The SEC may end up being unforgiving towards Ripple and XRP. This is said by a real expert in crypto regulations, namely the lawyer Massimo Simbula. Simbula in fact has written a specific article for Coinlex on the matter concerning the SEC […]
The SEC may end up being unforgiving towards Ripple and XRP.
This is said by a real expert in crypto regulations, namely the lawyer Massimo Simbula.
Simbula in fact has written a specific article for Coinlex on the matter concerning the SEC case against Ripple, in which he takes stock of the situation.
First of all, he highlights what many experts actually know, namely that Ripple has nothing to do with cryptocurrencies.
Therefore, contrary to what the company claims, the SEC’s attack on Ripple is not an attack on cryptocurrencies at all, but on a private company accused of operating without complying with the regulations it was required to comply with by law.
According to Simbula, Ripple’s mistake was that it tried to raise money by selling cryptocurrencies, or self-styled cryptoassets, without following the regular procedures laid down by the relevant authorities.
It would therefore not have been a real crypto project that finances itself by issuing a token, but an attempt by a private company to exploit investor interest in cryptocurrencies to raise money by circumventing regulations.
This reasoning, for example, cannot be applied to real cryptocurrencies, such as Bitcoin, so much so that it would not even make sense to assume a similar action by the SEC against this computer protocol that has no headquarters, no founder on call, no CEO, no intercom, no VAT number, no lawyer.
To claim that the SEC’s attack on Ripple is an attack on cryptocurrencies is so completely misleading as to be objectively incorrect.
SEC vs Ripple 7 years after XRP
However, many wonder why the SEC decided to act only after 7 years (Ripple was born in 2013).
Simbula’s answer is very simple:
„The SEC is often slow (apart from the curious Telegram case), but relentless. And the later it intervenes, the more disastrous the impact with reality will be.“
If Simbula is right, Ripple’s chances of success in the face of the SEC’s lawsuit could be decidedly low.
He also adds something else that many crypto experts have known for a long time:
„Most of the self-styled cryptocurrencies in circulation are blatant and useless scams. Some of them are not even real crypto and their value can be wiped out in seconds. All it takes is a summons from the SEC and you don’t have to wait for a conviction to see their value destroyed.“
XRP, for example, has lost more than half its value in the last week alone, and more than 60% in the last month, while BTC and ETH have significantly increased their value in the same period.
This does not necessarily mean that XRP is a scam, but that it is not enough to claim to have created a cryptocurrency for this to be true.
XRP is not, and never has been, a real cryptocurrency, although Ripple has always passed it off as such. This, regardless of how the SEC lawsuit turns out, is a mistake that it would be wrong to forget.