Charles Gasparino of FOX Business predicts adverse events that could befall almost the entire cryptocurrency industry if Ripple loses its court case with the SEC. Coinbase is already preparing for a negative scenario.
Ripple in defense of the entire cryptocurrency industry
Charles Gasparino, is a FOX Business correspondent who is very often involved in the topic of the cryptocurrency market. He appeared on Twitter to share his insights and opinion on the situation between Ripple and the SEC. The court case over the alleged sale of XRP as unregistered securities has been firing up the market since December 2020. There are many indications that it is nearing its conclusion, which should take place later in the first half of this year. In doing so, a multitude of scenarios for the form of its end are being aired. The consequences of the negative ones are explained by Gasparino.
According to him, a decisive win for the SEC could force almost all cryptocurrency projects (not including Bitcoin), to register with the regulator.
Encouraging people to turn on FOX Business and follow the discussion on this topic, Gasparino wrote:
“The cryptocurrency community sees bloodshed if the SEC prevails over Ripple. There will be more regulation/surveillance that will affect almost every sector, including the exchange business. Gary Gensler wants to force registration of every coin except BTC.”
Coinbase at the ready
While many in the community expect the Coinbase exchange to resume trading in XRP, there are reports that indicate that the platform is even working in the opposite direction. Charles Gasparino also reports on this in a tweet:
“Coinbase tells Fox Business that it is developing a plan to survive SEC regulatory repression on digital assets, using broker-dealers to trade coins registered as securities.”
Meanwhile, a case described by the media as the “cryptocurrency trial of the century” is inexorably drawing to a close. Attorney James K. Filan predicts that a verdict could come by March 31, 2023. So far, various settlement dates have been repeatedly forecast. However, none of them have proved accurate.
LBRY lost, will XRP face the same?
In November 2022, another case with the same theme was concluded. At that time, the LBRY network, which both the SEC and the court deemed an unregistered security, was the loser. Nevertheless, attorney John Deaton, who represents XRP holders in the lawsuit, points out that LBRY lost because its representatives failed to challenge the second point of the Howey Test. He also pointed out that LBRY failed to distinguish between the original sale of the token and that which occurred on the secondary market.
The matter was also commented on by Jeremy Hogan, who, siding strongly with XRP and Ripple, mentioned:
“If Ripple’s kung-fu is not good enough, none is.”