The realm of cryptocurrency is rife with debate, but no discussion is as heated or as complex as the ongoing legal tussle between Ripple Labs, creators of the XRP token, and the U.S. Securities and Exchange Commission (SEC). Recent insights from two notable figures, John Deaton, a lawyer known for his support of XRP, and Crypto Law US Founder, and Bill Morgan, a lawyer with a keen interest in digital assets, shed new light on this multifaceted drama.
Ripple’s Ownership Dilemma
John Deaton’s tweet poses an intriguing alternative to the current face-off: if the crux of the SEC’s contention was Ripple’s substantial stake in XRP, why not establish a maximum limit for ownership? Ripple could then be given a window of 3-5 years to trim its holdings to fit within this boundary. Ripple has already been reducing its XRP holdings, although for a different reason – to foot a hefty $200 million legal bill in its standoff with the SEC.
The Ripples of Blame and the Future of American Crypto
Deaton goes on to echo the criticisms of Congressman Warren Davidson regarding the roles of former SEC Chairman Jay Clayton and Director of Corporate Finance William Hinman in shaping the current state of cryptocurrency regulation in America. Deaton hints at the possible frustrations of SEC Commissioner Hester Peirce, a known crypto advocate. Despite having a majority with Commissioner Elad Roisman during Clayton’s tenure, their pro-crypto views were often marginalized.
Also Read – Ripple Vs SEC: Why XRP Secondary Market Trading is a Key Aspect
The Ripple Balancing Act: Safeguarding XRP’s Value
Bill Morgan’s tweet adds a twist to the saga, highlighting the irony of Ripple’s efforts to stabilize XRP’s price. Ripple’s measures to support XRP’s value have been interpreted by the SEC as evidence of a common enterprise, one of the criteria for determining security. Morgan underscores Ripple’s tightrope walk: while reducing its XRP holdings could address SEC’s concerns, it might also wreak havoc on the token’s price, hurting XRP holders – a scenario Ripple strives to prevent.
An Uncertain Horizon
As this riveting legal saga continues, it’s hoped that it will pave the way for a regulatory framework that encourages innovation and safeguards investors. The future of XRP and numerous other cryptocurrencies is in limbo, and we can only wait with bated breath to see which way the winds will blow.
