Ripple lawsuit makes XRP the most important altcoin, says lawyer
“Considering Congress is not going to provide regulatory clarity […] the ruling by Judge Torres in the SDNY will decide whether the SEC has jurisdiction over the existing altcoins that have traded for years.”
FastMed founder Jason Williams, also known as Parabolic Guy, triggered a discussion on Twitter over the role of XRP in the digital asset space.
The entrepreneur is also a Bitcoin investor with multiple investment exits in excess of $500 million and is a founding partner of Morgan Creek Digital Assets.
The Bitcoin maximalist asked “Why is XRP important”. Among the many comments was XRP Holders’ attorney John Deaton’s, who pointed the SEC v. Ripple case as a make or break for the crypto asset industry.
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Court will decide whether the SEC has jurisdiction over existing altcoins
“The SEC’s argument regarding XRP makes XRP by far the most important altcoin in crypto. The SEC is alleging that today’s XRP – the token itself – is a security, including secondary market sales – independent of Ripple”, he wrote.
“Considering Congress is not going to provide regulatory clarity (especially in an election year on the heels of the [Supreme Court] overturning Roe), the ruling by Judge Torres in the SDNY will decide whether the SEC has jurisdiction over the existing altcoins that have traded for years.
“The SEC IS NOT only alleging the way Ripple offers and sales XRP is illegal but that ALL XRP are unregistered securities. It’s the functional equivalent of claiming the oranges or groves in Howey were securities. If successful, then almost every other altcoin is a security”, he added.
Since the beginning of the Ripple lawsuit, experts within the digital asset space have warned this case is different as it will be precedent-setting and will determine how the SEC’s enforcement actions will play out in the future.
Check out our daily coverage of Ripple and XRP!
The Securities and Exchange Commission has filed complaints against more than 75 crypto firms in the past already, but if the court plays into the SEC’s hands and deems XRP a security, then the regulator is widely expected to pursue its vision across the space.
The result is likely to be lawsuits en masse against the whole industry for marketing and selling unregistered securities as well as for exchanges listing unregistered securities.
The upcoming ruling on William Hinman’s 2018 speech notes and emails may well determine the outcome of the XRP lawuit. Since the parties and the court will be dealing with expert testimony-related motions next week, the Judge could issue its ruling on the Hinman’s notes today.
What if XRP is deemed a security?
This question has been asked many times by the thousands of XRP holders who await a conclusion to the SEC v. Ripple lawsuit, but no answer has been able to satisfy the inquiring minds.
The outcome of the Veritaseum case could provide guidance to XRP holders looking for answers about what will happen to their assets.
“Most likely, the status quo would remain in effect during an appeal. A buyback could be arranged for those in the U.S. I know the SEC offered a buyback of the Veri token but I do not know the specifics”, said XRP Holders’ attorney John Deaton, referencing the Veritaseum case. “My understanding is the SEC seized 98% of the Veri tokens. The SEC created a fund from the money it seized and offered Veri holders a buyback if they sold the tokens back to the SEC at a set price”.
