The ongoing legal dispute between Ripple Labs, creators of the XRP token, and the US Securities and Exchange Commission (SEC) is one of the most complex and heated debates in the realm of cryptocurrency. Recently, two prominent figures – John Deaton, a lawyer who supports XRP, and Crypto Law US Founder, and Bill Morgan, a lawyer with a keen interest in digital assets – have provided new insights into the matter.
Ripple’s Ownership Dilemma
John Deaton recently tweeted out a possible solution to the conflict between Ripple and the SEC: if the SEC’s argument is based on Ripple’s large ownership of XRP, why not set a maximum limit for ownership? Ripple could then have a 3-5 year window to reduce its holdings and comply with the boundary. Ripple has already been lowering its XRP holdings, but for a different purpose – to pay its legal fees of $200 million in its fight against the SEC.
The Ripples of Blame and the Future of American Crypto
Deaton also echoed the criticisms of Congressman Warren Davidson regarding the roles of former SEC Chairman Jay Clayton and Director of Corporate Finance William Hinman in the current state of cryptocurrency regulation in the US. He also hinted at the possible frustrations of SEC Commissioner Hester Peirce – a known crypto supporter – who had a majority with Commissioner Elad Roisman during Clayton’s term, yet their pro-crypto views were often ignored.
The Ripple Balancing Act: Safeguarding XRP’s Value
Bill Morgan’s tweet brings a new perspective to the situation, focusing on the irony of Ripple’s efforts to protect the price of its XRP token. The SEC views Ripple’s efforts to support the value of XRP as proof of a common enterprise, which is one of the criteria for determining security. Morgan points out Ripple’s balancing act: while reducing its XRP holdings could appease the SEC, it could also have a negative effect on the token’s price and hurt XRP holders – an outcome Ripple is trying to avoid.
An Uncertain Horizon
As this captivating legal battle continues, it is hoped that it will lead to a regulatory framework that encourages innovation and safeguards investors. The fate of XRP and many other cryptocurrencies is uncertain, and we must wait and see which way the wind will blow.
