RIPPLE'S VICTORY OVER SEC: A WIN FOR ALL OF CRYPTO
SEC Vs Ripple! The Eponymous battle for the fate of cryptocurrency has just landed a huge Victory in favor of the masses! The government and its security watchdog have been defeated in a remarkable victory that will live long in the hearts of all cryptocurrency enthusiasts worldwide, and may mark the beginning of a massive cryptocurrency adoption against the proposed regulatory crackdown.
Where Did It All Start?
SEC Vs Ripple is an ongoing court case in the United States' Southern District Court of New York that is seen by many, as the case to decide the future of cryptocurrency adoption in the United States and Canada.
In 2020, The US securities and Exchange commission (SEC) alleged that Ripple, The Blockchain developer and creators of XRP token had raised more than $1.4 billion by offering XRP to investors as an unregistered security. Ripple quickly fired back, claiming that it’s native Blockchain token offering is not a security.
This marked the beginning of so many long months of battle in the court of law between the power arm of financial regulation, and Ripple’s executives including the Enigmatic CEO, Brad Garlinghouse, co-founder Chris Larsen, and the never to be intimidated Chief Legal officer, Stuart Alderoty.
The ripple effect of this case began to take its toll on Ripples native XRP token and in no time, we saw the troubled cryptocurrency lost its position as the third largest Cryptocurrency by market cap, to the likes of Tether’s USDT and Binance’s BNB.
Top crypto currency enthusiasts quickly showed their dismay and concern for the amount of energy the SEC was displaying to put XRP behind bars.
These concerns and more solidarity from the crypto community, further established the case as not just a case of Regulation against Ripple, but a case of the world system of governance against the whole of cryptocurrency.
Warnings and conspiracy theories began to fly concerning these assertions and soon enough, like the biblical narrative reads in Acts 12:2, SEC soon moved above its case with Ripple and began to clamp down on almost all cryptocurrency establishments.
Karaken and Coinbase, two of crypto’s largest exchanges in the United States of America soon received the hammer blow of regulation. Kraken quickly succumbed to the heat and accepted some form of regulation, while Coinbase hurled itself through the fence and scampered for its dear life.
Binance, the world’s largest cryptocurrency Exchange was up next in SEC’s radar. Like the Grimm reaper coursing through a barn field and executing the Mice of the field, SEC brought down its regulatory hammer on CZ’s Binance, slamming 13 charges against the Chinese-Canadian and his establishment. CZ was lost for words but together with Coinbase, and as Ripple had done all these years, decided to put up a stern fight.
Very quickly, Binance was kicked out of several European countries including Netherlands and Belgium, after having been kicked out of the US, Nigeria, China and Canada earlier.
It was indeed the darkest hours in the history of cryptocurrency, with many traditional tokens recording their all-time lows. In the same period, the infamous Terra-Luna near extinction experience happened; all spurred by cryptocurrency’s fight against the heat of regulation.
Ripple’s victory, one for all of cryptocurrency
Part of Ripple’s main strategy in the battle involved what is now known as the Hinman documents. This involved Alderoty and other Ripple lawyers presenting a hidden document containing internal SEC’s draft and emails relating to a former director’s speech more than four years ago. In the document, William Hinman, SEC’s director in 2018 had stated that he did not consider ether (ETH) a security, and suggested that tokens could Initially start out as securities, but evolve into something else over time.
Not much is known about the impact of the Hinman documents which were presented in court about a month ago, but what was certain at the time, was that Ripple’s top executives saw this as their Wild card and where certain from the point that they laid their hands on the documents, that Victory was certain.
In a July 13 Verdict, the court effectively dismissed the case initiated about 3 years prior by the SEC, recognizing that the XRP token does not fall under the securities classification. Following the ruling, Ripple CEO, Brad Garlinghouse stated that from the beginning of the case in 2020, the company was confident it was on the right side of the law.
Since the court’s judgement in the wee hours of July 13, there has been massive celebration in the cryptocurrency community. The people’s confidence has been partially restored, with Whales jumping into the market to herald an incoming potential bull run.
XRP token has surged over 70% within 12 hours of the ruling, while Ether smashed the $2000 resistance. Bitcoin also surged massively, gaining quickly on the $32k resistance.
Yes! Ripples victory, is really a landmark victory for all of cryptocurrency!
