Amid the bearish movements of the majority of the cryptocurrency market assets, the closure of the high-profile legal battle between the United States Securities and Exchange Commission (SEC) and blockchain company Ripple could be in sight.
Indeed, the speculations mount that the opposing parties would settle the case in which the SEC is accusing Ripple of illegally selling the XRP token, which the regulator considers a security, and the settlement will likely define which cryptocurrencies are viewed as securities under U.S. laws.
Catastrophic implications?
As the market awaits the ruling of the presiding judge, Cardano (ADA) founder Charles Hoskinson believes that the outcome of the judgment in the Ripple case could have ‘catastrophic’ consequences for the general crypto sector after he was criticized for his stance on the issue.
Hoskinson made these comments after the unconfirmed reports that the final judgment might be ready by December 15 as both Ripple and the SEC have made their final submissions and amici briefs on the matter.
Ripple’s legal position
On December 7, Ripple’s general counsel Stuart Alderoty stated that:
Furthermore, he asserted that “Ripple does not depend on a conclusion that XRP was purchased for use – though such a conclusion, as shown by amici briefs and the non-speculative evidence, would defeat the SEC’s claims.”
Alderoty continued by reiterating the defense’s actual arguments:
“a/ There is no contract for an investment between Ripple and any XRP holder; b/ the SEC cannot satisfy a single prong of the Howey test and Ripple concedes not a single prong; c/ the SEC’s reliance on garden-variety ICO cases have no application here.”
As he concluded, “the reason the SEC and detractors try to recast our arguments is they have no answer for the arguments we actually make.”
XRP price analysis
At press time, the XRP token is trading at the price of $0.3762, which represents a decline of 2.56% over the previous 24 hours and 4.11% across the week, despite a 1.48% gain on the monthly chart.
With a market capitalization of $18.96 billion, XRP is currently assuming the seventh place among the top 100 cryptocurrencies by this indicator, as per CoinMarketCap data retrieved by Finbold on December 12.
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