Ripple Vs SEC : ‘If the SEC Appeals, It Will Backfire,’ Says Former Wealth Manager

The recent court ruling that XRP isn’t a security when sold on digital exchanges has excited the crypto industry. While a victory for Ripple and crypto enthusiasts, the quest for clear crypto regulations continues and the SEC’s potential appeal highlights remaining challenges. The lawsuit highlights the need for better crypto regulations. Whatever happens, it’s expected to push the SEC to provide clearer industry guidelines.

Former Wealth Manager Clive Thompson said in a discussion with Black Swan Capitalist that one of the problems of the digital industry for many years has been the inability to get any guidance out of the SEC.

He said, “The SEC has basically said, ‘We’re not going to tell you what you can and can’t do, and if we don’t like it, we’ll sue you.’”

According to him, SEC’s stubborn behavior stifles innovation because companies and crypto developers will take their projects abroad, where they feel less threatened. 

Clive explained that when Ripple and its creators sold Ripple XRP to exchanges, which was later bought by the public, it wasn’t treated as a security trade. For the industry, Clive highlighted that if institutions follow this guidance, they could sell securities or tokens to exchanges without classifying them as securities, a positive development.

Talking about the lawsuit, Clive said that if the SEC tries to appeal, it will backfire and added that the SEC does not have the ‘qualifications or credibility to regulate the space.’

He also said, Another thing is, Ripple, can now play the same game that they’ve been playing with Ripple all along, which means they can continue to drag it out. And while they’re dragging it out, they can come back in about one year from now if they want to. But guess what, by that time, Ripple was too big. It’s already established a name for itself. It’s global. It’s all around the world.