Joseph Hall, a former SEC official, argues that the lawsuit against Ripple is by no means based on convincing allegations.
In fact, in a lengthy article specifically dedicated to this case, Hall asks:
"Why the heck did the agency present a case that was considerably less complicated than its previous crypto enforcement actions?"
Hall refers to the many SEC actions, such as the one against Bitcoiin (B2G), which have almost always targeted outright fraud cases, with almost total losses on investments.
In fact, Ripple's case looks decidedly different. of the other cases, apparently much more serious, handled in the past by the US government agency that oversees the financial markets.
Hall, however, says that the regulatory status of most crypto assets remains in a gray area which hampers the growth of the broader blockchain sector in the US, and argues that there is a need for greater clarity in the cryptocurrency sector, especially since laws today are based on principles dating back three-quarters of a year. century.
Even the regulatory framework regarding security would not be adequate to deal with assets like XRP, so much so that Hall himself claims that unless there is an agreement, in reality it will not be the SEC that ultimately determines whether or not XRP is a security, but a court.
The consequences of the outcome of the Ripple vs SEC case
The former SEC official also states:
"Introducing these activities with a shoehorn into the securities regulatory apparatus would increase their cost and complexity to the point of being useless, or at least not very competitive with existing alternatives."
Regarding the specific case, you think there would be many other digital assets with simpler use cases than XRP that the SEC could have started with to frame these assets in federal jurisprudence before facing a leviathan like Ripple Labs. It adds that a loss in the case against Ripple could “Epically” Damage SEC Regulatory Efforts on Digital Assets.
Finally, he suggests that the agency take a more nuanced approach to regulating crypto assets, rather than a strict one, and recommends using its capabilities by issuing notices and comments to provide companies with the knowledge they need to comply with regulations.
There is no guarantee that the SEC will accept Hall's suggestions, but such a scenario suggests that the case against Ripple could be long and ultimately complicated.