Securities status of XRP has taken a whole new turn following the release of the Hinman documents
The popular Ripple vs SEC lawsuit in the highly volatile cryptocurrency market has always been the center of attraction. Crypto investors are highly eager to know the final verdict of the Ripple vs SEC lawsuit regarding the unregistered security claim of XRP. Especially because XRP was one of the hottest crypto investments before the 2022 market crash when it lost over 70% of its value. The SEC has accused Ripple of selling XRP in an unregistered security offering. The outcome of the U.S. regulator’s court case against Ripple will have far-reaching consequences for the cryptocurrency industry.
The controversy over the securities status of XRP has taken a whole new turn following the release of the Hinman Documents, as ordered by the courts. Since the documents went live, crypto industry experts have pored over every page. Of the discoveries made, one major conclusion was imprinted in the fine lines of the text, according to the comments. Defendant’s primary argument hinges on statutory interpretation — that XRP is not an “investment contract” (but is instead a digital currency or commodity) and is therefore not a “security” subject to the Securities Act, including the registration requirements of Section 5.
XRP was charged in 2020 by the Securities and Exchange Commission (SEC) for failing to register its security features, which could result in massive losses for all token holders. The lawsuit focused on potential problems if Ripple lost the case, including substantial financial penalties.
Ripple’s CEO chose to fight the charges instead of settling, as most other projects have done before. The legal battle has been ongoing for three years, and judging from the current situation, Ripple will likely emerge as the winner. If that happens, Ripple will clear its name, motivating investors in mass to adopt the platform’s unique global payments system. Moreover, XRP tokens will be fully legalized and regulated, just like Bitcoin, making XRP one of the most trusted cryptos on the market.
The disappearance of initial blocks raised suspicions of concealing the distribution of XRP. Allegations of XRP theft and agreements with original developers were also mentioned, inviting further scrutiny. David Schwartz, the CTO at Ripple, addressed these accusations through a series of tweets, dismissing the rationale behind the argument as “nonsensical” and compared to the formation of Bitcoin Cash.
Schwartz highlighted that when Bitcoin Cash came into existence, many individuals already held the cryptocurrency, but it was not due to any direct involvement from the creators of Bitcoin Cash.
He emphasized that system rules or operations modifications do not give rise to new versions of existing assets.
Considering that XRP has been unable to move from around US$0.41 in recent months, the recent increase in value to the current US$0.53 is excellent news for all those who have invested in this popular crypto. Many users are now wondering what will happen $with this crypto and whether $XRP can rise to US$0.75 if it wins against the SEC. A favorable outcome of the lawsuit, crypto experts say, could bring significant additional gains for $XRP. However, although $XRP may develop well by the end of the year, some other coins are expected to achieve much higher growth.
If the lawsuit outcome turns positive for Ripple, that will undoubtedly affect at least a slight increase in the value of $XRP. However, crypto experts agree that $XRP will not, at least not this year, see any significant increases in value. Its maximum predicted value for 2023 is around US$0.729927, but keep in mind that its value could drop to US$0.649935.
