The sports economy Institute has joined the Securities and Exchange Commission’s (SEC) lawsuit against Ripple, becoming the first to publicly support the SEC in its ongoing case against the cryptocurrency company. This move comes on the last day for parties to join the lawsuit, at a time when crypto regulations are receiving negative attention, as well as fear and losses, due to the FTX situation. Ripple is currently embroiled in a lawsuit with the SEC, backed by a number of companies, and is in its final phases, including expert testimony and summary judgment. The sports economy Institute claims that assets that do not generate cash flows should not be characterised as investments.
In the cryptocurrency space, there is some unfortunate news for XRP as the Ripple versus SEC lawsuit is currently the most crucial factor that affects the XRP price. Recently, a party publicly came out to support the SEC for the first time in the entire lawsuit. This move has generated mixed reactions among market watchers.
H2: Parties Joining Lawsuit at Last Minute
The timing of the party’s move is also interesting as it happened on the exact last day for parties to join the lawsuit and give their say. Moreover, this happened soon after a massive amount of fear, uncertainty, and doubt (FUD) in the crypto space, which caused a significant drop in prices. Some market watchers speculate that the FTX platform’s investigation might have triggered this move.
H2: Crypto Market in Turmoil
In the world of cryptocurrency, things are not looking so great at the moment. The FTX situation is wreaking havoc on the entire crypto market, with a potential negative impact on crypto regulations. This is despite the fact that the SEC has not made any statements recently.
H2: Ripple in a Crucial Lawsuit with SEC
For those who do not know, Ripple is currently in a critical lawsuit with the SEC. The lawsuit has three phases, with the first being where parties collect information about each other. In the second phase, parties go to experts and solicit their opinion. In the third and final phase, parties present their argument to the court. Ripple has received a lot of support from various companies during this lawsuit, with 12 or 13 companies so far expressing their support for Ripple.
H2: Ripple’s Amicus Brief
These organizations provided what is known as an amicus brief that showcased how they have utilized XRP and the XRP ledger without the use of Ripple or partly using Ripple. They are trying to show how this lawsuit affects them and how the lawsuit is unfair.
H2: Sports Economy Institute Joins SEC
The negative twist to the case came when the Sports Economy Institute (NSEI), a sports investment consultancy firm, came out in support of the SEC. This was a surprise move as many expected nobody to support the SEC due to its controversial posture.
H2: Reflections on NSEI
NSEI’s statement claimed that they do not operate in the crypto industry and that they foster an environment where financial innovation is respected but only to the extent that it is transparent and serves the public interest. They opined that cryptos are speculative tools, not investments, and shouldn’t be characterized as such.
Overall, the situation is not looking good for Ripple and XRP, with the SEC’s image appearing to be on the rise. Though discouraging, the situation is a reminder of the crypto market’s volatility, which often stirs up controversies and fluctuations. It remains to be seen how this lawsuit will play out and if Ripple can emerge victorious.