Ripple might have to settle with the SEC in 2021. In fact, this prediction comes after looking at the hard evidences that EOS company Block did the same back in 2019.
The SEC lawsuit that happened towards mid-December 2020 shocked the cryptocurrency market. Consequently, investors got worried and dumped the coin that was trading around USD 0.70. XRP suffered a lot and reached a low price of USD 0.17, losing 75% of its value.
Can Ripple Company really settle with SEC?
Before seeing how Ripple company can settle the lawsuit, we need to understand WHY the lawsuit took place. Back in December 2020, the SEC slammed Ripple with a lawsuit for allegedly selling securities without a proper license. Of course, this statement is greatly debatable. First, cryptocurrencies were never considered a security, and by nature are not regulated. Second, there are no clear rules or specifics around cryptocurrencies yet. Ruling out that Ripple was dealing in a security that is not registered is plainly absurd.
Above all, here’s a quick refresher for those who missed this news from back in 2019. Block.one, the company behind EOS had the EXACT SAME allegations with the SEC, and they managed to settle within 1 year.
EOS maker Block.One must pay $24 million in penalties for conducting an unregistered securities sale, the U.S. Securities and Exchange Commission (SEC) announced Monday evening.
In the meantime, XRP price is hovering around USD 0.45 and is #7 in the list of the largest crytpos by market cap.
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