of the incident. Messari CEO Ryan Selkis, long-time critic of Ripple and Ripple’s XRP, suddenly takes Ripple’s side.
Selkis believes the case could make it clear that the SEC’s Howey test is severely out of date in the digital age. Howey’s test is used to determine whether an asset is a security.
“The SEC restrictions on unaccredited investors, the ridiculous Howey Test, and 80 year old securities laws like the ’40 Act ‚are all bound to die in the fire. They are un-American and completely out of date. I hope Ripple wins … “
Selkis believes that it is up to industry to control itself and have the moral upper hand. It is important that Ripple wins the case – for the benefit of other projects and companies in this area.
“We’re ‚in here together‘ to draw a line on the regulatory demarcation. XRP as a ’security‘ continues to hurt US companies, while global competitors will continue to do these markets. „
Ripple’s XRP as a security would also mean that other assets will suffer the same fate. Selkis:
„At least Ripple has money to fight … [the SEC] could force a settlement, but they are legally inferior. Recall that Ripple sued former SEC chairwoman Mary Jo White in 2018 on a civil matter. A reference to your money. “
Selkis is convinced that Ripple can win this case.