Crypto Market Will See A Bloodbath If Ripple Loses To SEC, Gasparino Says

Jake Simmons

1 year ago

3 mins read

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In recent days, a heated discussion has arisen between prominent journalist and Fox Business host Charles Gasparino and the Ripple / XRP community. Gasparino voiced that the US Securities and Exchange Commission (SEC) had legitimate reasons why they targeted and sued Ripple prior to FTX.

Even Ripple’s legal counsel Stuart Alderoty took a stand and rejected the arguments, as Bitcoinist reported. Meanwhile, the Fox Business host did clarify that he has no idea who will win the lawsuit. He even admitted that the judge’s comments “initially indicated she would side with Ripple,” but at the same time, he warned that this was before the “whole SBF FTX implosion.”

Ripple Victory Is Crucial For The Entire Crypto Industry

In his two most recent tweets, Gasparino paints a dark future scenario for the broader crypto market and shared his view on what consequences the industry could face if the SEC wins against Ripple. Gasparino wrote via Twitter:

Crypto community sees a bloodbath if SEC prevails against Ripple in the form of more regs/oversight that will impact nearly every sector including the exchange biz given Gary Gensler’s desire to force registration of every coin but BTC.

Gasparino is not entirely alone in this opinion either. Even Ripple has expressed in previous statements that the company is fighting not just for itself, but the entire crypto industry, to avoid an overreaching regulation by the SEC.

Noteworthy is also Gasparino’s latest tweet which refers to the largest American crypto exchange. The journalist asserts that Coinbase is already developing a plan to survive a regulatory crackdown by the SEC:

Coinbase tells Fox Business it’s developing a plan to survive an SEC regulatory crackdown on digital assets using broker-dealers to trade coins registered as securities. Move comes as SEC case v Ripple looms; SEC win could force coins aside from BTC to register.

What Might A Bloodbath Look Like For The Crypto Market?

The Fox Business host does not define what he means by a bloodbath. However, a look at history helps to understand the thesis. When the SEC sued Ripple on December 22, 2020, the price dropped a whopping 68% in one week.

While Bitcoin and Ethereum are currently down 74.74% and 72.62% from their all-time highs, respectively, XRP is 89.31% below its all-time high of $3.40, which was reached on January 07, 2018. Thus, XRP is showing significant underperformance.

The outcome of the court battle remains on the razor’s edge, with the XRP community, of course, seeing plenty of arguments in favor of a Ripple victory. In a recent blog post, Ripple’s general counsel Stuart Alderoty revealed that he expects a – positive – outcome for the lawsuit in the second quarter of 2023.

At press time, the XRP price was trading at $0.3640. With yesterday’s upward movement, XRP was able to break through the key resistance at $0.3560. This opens up the possibility to attack the next resistance at $0.3740, possibly as early as tomorrow, Thursday, when the CPI data for December is released.

Ripple XRP USD — XRP price breaks through key resistance, 1-day chart | Source: XRPUSD on TradingView.com

Featured image from iStock, Chart from TradingView.com

Jake Simmons

Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with NewsBTC.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.

His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.

Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control.

For Jake, Bitcoin represents more than just an investment; it's a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.

As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.

In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.

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