A crypto legal expert predicts a supply shock for Ripple’s native token XRP if the San Francisco-based firm solves its case with the US Securities and Exchange Commission.
On December 22, 2020, the day before former President Jay Clayton stepped down, the SEC filed a lawsuit against Ripple, and some noted the timing. “It made it seem more political,” Jeng said, noting that Ripple has been the agency’s top cryptocurrency issuer in recent years.
Each new episode of the SEC-Ripple legal battle is being watched closely by the entire industry as it is likely to set an important precedent for the crypto ecosystem. Attorney Jeremy Hogan recently discussed the far-reaching implications of a Ripple victory for the defense of the Fair Notice.
Jeremy Hogan discussing Ripple
Jeremy Hogan, attorney and XRP supporter, discusses a scenario in which Ripple can settle its legal battle with the SEC in a new video. He believes that a settlement would most likely include an agreement that limits XRP sales to private sales to companies and customers, thereby reducing the amount of XRP on the market. He stressed that the movement of XRP into the market would be limited or slowed down.
Sales to Section D or Company Buyers will not be eligible to be listed on any public stock exchange for at least six months, if not a year. In a comparison, this period would effectively limit the flow of XRP into the market for the coming years. He said “a settlement agreement would, in my view, almost likely involve Ripple paying a fine, but it would be limited to dates prior to the lawsuit”.
Since the funds would be difficult to distribute, an agreement would almost certainly rule out profit skimming to buyers. Ripple, according to him, will be the first cryptocurrency company to be fully approved by regulators if they reach an agreement with the SEC.
XRP is the 7th placethe Cryptocurrency. At the time of writing, its value is $ 0.8318, up 10.38%. For the past 24 hours, the trading volume of the coin is $ 4,186,087,083 with a market capitalization of $ 39,619,452,078. Currently, the circulating supply is 46.15 billion XRP.
The settlement would clarify XRP in terms of securities violations. The Securities and Exchange Commission would issue Ripple with a clean health certificate, making it the first cryptocurrency company to do so.