Ripple Vs. SEC: What’s at Stake and What Could Happen if They Lose?

• Fox Business journalist Charles Gasparino shared his thoughts on the worst-case scenario if Ripple loses to the SEC in a tweet.
• He believes that if Ripple is unsuccessful in their legal challenge, SEC head Gary Gensler would target Ethereum for its sales, potentially crippling two of the most promising cryptographic systems.
• He raised the question of why the SEC is giving more attention to the XRP case than the FTX case.

The United States Securities and Exchange Commission (SEC) has been focusing heavily on its legal battle against Ripple, with the expectation of a summary judgment being made soon. This has left many in the cryptocurrency community hoping that Ripple will prevail in the case, however, there is still the possibility that the SEC could win. Fox Business journalist Charles Gasparino recently shared his thoughts on the worst-case scenario if Ripple were to lose their case against the SEC in a tweet posted on January 5, 2023.

Gasparino began by stating that if Ripple is unsuccessful in their legal challenge, SEC head Gary Gensler would very certainly initiate an assault on Ethereum due to the cryptocurrency’s sales. This, according to the reporter, would have the potential to render two of the most promising cryptographic systems useless. He went on to say that the majority of cryptocurrencies now available on the market are not backed by anything, making the technologies from Ripple and Ethereum crucial.

Despite Gasparino saying he’s reviewing the Ripple vs. SEC case in detail, he questioned why the commission was giving more attention to the XRP case than the FTX case. This is a valid point to raise, as there is no clear indication as to why the two cases are being treated differently by the SEC.

The outcome of the Ripple vs. SEC case is yet to be determined, however, it is clear that the potential consequences of a Ripple loss could be catastrophic for the world of cryptocurrency. If Ripple were to lose, it could set a precedent for other cases against cryptocurrency companies, and potentially lead to a ‘domino effect’ of cases against other projects. If Ripple wins, however, it could be a huge victory for the cryptocurrency industry, and could open the door to a more lenient stance from the SEC towards the industry.