Crypto Community May Face Storm if SEC Triumphs in XRP Lawsuit, Expert Suggests

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In a crucial legal battle, Ripple’s victory against the United States Securities and Exchange Commission (SEC) has been hailed as a significant triumph not only for the cryptocurrency firm but for the broader crypto community. The court’s ruling that XRP sales on crypto exchanges did not constitute securities sales has potentially deflected a much graver scenario, had the SEC emerged victorious.

An Averted Onslaught by the ‘Anti-Crypto Army’

John E. Deaton, a legal expert, speculated on the implications if the SEC had won the case. He foresaw the unleashing of an “anti-crypto army,” led by SEC Chief Gary Gensler and Democrat Senator Elizabeth Warren, known for her stringent stance on crypto issues. He speculated that these stringent regulatory forces would have been “out in full force,” marking a starkly different outcome for the crypto industry.

The Ripple Effect of SEC’s Defeat

Deaton further argued that had Judge Analisa Torres ruled XRP as a security, Democrats favoring crypto would likely have remained silent. Reiterating his previous statement, Deaton asserted that referring to the Ripple XRP case as the “most significant non-fraud SEC enforcement action in modern history” was not an exaggeration.

According to Deaton, Torres’ ruling was not just a victory for crypto holders and developers in the US; it also delivered a significant setback to the SEC’s ambition to control an entire asset class. The legal expert insists this decision signifies that the finance watchdog must reconsider its approach towards crypto regulation.

XRP Market Reactions and the Ripple Win Hype

Following the legal win, XRP, the digital asset at the heart of this case experienced some fluctuations in value. At the time of reporting, XRP was trading at $0.70, down 1.21% in the past 24 hours and 2.02% over the last week. The initial hype around Ripple’s victory appears to be cooling down. However, it’s worth noting that XRP is still trading nearly 50% higher than it was a month ago, indicating continued optimism in the market despite the recent decline.