The U.S. Securities and Exchange Commission has an ongoing lawsuit against Ripple Labs, the company behind the cryptocurrency XRP (SEC). The SEC claims that Ripple Labs raised billions of dollars through an unregistered securities offering and that XRP is a security. The lawsuit is being fought in court by Ripple Labs, which has denied the accusations. The verdict in the case can have enormous repercussions for the crypto space.
The whole cryptocurrency sector has been heavily invested in the result of this litigation for some months. However, it’s intriguing to see that even banks are now paying close attention to this litigation.
IG Bank, a London-based company, wrote a piece about the Ripple v. SEC lawsuit late last week. The news is intriguing because it demonstrates that major financial players are still paying attention to the crypto business.
IG Bank’s Report
IG Bank is a Swiss-regulated financial company that provides professional clients with investment and trading services. It noted that an “SEC victory could severely limit the ability of crypto companies to grow.”
Furthermore, crypto companies like Ripple frequently introduce new coins in order to make income. The bank went into detail about the case, concluding that, “A positive outcome for Ripple could see XRP soar, but with the case in the air, this is far from guaranteed.”
How The Ripple Lawsuit Could Shape The Future
John Deaton, the founder of Crypto Law and a supporter of Ripple, recently tweeted an ominous warning that the sector would soon see the most aggressive attempt to shut down cryptocurrency.
Source: https://coinpedia.org/news/ripple-vs-sec-a-game-changing-battle-for-the-future-of-cryptocurrency-in-the-us/