Members of the XRP community are beginning to weigh in on the possible outcomes if the lawsuit between the U.S. SEC and Ripple ends negatively for the San Francisco-headquartered cross-border payment firm.
Attorney Jeremy Hogan, a partner at Hogan & Hogan law firm, implied that things may not go down well for XRP holders in a scenario where the Gary Gensler-led SEC wins the case. Notably, he estimated that XRP would lose 25% of its current utility if it is, perhaps, declared a security by Judge Analisa Torres as the case proceeds.
This he said in response to a Twitter discussion started by Michelle Nightengale, the CEO of Global Institute of Wellness Entrepreneurs. Michelle wrote, “Playing devil’s advocate: Anyone know what realistically happens if Judge Torres actually deems XRP to be a security? Brad Garlinghouse already said they’d move abroad. So what would be the scenario for XRP holders?”
In response, the renowned lawyer who closely follows the Ripple-SEC wrote, “the U.S. accounts for 25% of world economic activity so, as a rough guesstimate, XRP would 25% of its utility.”
The U.S. accounts for 25% of world economic activity so, as a rough guesstimate, XRP would 25% of its utility. ?
— Jeremy Hogan (@attorneyjeremy1) January 9, 2023
For more clarity, a crypto journalist named CryptoScribe asked, “Xrp would what? Can you make it clearer? Thank you.” “He left out the word “lose.” He’s saying XRP would lose 25% of its utility,” Michelle Nightengale expanded.
He left out the word “lose.” He’s saying $XRP would lose 25% of it’s utility.
— Michelle Nightengale 🇺🇸 (@BoostBizOnline) January 10, 2023
Related: Attorney John Deaton Predicts a Court Ruling in XRP Lawsuit, States Why Settlement is Unlikely
Recall that in an earlier report, Attorney Jeremy Hogan stressed that it is almost impossible for the SEC to win its securities law violation case against the two Ripple executives Brad Garlinghouse and Chris Larsen even if XRP is classified as a security by the ruling Court.
The Ripple-SEC case, described as the biggest crypto tussle of the century, is now over two years long, counting from December 2020 when the United States securities watchdog initiated the suit. According to Ripple CEO Brad Garlinghouse, if the SEC wins, Ripple would move its cross-border payment solutions away from the United States.
However, the Garlinghouse, John Deaton, and a host of many other XRP proponents are confident the SEC would lose to Ripple. Speaking on when the XRP lawsuit would end, Garlinghpuse noted that making the prediction is a hard nut to crack, citing that the SEC case could linger till the first half of 2023.
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