Bullet Points:
• The United States SEC is increasing focus on cryptocurrency projects displaying ‚predatory‘ tokenomics, with Ripple Labs at the top helm.
• Analysts speculate that XRP could lose approximately 25 percent of its utility should Judge Torres deem it a security.
• Ripple Lab’s CEO Brad Garlinghouse previously indicated that the company would relocate to a crypto-friendlier nation should it lose the ongoing lawsuit.
The United States Securities and Exchange Commission (SEC) is taking a hard stance on cryptocurrency projects that display ‚predatory‘ tokenomics, with Ripple Labs at the top of their list. With the recent FTX implosion, analysts have been speculating on what the future of XRP could look like if Judge Torres were to deem it an unregistered security.
Jeremy Hogan, partner at Hogan & Hogan, attempted to provide a rough estimate of how much utility XRP could lose should Judge Torres decide that Ripple has sold unregistered securities. He suggested that XRP could lose approximately 25 percent of its utility, as the United States accounts for 25 percent of the world’s economic activity.
Ripple Lab’s CEO Brad Garlinghouse had previously indicated that the company would relocate to a crypto-friendlier nation should it lose the ongoing lawsuit. However, this would not be an ideal situation for Ripple as the United States is the holder of the global reserve currency. As such, the 25 percent loss of utility could be exacerbated by the United States coaxing its ally nations to take similar control of the XRP market.
The stakes in the Ripple vs SEC case have risen exponentially since Gary Gensler suggested that the SEC should be given the authority to regulate crypto exchanges. This could have an even more damaging impact on XRP and possibly the entire crypto market.
At this time, it is still too early to tell what the outcome of the Ripple vs SEC case will be. Nonetheless, it is important for investors to remain cautious and keep an eye on the latest developments in the case.
