In recent discussions led by Ben Armstrong, the CoinSpeech team has gathered the most important insights from his latest video appearance. Below, you can find a summary of the key points along with Ben Armstrong’s new video.
Why the SEC Targeted XRP
Armstrong dives into the real reasons behind the SEC’s decision to go after XRP and other cryptocurrencies. Despite the official stance being centered around “disclosures that are required by the law”, Armstrong asserts, “It’s not about the millions of dollars traded every day in crypto… it’s all about disclosure.”
The Legal Battle So Far
The SEC filed a lawsuit against Ripple Labs and its executives in December 2020, alleging that XRP was an unregistered security. The legal battle has been ongoing, recently seeing a partial resolution. One notable point Armstrong highlights is that a California judge dismissed four class action claims against Ripple but allowed one state law claim to proceed to trial. Armstrong elaborates, “This means a jury will decide whether Ripple CEO Brad Garlinghouse made misleading statements in a 2017 interview.”
The Stakes Involved
The SEC and Ripple are still locked in disputes over the appropriate penalties. While the SEC is seeking nearly $2 billion in disgorgement, interest, and penalties, Ripple argues that they should face a penalty of no more than $10 million. Armstrong points out, “Why not give them to pay billions of dollars to an agent of the United States government?”
Impact on Ripple and XRP
The ongoing lawsuit has already affected XRP’s price and market sentiment. A partial victory has brought some relief, but uncertainty remains. Armstrong advises, “Keep your eye on the case for updates and conversations about important topics like this.”
Potential Ramifications
One crucial aspect to consider is the potential ripple effect (pun intended) on the broader cryptocurrency market. “This creates some volatility not only for the price of Ripple’s XRP but also for the broader crypto markets because we don’t know who the SEC might go after next,” Armstrong warns. The final decision in this case could set important precedents for future cryptocurrency regulations.
For those interested in deeper discussions and more updates, Armstrong recommends joining their Discord community.