In a closely watched court battle that will soon enter its third year, the U.S. Securities and Exchange Commission will prevail over Ripple, claims Gene Hoffman, chief operating officer of blockchain startup Chia Network.
The only outcome is that a federal judge will rule that Ripple's sales of XRP made XRP a security.
— Gene Hoffman hoffmang.xch 🌱 (@hoffmang) December 7, 2022
Federal courts are skeptical enough to understand that most XRP buyers did so in the belief that "the number will go up," according to the former CEO of a publicly traded company, thus it is unlikely that Ripple and its supporters' arguments regarding the alleged utility of the cryptocurrency would succeed.
Hoffman, who has vast experience dealing with the SEC, claims that the organization has not lost a Section 5 lawsuit in many years. Hoffman added that the distinction between XRP and LBRY Credits (LBC) tokens is not particularly significant. peer-to-peer material sharing network The SEC dropped its action against LBRY in November after a judge found that the business had sold LBC to
In a closely watched court battle that will soon enter its third year, the U.S. Securities and Exchange Commission will prevail over Ripple, claims Gene Hoffman, chief operating officer of blockchain startup Chia Network.
Additionally, the Ripple leadership was informed in 2019 by Bill Hinman, the former director of the SEC's section of corporation finance, that their XRP distributions were deemed to be illegal. Hoffman admits that the SEC's handling of Hinman's contentious Ethereum speech from 2018 was "a debacle," but he is confident that it had nothing to do with the current circumstance.
The IT entrepreneur claimed that Ripple misled numerous individuals in the bitcoin business about the reality of the issue. He said that it is sad that so many employees at Ripple deceived so many other individuals about this issue.
Hoffman claims that only a "very small" number of the top 100 bitcoin exchanges are not listed as securities in the US. Nearly two years ago, the SEC started its complaint against Ripple. According to reports, the well-known blockchain company is offering XRP tokens for sale as unregistered securities.
