A well-liked crypto analyst is laying out the potential the reason why the U.S. Securities and Change Fee (SEC) went after Ripple with a lawsuit.
In a brand new video, Coin Bureau host Man tells his 2.03 million YouTube subscribers that many different crypto initiatives match the profile of XRP however the SEC focused the seventh-largest cryptocurrency as a result of reality Ripple relies within the US.
“This makes it a lot simpler for the SEC to go after in contrast with different giant crypto initiatives which are based mostly elsewhere. The factor is that the SEC does appear to be going after these too as revealed by its shock lawsuit towards Terra and its Mirror protocol late final yr. The SEC has gone after abroad crypto corporations prior to now as effectively.”
The analyst says that Ripple’s deep pockets are additionally accountable for the lawsuit.
“The second potential cause is that Ripple has some huge cash and the SEC is attempting to safe a large settlement that can make for good headlines and doubtlessly be used to fund the growth of its regulatory operations.”
If this had been true, then the SEC would attempt to maximize settlements by going after lots of the different initiatives with comparable approaches to Ripple. Additionally, they’ve solely issued $2.4 billion in crypto-related fines since 2013, which host Man believes isn’t a lot, all issues thought of.
He says that the third chance is that the SEC wants a precedent to go after different crypto initiatives.
“XRP is among the largest cryptocurrencies on the market and by taking out one of many large guys, it sends a sign to the remainder of the business. The factor is that the SEC doesn’t have the assets to sue so many crypto initiatives.”
The fourth potential cause is “the specter of RippleNet,” the SWIFT fee system different that Ripple created.
“So far as I can inform RippleNet was truly seeing some adoption from monetary establishments in choose areas shortly after it launched in 2019. On condition that the SEC doubtless first engaged Ripple in mid to late 2020, this means that it was a response to the specter of RippleNet fairly than Ripple’s gross sales of XRP. It could additionally clarify why the SEC waited so lengthy to crack down on Ripple – however in fact, this timing might simply be a coincidence.”
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