• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
xrp crypto ripple sec lawsuit
Nexo Logo

Here’s Why The XRP Securities Suit Is Worse Than Past SEC Charges

Tony Spilotro by Tony Spilotro
1 year ago
in XRP
Reading Time: 3 mins read
Advertisement

In what has had an enormous ripple effect across the crypto industry, the SEC has filed a lawsuit that deems the XRP cryptocurrency token to be an unregistered security. Those on the defensive look to past instances of EOS and KIN as examples of tokens launched that barely got a slap on the wrist, paid a fine, and went on their merry ways.

However, one crypto analyst with a strong understanding of law explains exactly why this Ripple lawsuit is especially bad, and why XRP investors in the US are right to be worried.

Ripple Lawsuit: SEC Fires Shot Heard Round The Crypto Industry

This week, Ripple CEO first broke the news to the media that he was expecting a lawsuit from the United States Securities and Exchange Commission.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The crypto market took pause to digest the new information and consider the potential impact of what was to come, and then XRP plummeted once investors came to grips with the severity.

Related Reading | Ripple Lawsuit Triggers XRP Led Altcoin Apocalypse

Retail investors panic sold, and even large hedge funds based in the US have now liquidated their holdings to stay compliant with US law. The expectation is that major exchanges like Coinbase will delist the altcoin next.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

It immediately caused the cryptocurrency to fall in overall market cap, bleeding billions in hours. And while the “XRP army,” analysts, and supporters came out in droves with reasons why Ripple will be fine and so will their favorite centralized cryptocurrency, there is serious risk in this situation compared to others.

 xrp sec lawsuit

A look at the aftermath of the SEC lawsuit. However, support is still holding... | Source: XRPUSD on TradingView.com

 

Why The XRP Suit Doesn’t Compare To EOS Or KIN Cases

XRP supporters holding on to what they still can, might find comfort in knowing that the companies behind EOS and KIN tokens were able to successfully settle with the SEC, pay their fines, and move on.

Adam Cochran professional analyst and partner at Cinneamhain Ventures breaks down why the Ripple case is different.

First, the SEC asserts that XRP today is still an unregistered security, while EOS and KIN tokens were only at the time of sale. They also have documentation of centralization, which is what the crypto community often disliked most about XRP.

Related Reading | Ripple Effect: What The XRP SEC Lawsuit Says To New Crypto Projects

Ripple execs Brad Garlinghouse and Chris Larsen are explicitly named in the case as liable. Cochran also says that exchanges will need to delist XRP immediately or risk being in violation of securities laws themselves. The SEC has issued a statement offering clarity around the situation, but others have added that although some leniency is being given to exchanges that have offered the token to customers thus far, it doesn’t give them the freedom to keep doing so now that XRP has been deemed a security.

Lastly, the case could drag out for years, causing XRP to suffer significantly as a result.

Featured image from Deposit Photos, Charts from TradingView.com
Tags: cryptoRipplesecxrpXRPBTCXRPUSDxrpusdt
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Tony Spilotro

Tony Spilotro

I'm Tony Spilotro. Behind the pseudonym, I'm a global remote work leader with a decade of award-winning content experience and excellence. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter at @tonyspilotroBTC and feel free to drop me a line if you would like to work together.

Related Posts

XRP whales

XRP Whales Boost Accumulation Appetite, Register 2-Month Peak Holding Supply

37 mins ago
Ripple

Ripple (XRP) Struggles To Breach $0.45 Level, Down 16% In Last 7 Days

1 week ago
Ripple

Ripple (XRP) Price Picks Up As SEC Legal Showdown Drags On

2 weeks ago
xrp

XRP Price Rebounds, Up 6% In 24 Hours, After Suffering Major Hiccup

3 weeks ago
Altcoins ready to bull

These Two Altcoins Are Ready For Major Pullback, Says Crypto Analyst

3 months ago
Ripple vs. SEC

XRP Price Surges – Is Ripple Winning The Fight Against SEC?

4 months ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Wildcoins Casino

Wildcoins Casino

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

A guide to Capricorn, the first DEX on Cube Chain with hundreds million USD Liquidity Investment

May 27, 2022

Brawltales’ First Batch of NFT is Launching Soon

May 27, 2022

Interest-free Loan, New way of Assets Increase

May 26, 2022

Hoskinsea Partners with Pavia land to Setup A Virtual Headquater On The Metaverse

May 26, 2022

The first free and equal digital country – HyperNation global theme conference was held

May 26, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win
  • Spin & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.