In recent days, a heated discussion has erupted between prominent journalist and Fox Business host Charles Gasparino and the Ripple/XRP community. Gasparino expressed that the US Securities and Exchange Commission (SEC) had legitimate reasons why they attacked and sued Ripple before FTX.
Even Ripple’s legal counsel Stuart Alderoty took a stand and rejected the arguments, as Bitcoinist reported. Meanwhile, the Fox Business host did clarify that he has no idea who will win the lawsuit. The even accepted that the judge’s comments “initially indicated that he would side with Ripple”, but at the same time, warned that this was before “the whole SBF FTX implosion”.
Ripple Victory is crucial for the entire crypto industry
In his two most recent tweets, Gasparino paints a dark future scenario for the broader crypto market and shared his view on the consequences the industry could face if the SEC wins against Ripple. gasparino wrote via Twitter:
The crypto community sees a bloodbath if the SEC prevails against Ripple in the form of more regulation/oversight that will affect almost every sector, including the exchange business given Gary Gensler’s desire to force registration of all coins except BTC.
Gasparino is not entirely alone in this opinion either. Even Ripple has expressed in previous statements that the company is fighting not only for itself, but for the entire crypto industry, to avoid excessive regulation by the SEC.
Also worth noting is Gasparino’s latest tweet referring to the largest American crypto exchange. The journalist claims that Coinbase is already developing a plan to survive a regulatory crackdown by the SEC:
Coinbase tells Fox Business that it is developing a plan to survive an SEC regulatory crackdown on digital assets using broker-dealers to trade currencies registered as securities. The move comes as the SEC v Ripple case looms; The SEC victory could force coins other than BTC to register.
What would a bloodbath for the crypto market look like?
The Fox Business presenter does not define what he means by a bloodbath. However, a look at history helps to understand the thesis. When the SEC sued Ripple on December 22, 2020, the price fell 68% in one week.
While Bitcoin and Ethereum are currently 74.74% and 72.62% below their all-time highs, respectively, XRP is 89.31% below its all-time high of $3.40, which was reached on 7 January 2018. Therefore, XRP is showing significant underperformance.
The outcome of the court battle remains razor-edged, and the XRP community of course sees many arguments in favor of a Ripple victory. In a recent blog post, Ripple General Counsel Stuart Alderoty revealed that he expects a positive outcome for the lawsuit in Q2 2023.
At press time, XRP price was trading at $0.3640. With yesterday’s bullish move, XRP was able to break through the key resistance at $0.3560. This opens up the possibility of attacking the next resistance at $0.3740, possibly tomorrow, Thursday, when the December CPI data is released.
XRP price breaches key resistance, 1-day chart | Source: XRPUSD on TradingView.com
Featured Image from iStock, Chart from TradingView.com
This post Crypto Market will see a bloodbath if Ripple loses to the SEC
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