• Scott Chamberlain – a former US lawyer and co-founder of EvernodeXRPL – suggests that the main obstacle that stops XRP’s price from surging is the SEC’s claim that the token classifies as security.
• Ripple – the entity which issues the coin – has maintained that XRP should be treated as a commodity.
• The legal battle between Ripple and the SEC started in 2020 when the watchdog accused the blockchain organization of raising substantial funds through the sale of XRP tokens.
What is Holding Back XRP’s Price?
Scott Chamberlain, former US lawyer and co-founder of EvernodeXRPL claims that the main obstacle preventing XRP’s price from rising is due to the U.S SEC’s claim that it classifies as a security. On one hand, Ripple -the issuer of XRP- maintains its stand that it should be treated as a commodity.
The Legal Battle Between Ripple and The SEC
In 2020, The Securities Exchange Commission (SEC) filed a lawsuit against Ripple accusing them of raising $1 billion worth in assets through selling XRP tokens in 2013 without following applicable regulations for securities offerings. Fredo Ayala, financial expert claims up to 5 million people are depending on this lawsuit since they have invested in XRP expecting possible price expansion.
Chamberlain’s View on The Matter
Chamberlain claims if it was only alleged by SEC that Ripple sold its assets as part of an Investment Contract then there would be no threat or case because it would have been settled long ago given there wouldn’t be any price suppression either.
SEC Allegations Against Ripple
The allegations made by SEC against Ripple states that they raised substantial funds through selling unregistered securities which violates United States federal law since it wasn’t registered with them nor had any exemption from such registration requirements including filing formal disclosures to investors regarding their product within required timeframes before launching their offering into public market space.
To conclude, Scott Chamberlains believes if only alleged by SEC regarding Investment Contracts then there would be no threat or case against ripple thus leading to possible price expansion for those who have invested in XRP tokens.