Amid the ongoing legal battle between SEC and Ripple, several crypto enthusiasts have voiced their opinion on the case. Recently, Gene Hoffman, the President and COO of Chia Network, has given his insights on the issue.
Hoffman Cites SEC’s Recent Win Against LBRY
According to the serial entrepreneur, federal courts know that most people bought XRP hoping its price would increase. Hence, he believes Ripple’s arguments that the tokens were utilities would not succeed.
Hoffman stressed that the US regulator has never lost a Section 5 legal battle in decades. Recall that Hoffman has worked with the agency in the past.
He was the former leader of the regulator’s corporate finance division. Additionally, the President argued that the difference between LBRY Credits and XRP tokens is very minute.
Furthermore, the ex-SEC executive said he informed Ripple in 2019 that its XRP was unlawful. But, unfortunately, the then executives did nothing about it.
SEC won its legal battle against the P2P sharing platform LBRY last month. On November 7th, the Judge overseeing the case noted that the LBRY Credits tokens were securities.
Hence, Hoffman is confident that the SEC will win its battle against Ripple after the agency’s victory against LBRY.
Additionally, Hoffman noted that the regulator’s treatment of Hinman’s 2018 speech on Ethereum was “a fiasco.” However, he believes the speech is not related to the present situation.
Hoffman Accuses Ripple Of Misleading The Crypto Community
Furthermore, the IT entrepreneur said that Ripple had misled many individuals working in the crypto space. He remarked that it was unfortunate that many Ripple employees deceived others about this matter.
Hoffman confirmed that only “very few” crypto exchanges out of the top 100 had not registered securities in the US. The ongoing SEC-Ripple lawsuit began about two years ago.
At the time, SEC accused Ripple of selling unregistered XRP tokens as securities. Brad Garlinghouse, Ripple’s CEO, has expressed his displeasure about the situation several times.
Meanwhile, Garlinghouse is optimistic that the legal battle will end in Q1 2023. Since the securities regulator’s 2020 lawsuit against Ripple, the price of its native token, XRP, has dropped.
Many experts forecast that the ongoing legal dispute will continue to affect the token’s price. Amid the rising FUD in the crypto market, the price of XRP could crash significantly if Ripple loses the case.
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