HomeNewsSEC's Ripple Lawsuit Stalls XRP's Potential 3-Year Growth Trajectory

SEC’s Ripple Lawsuit Stalls XRP’s Potential 3-Year Growth Trajectory

- Advertisement -
  • Pro-XRP attorney John Deaton indicates that SEC’s lawsuit against Ripple hindered XRP’s potential adoption for years.
  • In light of Coinbase’s stake acquisition in Circle, there’s speculation about what might have been if XRP faced no legal challenges.

Coinbase’s Ripple Connection: What Could Have Been

The crypto landscape is not just a financial playground, but also a battleground for legal debates. At the heart of one such debate lies the ongoing litigation between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs regarding the status of its cryptocurrency, XRP.

John Deaton, a staunch supporter of XRP and a legal expert in cryptocurrency litigations, recently drew sharp criticisms towards the SEC. He accentuates that their lawsuit against Ripple has cost XRP precious years in potential adoption and growth. His observations are particularly poignant now, in the wake of Coinbase’s recent stake acquisition in Circle.

- Advertisement -

Highlighting the chronological events, Deaton pointed out that Coinbase’s integration of XRP came after the exchange meticulously engaged with SEC lawyers in early 2019. Their goal was to ensure that XRP was considered a digital asset and not a security, ahead of their listing in February 2019. A significant point to underline here is that the SEC did not deter Coinbase from listing XRP, even after analyzing it against the Howey test—a legal criterion used to determine if a transaction qualifies as an investment contract.

- Advertisement -

In the rapidly evolving crypto ecosystem, the emphasis on transaction speeds is paramount. It’s worth noting that during the period between 2018 and 2019, both XRP and Circle’s USDC were listed by Coinbase. XRP boasted transaction speeds of 3-5 seconds, juxtaposed with USDC’s 10-12 seconds.

In a revelation that further amplifies the implications of the SEC’s lawsuit, Deaton conjectures that Coinbase might have opted to acquire a stake in Ripple, rather than Circle, if XRP had not been entangled in legal disputes.

A notable feather in XRP’s cap was MoneyGram’s adoption of the cryptocurrency merely six months post its listing on Coinbase. This was a significant endorsement, as MoneyGram’s integration demonstrated XRP’s potential as a game-changer in a world where traditional bank transfers were sluggish.

Yet, in a twist that baffled many, former SEC chairman Jay Clayton initiated a lawsuit against Ripple. This was despite the SEC’s previous analysis deeming XRP not a security and allowing MoneyGram to incorporate XRP in its cross-border payment systems.

As the crypto community deciphers these events, Deaton’s reflections raise pertinent questions. What trajectory would XRP’s adoption have taken in the absence of the lawsuit? And, in the grander scheme of things, how do such litigations impact the potential and promise of cryptocurrencies?

Best Crypto Exchange for Everyone:

  • Invest in Ripple (XRP) and 70+ cryptocurrencies and 3,000 other assets.
  • 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
  • Copy top-performing traders in real time, automatically.
  • Regulated by financial authorities including FAC and FINRA.

2.8 Million Users

Get Started


- Advertisement -
ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
- Advertisment -spot_img