There is growing support for permanently locking Ripple’s escrow accounts in the ongoing SEC v. Ripple case. Marc Fagel, former regional director of the SEC’s San Francisco office, is one prominent supporter of this notion.
Fagel recently participated in a Twitter conversation in which he agreed with an XRP community member, Jack ‘O, about the upcoming ruling.
Read Also: Ripple Unlocks 1 Billion XRP from Escrow in Routine Procedure As XRP Price Remains Stable
XRP Holder States His Dream Ruling
In a thread of tweets that involved Attorney Jeremy Hogan. Jack ‘O, a self-acclaimed XRP holder, said he believes that the best outcome of the case would be a fine against Ripple for initially selling XRP as a security. He based this on his review of Ripple’s communications, which he thinks show that the company should be penalized.
Jack ‘O also wishes that the majority of the XRP held in Ripple’s escrow accounts be transferred to the SEC and permanently locked away. In return, he proposes that all circulating XRP be declared a commodity in the future. Fagel agreed with Jack ‘O, calling their dream ruling “reasonable enough.”
Sounds reasonable enough.
— Marc Fagel (@Marc_Fagel) July 8, 2023
Fagel’s Take on SEC v. Ripple
Fagel has been vocal about the SEC v. Ripple court case. He recently appeared on the CryptoLaw podcast with pro-XRP lawyers John Deaton and Jeremy Hogan to discuss the implications of William Hinman’s communications in the ongoing dispute.
Fagel, who served as SEC Regional Director for nearly 16 years, expressed frustration with the controversy surrounding Hinman’s controversial speech.
Read Also: Thinking Crypto Podcast Host Gets Eyes On XRP for Bullish Trend Once Ripple Wins Lawsuit
Ripple’s Chances of Winning the SEC Case
Fagel has also commented on other aspects of the SEC v. Ripple case. He believes that the SEC has a stronger case, stating that Ripple violated Section 5 of the Securities Act. However, he remains confident in Ripple’s chances of winning the litigation. Fagel did not elaborate on his reasons for believing in Ripple’s victory.
I think the SEC has the stronger legal argument on whether Ripple violated Section 5. But for various reasons I think Ripple is more likely to win the case (or at least for the impact of the case to be limited).
— Marc Fagel (@Marc_Fagel) July 10, 2023
Read Also: Ripple CTO David Schwartz: Federal Judges Now Share People’s Frustration with the SEC
Implications for the XRP Community
The potential permanent locking of Ripple’s XRP escrow accounts, as advocated by former SEC regional director Marc Fagel, could have far-reaching consequences for the XRP community.
If the majority of the XRP in Ripple’s escrow accounts is handed over to the SEC and locked away for good, it could have an impact on the market’s supply dynamics. This projected decrease in available XRP could create a perception of scarcity, thereby increasing demand for the remaining circulating XRP.
As a result, this event could impact the market price of XRP as well as the overall sentiment within the XRP community. The eventual outcome of the SEC v. Ripple case, however, remains unknown, and its consequences have yet to be fully realized.
Follow us on Twitter, Facebook, Telegram, and Google News
