Mr. Huber, an XRP community advocate, and crypto investigator, took to Twitter recently to explore the potential impact of Bill Hinman’s Ethereum (ETH) speech on XRP.
With the legal battle between Ripple and the SEC nearing its conclusion, he emphasized the importance of Judge Torres’ prospective application of Hinman’s analysis to XRP in light of its recent public publication.
According to Mr. Huber, there are two conceivable outcomes from this application. To begin, if Judge Torres concludes that Hinman legitimately excluded Ethereum from securities rules, she will almost certainly apply the same analysis to XRP, implying that the embattled digital asset is not a security, hence not subject to any fines.
Some people act like they don't understand the XRP community why we're not in favor of Hinman's arguments. They can't see how Ripple's Blue Sky argument is many times legally more sound than Hinman's completely arbitrary construct of "decentralization". No post-sale obligations… https://t.co/rrOqqpbLBp
— Mr. Huber🔥🦅🔥 (@Leerzeit) June 26, 2023
Secondly, if Judge Torres decides that Hinman did not legitimately exclude Ethereum (ETH) from securities rules but recognizes that Hinman’s remarks could lead to the idea that XRP is likewise a security, XRP may be regarded as a security, subject to fines. However, in such a case, the absence of fair notice and penalty may be crucial elements.
Mr. Huber’s tweet, in particular, was in response to a crypto enthusiast who questioned the relevance of Hinman’s analysis to the SEC’s case against Ripple. In a subsequent tweet, he explained that the XRP community opposes Hinman’s arguments because Ripple’s position, which focuses on the absence of post-sale commitments, is legally stronger and more provable.
Well: Two things –
If Torres finds Hinman lawfully excluded Ethereum from the securities rule, then she would have to apply Hinman's analysis to XRP as well. And Hinman didn't even consider the size of the holdings or the transparency of them. -> Not sold as Securities, No… https://t.co/pU0ENTzlBl— Mr. Huber🔥🦅🔥 (@Leerzeit) June 26, 2023
Furthermore, the crypto influencer attacked Hinman’s ‘decentralization’ concept as arbitrary and useless thus far. This development could ultimately determine XRP’s classification as a security while the XRP community awaits Judge Torres’ ruling.
Impact of the Legal Battle on the XRP Community
The outcome of the legal dispute between Ripple and the SEC is crucial for the XRP community. If Judge Torres applies Hinman’s approach to XRP and determines that it is not a security, it will be a significant victory for the XRP community, as XRP’s non-security status will be strengthened. Given the reduction in ovulatory uncertainty and the possibility of more liquidity, this could lead to increased XRP adoption and trade.
On the other hand, if Judge Torres determines that XRP is a security and subject to sanctions, the XRP community may suffer. The SEC’s regulations may dampen investor enthusiasm and reduce demand. If this occurs, rival cryptocurrencies may gain an advantage, causing XRP to lose potential market share.
Regardless of the conclusion, the XRP community is keenly interested in the current court struggle since it has the potential to define the cryptocurrency’s destiny. The community, like other crypto aficionados, is eagerly awaiting Judge Torres’ verdict and the potential repercussions it may give.
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