The CEO of cryptocurrency firm Chia Network, Gene Hoffman, announced on Twitter today that he expects it Ripple (XRP) the infamous lawsuit with the United States Securities and Exchange Commission (SEC) will lose. According to him, it is almost inevitable that the court will rule that XRP is a safety, or effect, it is.
Ripple lawsuit
The lawsuit between Ripple and the SEC has been going on for almost two years and the judge has not yet ruled. The central question in the case is whether the XRP tokens that Ripple had sold in the past can be seen as securities.
The SEC believes that Ripple sold the XRP tokens as such, without having the necessary licenses. Ripple denies that XRP can be a security.
CEO Hoffman believes the SEC has it right here. According to him, Ripple’s arguments will not be enough to convince the judge in the case that they are right. This would obviously mean that Ripple loses the case with all the consequences that entails.
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
“The only result is that a federal judge will rule that Ripple’s sale of XRP made XRP a security.”
Is XRP a security?
Plus, the SEC hasn’t had one like it in decades section 5 lost case, says Hoffman. It was also recently announced that another crypto project, LBRY, has filed a separate lawsuit lost to the SEC. Subsequently, the LBRY token was designated as security. According to Hoffman, this case is very similar to the ongoing lawsuit between Ripple and the SEC. All in all, Hoffman doesn’t see a rosy chance for Ripple. Although Hoffman obviously only expresses his opinion, he makes a different sound than the crypto community we are used to.
We may soon know what the final outcome of the lawsuit will be. It seems very likely that the final phase of the case has arrived. So did the Ripple camp this week their last defence presented to the court. It is not known when the court will issue a ruling.
