Future of crypto would depend on the outcome of the Ripple vs SEC lawsuit?

Many crypto players are hoping that Ripple will emerge victorious from the lawsuit against the SEC. They claimed that the victory of the XRP issuer would have a big impact on the crypto. This could provide an important precedent for crypto businesses that find themselves in the same situation. However, a crypto industry executive was skeptical of Ripple’s victory recently.

Registration would be the key to avoiding attacks from the regulator

Ripple, which said it was confident about the outcome of its lawsuit against the SEC, could well lose. This is what Gene Hoffman, president of Chia Network, said on February 27 on Twitter. According to the explanations of the crypto leader, the victory of the SEC of the United States in this case is certain. Hoffman is virtually sure and certain that the XRP issuer will lose the case.

It all started when a Twitter user referenced some of the SEC Chairman’s remarks. Gary Gensler has previously stated that apart from bitcoin (BTC), all cryptos are securities. The user relied on this statement to question Hoffman, sarcastically. He asked the leader what he thought of the superiority of the Chia token (XCH) over bitcoin (BTC).

Towards the victory of the SEC?

THE President of Chia Network replied that the XCH token is not a security. He added that the company is considering registering Chia’s shares. Hoffman clarified that registration is an obvious way to become legal. He suggested that others deliberately choose not to register their actions, thereby operating illegally.

Ripple allegedly made a big mistake that led to the lawsuit

Matt Hamilton, former Director of Developer Relations at Ripple, commented on Gene Hoffman’s remarks. He reported that the XRP issuer had registered its shares. Yet the Securities and Exchange Commission still went after him. Hoffman countered that Ripple had already made a mistake.

The latter is that the blockchain company sold XRP tokens before registering their shares. He pointed out that without the sale, a token cannot be treated as a security. Hoffman added that his company has never sold XCH tokens despite owning some.

According to Matt Hamilton, the president of Chia Network should monitor the lawsuit between Ripple and the SEC very closely. Hamilton said the regulator is trying to get secondary market sales accepted as securities.

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