Ripple’s ongoing legal dispute with the United States Securities and Exchange Commission is undoubtedly one of the most important lawsuits for the cryptocurrency industry, and it’s gone through some serious developments.
Its outcome is likely to have an impact on the industry as it could shape the country’s stance towards cryptocurrencies, setting an important precedent. But as of now, that seems far off into the future.
In any case, we decided to ask the popular AI-based chatbot – ChatGPT – if it thinks that Ripple can win the case.
Ripple v. SEC So Far
The most important and relatively recent development in the case was the ruling of the presiding judge, Analisa Torres, in July. It determined secondary sales of XRP do not constitute investment contracts. Essentially, this means that the court doesn’t think XRP sold on secondary markets is a security.
This had an immediate impact on the price, which almost doubled in a day. You can find out more details in our short video on the matter here:
More recently, the United States Securities and Exchange Commission has formally appealed the decision, while Ripple opposed the appeal.
The case is turning into one of the company’s largest expenses, with CEO Brad Garlinghouse recently saying that the legal bill reached $200 million.
ChatGPT: Can Ripple Win?
The popular AI-based chatbot outlined multiple considerations to keep in mind when assessing the potential outcomes of the case between Ripple and the SEC.
It said that legal precedents are likely to have an impact:
The case could also be influenced by legal precedents set in other cryptocurrency-related lawsuits. Past decisions, however, have been mixed, and the regulatory landscape for cryptocurrencies is still in a flux.
Interestingly enough, ChatGPT also said that there’s also a possibility of a settlement:
There is always a possibility that Ripple and the SEC could reach a settlement before the case concludes, which would avoid a final judicial decision on the matter.
On that matter, Marc Fagel – a former SEC Regional Director, chipped in on a discussion of a potential settlement, saying that the only reason the SEC would be interested in a settlement would be if the remaining claims against the individual are high risk.