SEC filed a case against Ripple Labs, CEO Brad Garlinghouse, and his co-founder, Chris Larsen, in December 2020. SEC claims that Ripple sold $1.3 Billion cryptocurrencies in unpublicized securities of its XRP tokens. Ripple’s executives denied the allegation. The company argued that XRP has operated as a digital agency.
What is Ripple?
Ripple is an instant gross settlement system remittance network. It’s one of the world’s most adopted cryptocurrency exchanges. Its founders launched it in 2012.
XRP is a token tailored to work on the Ripple network. XRP’s purpose is to provide an intermediate mechanism of exchange. Its transactions are faster and cheaper than Bitcoin.
Ripple has been working nonstop to sign in new parties to its Ripple network. It markets other products that make use of XRP for cross-border payments called On-Demand Liquidity.
Brad Dougan, the ex-CEO of Credit Suisse, declared that regulation is a significant factor of crypto, anticipating it to grow over time. It’s a market that is in its prior stages of development.
Regulators around the world are taking a closer look at crypto. It’s a huge market that’s unregulated but has exploded in the last year.
In the current market, XRP is trending in a good direction. The average prediction is a price above $3, which will be tremendous growth if it becomes a reality.
Could Ripple win the SEC case?
Crypto enthusiasts are keenly waiting for updates on the SEC vs Ripple case. Experts say Ripple will win the SEC case, which might propel XRP. A defeat to the SEC will mean a big revolution in the cryptocurrency fraternity.
Ripple claims that it’s seeing “good progress” in this legal tussle. Garlinghouse told CNBC that the judge is asking good questions. He believes the judge has realized that it’s not only about Ripple, but will have bigger implications.
Garlinghouse is hopeful that the case will come to a close next year. If Ripple wins, the XRP price will most likely boom in the market.
Why do people love Ripple?
XRP has very low transaction fees. The cost to complete a transaction is 0.0001 XRP. Additionally, Ripple has a versatile transaction network—it is used for other currencies and commodities.