Former Director of the Office of the Comptroller of the Currency (OCC) Brian Brooks suggested the possible outcome of the Ripple and SEC litigation.
The lawsuit between Ripple and the US Securities and Exchange Commission (SEC) has become one of the most discussed topics in the cryptocurrency community. In 2020, the regulator sued Ripple, calling XRP unregistered securities.
The agency claims that the ICO conducted by Ripple in 2013 was illegal because it violates the US Securities Act. The legal battle is expected to end by March 2023, but some experts have already begun to make predictions about its possible outcome.
Former OCC director Brian Brooks believes that the parties should reach an agreement so that XRP holders can continue trading in the United States. The main problem with XRP is the difference between the way the crypto asset was distributed and its nature in 2013 and now.
“Whether XRP was a security ten years ago is up to the court to decide. The question is, can XRP be called a security now? The SEC itself has stated that assets can change their nature over time, depending on their usefulness or decentralization,” Brooks said.
The outcome of the case can greatly affect the further attitude of regulators towards the industry, so the SEC continues to defend its position. Last week, the agency refused to provide Ripple with recordings of a speech by former SEC CFO William Hinman on the status of ETH. In July, the SEC demanded that XRP holders with the status of “friends of the court” (amici curiae) be removed from the proceedings.
Source: Bits
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