The conclusion of the Ripple vs SEC lawsuit brings XRP a sense of relief and regulatory clarity. However, according to Versan Aljarrah, the Founder of Black Swan Capitalist, several critical questions still need immediate attention despite the legal battle ending.
Here’s a deep dive into this interesting take.
The end of the #Ripple lawsuit and the regulatory clarity of #XRP bring me relief. However, with the #legal battle concluded, several issues still demand IMMEDIATE attention
First, the #SEC lacked the legal authority to pursue #Ripple from the start, as there was no LEGAL… pic.twitter.com/3OEPIph41F
— Black Swan Capitalist (@VersanAljarrah) August 8, 2024
SEC’s Questionable Authority and Conflict of Interest
From the start, the SEC’s approach towards Ripple was questioned. Analyst argues there was no legal precedent for the SEC’s actions against Ripple, highlighting a significant conflict of interest. This contrasts sharply with how other digital assets like Ethereum, Bitcoin, and Solana have been treated, raising concerns about the SEC’s true motives.
Moreover, the SEC’s handling of various digital assets has been inconsistent. Despite facing regulatory uncertainties, Bitcoin, Ethereum, Solana, and Tether have been treated more leniently than Ripple and XRP. This partiality suggests a potential conflict of interest, especially considering the SEC’s relationships with entities involved in these assets, such as FTX’s Sam Bankman-Fried.
Impact on Retail Investors
Moving on, the SEC’s actions against Ripple have significantly negatively impacted retail investors, leading to millions in financial losses and delaying the benefits of Ripple’s transformative technology. Analyst emphasizes that the SEC’s approach has stifled innovation, created confusion, and violated laws, necessitating accountability.
Call for Accountability
Prominent figures such as Senator Elizabeth Warren, Representative Maxine Waters, and SEC Chair Gary Gensler have been scrutinized for their roles in this regulatory saga. Independent lawyers, journalists, and former SEC officials have highlighted their involvement in collapsing institutions like TerraLuna, Celsius, Gemini, and FTX. The ongoing investigation into “EthGate” further underscores the need for legal action and transparency within the SEC.
The Need for Legal Action Against the SEC
The analyst further calls for Ripple to sue the SEC to conduct an investigation that would publicly expose regulatory overreach, misconduct, and criminal behavior. Ending the Ripple lawsuit is just the beginning of addressing broader concerns and holding bad actors in the industry accountable.
The settlement involved Ripple paying $125 million in civil penalties and agreeing to an injunction against future securities law violations. However, an appeal by the SEC is expected, potentially extending the legal proceedings.
Will both parties drag the case further, or is this the finale to this decade-long Ripple vs. SEC case? Stay tuned to learn more.
