Did the Ripple Vs SEC Lawsuit Set XRP Back by 3 Years?! Here’s the Truth

The recent lawsuit brought by the SEC against Ripple regarding the sale of XRP has dealt a significant blow to the trajectory of XRP. What could have been three years of robust growth and adoption has instead transformed into an ongoing legal battle, leaving stakeholders pondering the aftermath of this regulatory clash.

The SEC’s Unseen Blow

John Deaton, founder of CryptolawUS and a prominent lawyer, wasn’t afraid to call out the damage done by the SEC’s misguided crusade against Ripple and XRP. A series of tweets listed the details of the SEC’s actions, pointing out that the lawsuit has hindered three years of adoption for XRP.

Just how long is three years in crypto years? It might as well be a lifetime, considering the pace at which the crypto world evolves.

The Coinbase Connection – So Much for Due Diligence!

Coinbase, a major U.S. cryptocurrency exchange, had been a significant promoter of XRP before the lawsuit. Deaton highlighted how, in 2019, Coinbase meticulously evaluated XRP and determined it was not a security. The company even met with the SEC to discuss the regulatory status of XRP, receiving no objections.

Despite doing everything by the book, the SEC’s subsequent lawsuit against Ripple created a ripple effect that impacted Coinbase’s plans and the broader XRP market.

Regulatory Disarray for MoneyGram

The SEC’s lawsuit had a broader impact, as even companies like MoneyGram, which had begun using XRP for cross-border payments, were affected. Like Coinbase, MoneyGram’s lawyers had determined that XRP was not a security.

The conclusion is clear: various experts across different organizations, including the SEC’s enforcement lawyers, believed that XRP was not a security. But the lawsuit’s filing told a different story.

A Glimpse of What Could Have Been

Deaton’s meticulous analysis raises a thought-provoking question: What might have transpired in terms of XRP adoption over the past three years if the lawsuit had never been initiated?

Could today’s headlines be centered on Coinbase’s collaboration with Ripple, instead of Circle? The trajectory could indeed have diverged significantly. In spite of Ripple’s sustained and noteworthy achievements, there’s no denying that the lawsuit has undeniably curbed XRP’s growth and the broader ecosystem surrounding the XRPLedger.

The astonishing twist lies in the fact that even the SEC’s legal team did not categorize XRP as a security. Allow that fact to truly sink in. The legal entanglement between the SEC and Ripple stands as a compelling case study illustrating regulatory perplexity and overextension.

Read More: Gemini Hits Back at SEC’s ‘Hypocritical’ Allegations, Cites Ripple Case

Can the damage ever be reversed?

Three years – that’s the duration during which the SEC has managed to impede one of the most promising cryptocurrencies in existence. It’s a humbling reminder of the potential consequences when bureaucratic obstacles obstruct progress.