Bloomberg's expert expects a ruling on the Ripple vs. SEC in the coming monthsStein noted that the Ripple case is particularly interesting because it involves a digital asset that has utility, which suggests that the asset is a commodity.
However, the SEC alleges that Ripple was selling XRP tokens as a security, and buyers were treating them as such, hoping that the price of the asset would rise. This creates a complex legal issue that has been the subject of intense litigation.
"So, this is a really interesting case for the whole crypto sector, and I think we may get a decision on the summary judgment motions in the first half of this year," Stein said.
Judge Analisa Torres recently issued a new ruling in the case that included the removal of an important SEC expert witness from testifying. Patrick Doody, who was hired by the impressive regulatory agency to study token buyer expectations, was barred by Judge Torres from testifying in response to Ripple's motion.
Earlier, FOX Business reporter Charles Gasparino said the FTX collapse would be bad for the lawsuit because it casts a shadow over the industry and would force the judge to take a tougher approach to cryptocurrency. We think the collapse of Silvergate and Silicon Valley Bank will only exacerbate this situation.
