Former Lawyer Reveals Why XRP Price Hasn’t Rebounded
BeInCrypto – Scott Chamberlain, a former US attorney and co-founder of EvernodeXRPL, thinks the main obstacle preventing the XRP price from recovering is the SEC’s statement that it is a security token.
“If they say XRP is an investment contract, then all the problems won’t happen,” Chamberlain said.
The only lawsuit that prevented XRP price from recovering
In a recent Twitter post, Chamberlain opined that XRP’s price repression was not due to “The U.S. Office’s allegations that it sold more than $1 billion in assets in 2013” but simply because of “saying it was securities.” It does not have much effect on price pressure.
“I think the main difference is that the SEC alleges that XRP is a security, so the entire network suffers from this uncertainty. If they say that XRP is part of an investment contract there will be no problem And the price of the asset will recover normally. In addition, the case would have been settled a long time ago.”
— Scott Chamberlain (@scotty2ten) April 6, 2023
Before Chamberlain took action on the social media platform, financial expert Fredo Ayala said that up to 5 million people will be affected by the lawsuit between and the SEC because they invested in XRP because they believe it is. The price can continue to grow.
Ripple believes that its coins are commodities.
The legal battle began in 2020 when a watchdog accused the company of Raise large amounts of capital through token sales. In the form of an unregistered securities offering to investors in 2013.
Ripple executives have repeatedly said over the years that the coin should be viewed as a commodity. Chief technology officer David Schwartz said:
“XRP is a commercially traded commodity, and one XRP is considered to be equivalent to another XRP. That is the definition of “commodity.” No part of the value of XRP comes from the legal obligations of others to XRP holders.”
On the other hand, Gary Gensler – chairman of the SEC – said the only digital asset the agency was willing to classify as a commodity only was bitcoin.
Despite the uncertainty of the outcome of the lawsuit and the lengthy process, But XRP’s valuation is starting to look better. It is currently trading around $0.51, a 34% increase compared to the figure 30 days ago.
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