Brian Brooks, the former Binance US CEO, who was an acting Comptroller of the Currency, has recently predicted the possible outcome of the XRP lawsuit between Ripple, the San Francisco-based cross-border payment firm, and the United States Securities and Exchange Commission (SEC).
Recall that in December 2020, the SEC filed a lawsuit against Ripple for allegedly selling the digital token XRP as unregistered security for relatively seven years. And the long-standing lawsuit that has kept XRP investors in anticipation is estimated to end by March 2023.
Read Also: Ripple CTO David Schwartz Takes a Dig at Stellar Lumens to Show that XRP is Bigger than XLM
In a recent interview, Brian Brooks said the court is in the position to decide the security status of Ripple’s Initial Coin Offering (ICO) conducted by Ripple of 2013.
Brooks pointed out that what will determine the security status of XRP is how not how it was used 10 years ago. He said according to the SEC, assets can change their nature with time as they grow to achieve utility and decentralization.
Brian Brooks noted:
“Here, the most important issue about the XRP is that there is a difference between the way the asset is distributed and the nature of the asset at a given moment and time. And I think the issue is that whatever happened at the original distribution of the XRP tokens ten years ago, whether that was or was not a security, that is what the courts will decide.
“The question is whether XRP today is security? The answer is that the SEC itself has said that assets can change their nature with time as they achieve utility and decentralization.”
In the course of the conversion, Brooks predicted that settlement will be the last resort for both parties to enable investors to continue trading XRP in the United States as usual.
“I will just make a quick prediction that there is a settlement that will be done somewhere. The settlement has to do with the distribution of the tokens so that existing token holders can continue to trade them and find value in them in ways that they do.”
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HO CHI MINH, Vietnam, 17th November 2024, Chainwire
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