The news that Ripple would be sued caused XRP investors to start the day very badly. It is not yet certain that the SEC, the US financial regulator, will sue Ripple, but the disclosure of Ripple’s CEO personally raises the possibility. So, how likely is it that XRP will be declared securities in such a case?
Ripple still in securities stalemate
In fact, the announcement of XRP, which Ripple released as a securities, has long been a rumor that has been circulating backstage. A class-action lawsuit has previously been filed by individual investors against Ripple and its executives, and the case in question is still ongoing.
Bitcoin and Ether were personally certified by US regulators as not securities. But the relationship between XRP and Ripple makes things very difficult for the third-largest cryptocurrency. XRP, which has lost close to 20% in a short time with the news, may take another blow with the opening of the case.
The announcement by the director of the Coin Center, a nonprofit research institution focused on the cryptocurrency sector, further shattered the hopes of investors who expected a positive outcome from the case.
How likely is XRP to be declared securities?
Coin Center manager Jerry Brito responded with a tweet to a question about the issue. Brito said in its corresponding post that BTC and ETH had prepared shipments explaining why they were not securities, but a similar post for Ripple (XRP) could not be found. The Coin Center executive stated that they had “nothing to say” about XRP’s lack of securities.
Hopes for XRP not completely exhausted
Of course, there have been names that have made opposing statements. Twitter user Equidity Capital listed people and institutions highlighting that XRP is not securities:
In previous years, Japan and the UK’s financial regulators have issued statements that XRP is not securities. Ripple’s CEO also stressed in his response to the SEC that Japan’s financial regulator does not consider XRP a securities.
Although it is not yet clear whether the case will even be filed, the only thing that is clear is that in such a situation, it seems that the war will be very difficult.