Fox Business journalist and blogger Charles Gasparino mentioned that more crypto projects could suffer if Ripple loses its SEC lawsuit.
Leading journalist explains “nightmare Ripple-SEC scenario” for crypto market
In his latest tweets, Charles Gasparino shared the worst-case scenario that could happen if Ripple loses the legal battle. The Fox Business journalist believes that in such a situation, not only Ripple, but the entire crypto industry will experience a “nightmare scenario”.
This scenario assumes that Ripple lost the case first and foremost. Then, inspired by the victory, Gary Gensler will start attacking Ethereum, possibly via court, for its ETH sales. This will cripple “two of the best technologies in crypto,” as the journalist mentioned. Gasparino also adds that the majority of cryptocurrencies in the market are not backed by anything. As for Bitcoin, the leader believes that crypto is built on old technology.
Nightmare #crypto scenario: @Ripple loses @SECGov case. @GaryGensler could, probably will target @ethereum for its sales, crippling the two best technologies in crypto. Most of these coins are back by nothing; @Bitcoin's tech is outdated. Ripple and Etherium are real. Scary stuff
— Charles Gasparino (@CGasparino) January 5, 2023
Statements made by Charles Gasparino on Twitter today:
Nightmare crypto scenario: Ripple loses SEC case. GaryGensler will likely target Ethereum and clumsy the two best technologies in crypto. Most of these cryptocurrencies are not backed by anything. Bitcoin’s technology is old. Ripple and Ethereum are real technologies. These are all terrible things.
Charles Gasparino offers reasoning on SEC’s intention
The Fox Business journalist previously said that the main reason the SEC went after Ripple and XRP was “the company is making fun of the regulator”. The main reason for the current collapse of the FTX exchange and its founder, Sam Bankman-Fried, who was arrested for defrauding investors, was probably the encouragement he found in the continuation of XRP sales by Ripple despite the SEC’s warnings.
Gasparino says that the Ripple management violated the regulator’s authority as it continued to sell XRP despite the stop notices from the SEC. As for the second largest blockchain Ethereum, Gasparino “probably had a sell-off and stalled. There are no cases,” he said.
(2/2) SECs authority by continuing to sell #XRP after on notice to stop because the way it was being sold seemed to establish #XRPs designation as a security. Notice: @ethereum did possibly one sale and stopped. No case. Not picking sides; just reporting why case was brought
— Charles Gasparino (@CGasparino) January 4, 2023
According to a recent survey conducted by CryptoLaw founder John Deaton, who has been closely following the case, the XRP community expects the case to be resolved within this year rather than result in a verdict.
https://twitter.com/JohnEDeaton1/status/1607900224705683456
In the latest developments from the case, Ripple has pledged to appeal in court and dismissed the allegations made in the SEC’s complaint. The legal process is still ongoing and it is not yet clear how it will be handled. However, Ripple CEO Brad Garlinghouse often voices his belief that the company will win the legal battle. His latest statement came on Twitter on January 3rd.
Today is the first day of the 118th Congress. While prior efforts at regulatory clarity for crypto in the US have stalled, I am cautiously optimistic that 2023 is the year we will (finally!) see a breakthrough. A thread on why…
— Brad Garlinghouse (@bgarlinghouse) January 3, 2023
As a result, Ripple had to complete its legal issue with the SEC by Q4 of 2022. But the decision has been delayed and will not be completed until 2023 now. In the past weeks, we have conveyed that Ripple has requested to hide financial files as Kriptokoin.com.
