A plethora of people across the world trade XRP with no difficulty, this is not the case in the United States, where Ripple is fighting the Securities and Exchange Commission (SEC).
In December 2020, the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, saying that the selling of XRP constituted an unregistered securities offering worth over $1.38 billion. As a result, several exchanges, mainly in the United States, have delisted XRP. Many overseas exchanges have put trading constraints on American traders or have blacklisted American IP addresses entirely outside of the United States.
Ripple has submitted a new filing on the deliberative process privilege (DPP). Before decisions are taken, the DPP protects third-party information, such as recommendations and analyses. To go through with the DPP, the SEC must establish a link between the files and data it seeks to retain privately. Proponents and observers alike are optimistic as a result of Ripple's response. Analysts believe Ripple is on course to win the SEC lawsuit. The price of XRP is projected to rise as a result of Ripple's win. Gregg Kidd says,
“I am looking for some form of a resolution from the Ripple case, and the SEC is more on trial than Ripple is.”
John Deaton, attorney for the approximately 65,000 XRP holders who were selected as Amicus Curiae in SEC v. Ripple's lawsuit has brought his thoughts forward on what might happen next for the coin. The importance of certain decisions and a bull market in making XRP the only cryptocurrency with regulatory certainty in the United States.
Due to last-minute revisions in DPP surrounding laws, ripple and dry have recently been allowed to re-brief to the court with new topics on the subject. Judge Sarah Netburn is doing an in-camera assessment of the papers that the SEC believes are privileged information to determine if they may be given to Ripple as part of the fact discovery process.
John Deaton discusses the possible scope of Ripple in the event of a future XRP bull run, which might exceed the likes of Morgan Stanley and Goldman Sachs, as well as the significance of a Ripple success. Deaton began by pointing out that Ripple owns more than 50 billion XRP; a $5 XRP is worth $250 billion, making Ripple far more valuable than MorganStanley or Goldman Sachs.
"GaryGensler and the SEC probably be facing a very critical precedent-setting loss with tremendous repercussions if Judge Torres dismisses the SEC's petition to strike the Fair Notice Defense and Judge Netburn overrules the SEC's assertion that the Bitcoin, Ethereum, and XRP papers are confidential."
Such implications could lead the SEC to seek trial or summary judgment. If XRP reaches $5, Ripple may sell 10% of the monthly unlocked escrow and pay a settlement/fine of up to $500 million, giving Gensler a major public triumph and bragging rights. It would be one of the most significant settlements in the history of the SEC. XRP is relisted and clarity is gained if the agreement includes a statement that current sales of XRP are not securities. The money might be used by the SEC to set up a fund to support XRP holders who have been affected.
"Gensler deserves credit for having increased his political possibilities. The ripple goes public and is quickly becoming one of the world's most valuable FinTech assets, displaying SWIFT. XRP is back in a battle with Ether for second place. XRP holders will finally be able to observe which technology succeeds."
Both the SEC and Ripple gain in the above scenario, but "only Bitcoin and XRP would be protected," according to John Deaton, who is concerned that ethereum might be next in line for an SEC suit.
"Does everyone win in the scenario above?" The SEC succeeds. Ripple succeeds. In my opinion, XRP holders who never sell are the winners. But what about other digital currencies? Ironically, only Bitcoin and XRP would be protected if the above scenario occurs. Can Etherium and ADA investors honestly claim to be unconcerned?”
According to Fox Business writer Gasparino, the SEC's Gensler is awaiting the result of the Ripple case before pursuing Ether. In my opinion, Gensler won't say whether or not he thinks Ether is secure. It's because he wants to be able to drive them away. The lawsuit would offer Ripple and XRP an edge in the future.
Talking of my verdict, only Bitcoin and XRP would be secure following the above-mentioned settlement, according to Ripple executives, who indicated that they filed the action to safeguard their interests as well as those of the cryptocurrency industry. I believe that the lawsuit could ultimately provide XRP and ripple an opportunity to move forward. Needless to say, the crypto acquisition is becoming the new normal in this ever-evolving world, and like other digital cryptos, we can buy XRP with PayPal, fiat cash, Bitcoin, or other cryptocurrencies on a variety of online exchanges effortlessly.