XRP Lawsuit Unlikely to Have a Clear Winner
We recently reported on Ripple’s lawsuit with the United States Securities and Exchange Commission (SEC) and its possible outcomes. According to an attorney at the firm, it is unlikely that either party will emerge victorious.
The case has been gaining traction, even before SEC chairman Jay Clayton publicly announced that XRP should be classified as a security. Although cryptocurrency firms such as Coinbase have already begun delisting XRP, it is yet to be known if the token will be declared illegal or not.
The SEC had alleged that Ripple sold $1.38 billion worth of unlicensed securities in the form of XRP over a period of around seven years. In response, Ripple had filed a counter-suit claiming the regulator’s decision was “arbitrary and capricious” as well as unjustified.
In a recent interview with Bloomberg, attorney Justin Danilewitz from Reed Smith suggested that the outcome of this case could be difficult to predict.
"No one is going to come out ahead," Danilewitz said. "I don't think anyone's going to win." He went on to explain that because it is not certain whether XRP should be classified as a security or not, both parties would have difficulty making their arguments convincingly.
"The uncertainty around this makes it hard for either side - because they don't have clear direction on which way they're going," Danilewitz added.
"If they rule one way or another then they might come out ahead but right now nobody has any clarity so you don't know what the result's going to be."