Tuncay YILDIRAN, Member of the Board of Directors of ICRYPEX and Beste Naz Süllü, Director of Research at ICRYPEX; He discussed the process of the Ripple lawsuit, which will take place on February 22, its possible implications for Bitcoin and Ethereum, and the potential consequences of the lawsuit between the SEC and Ripple.
In the program, where many emphasis was placed on the Ripple case, Beste Naz Süllü asked questions and Tuncay Yıldıran answered.
1- The Ripple trial starts on Monday. First of all, what kind of accusation is Ripple facing?
Ripple is facing accusations by the SEC that it was a security and was required to report all its activities to the SEC, but failed to do so. Howey, who 75 years ago was a test of whether a contract was a security or not, could not be made to Ripple. Because whether the value of XRP has been affected by Ripple’s activities has not been fully compared or correlation has not been proven. Just like the XRP McClaeb sells every day doesn’t create volatility in price, nor does a new deal from Ripple affect the value of XRP. In addition, the authorities of the UK, Singapore and Japan issued a non-securities letter for XRP after the SEC filed a lawsuit. Therefore, Ripple has expanded its defense by asserting this dilemma regarding the international recognition of the same instrument.
2- What does the letter sent to the court earlier in the week by both sides regarding their disagreement mean?
A week before the trial began, which is a routine practice, the parties were brought together to discuss whether they would reach a compromise. No agreement came out of this meeting, and a small note said, “There is no agreement yet.” In this legal language, it means that there has been no compromise so far, and that from now on the case will be resolved by the judiciary, not by agreement. If Ripple had accepted and agreed to the deal, that would have meant the SEC would have accepted its accusations. But Ripple has made its own defense. In fact, he was so defensive that the SEC had to act more defensively. After all, the executives at the head of the SEC were not the ones who sued Ripple at the time. At the same time, the Howey test, which was found and applied 75 years ago, is no longer considered valid. For this reason, we can say that Ripple has made its biggest defense by not agreeing.
3- What does the amended criminal complaint that the SEC filed with the court today mean?
The SEC had previously filed a petition with the court accusing Ripple of being “SECURITY.” However, on February 19, he changed the wording in his petition and renewed it to “DIGITAL ASSET SECURITY” . He previously defined Ripple as “VIRTUAL”, or virtual money, and now it defines it as a digital asset.
There is an important issue here: If Ripple wins the case, the 1- Howey test will end and open up new avenues for many ICOs that the SEC has blocked to date, and the crypto ecosystem will record serious growth. 2- It will be understood that Ripple is not a security, and other cryptos faced with this danger will be relieved. 3- The SEC and financial markets, which have been subject to 75 years of tests so far, will be regulated by a regulation that defines “digital” assets, which will again be an important contribution to the crypto ecosystem in terms of regulating and recognizing the market.
4- What should we expect from the first day of the trial? So what kind of news will investors read when the case is heard on Monday?
4B- What kind of projection do you think about the process and course of the case in the absence of agreement?
A hearing called tensip will be held on February 22. In this hearing, the decision will be made “Will the case be opened or not ?” In addition, Ripple has requested the court to write a preliminary letter so that its investors are not victims. Because if the court writes a letter in this hearing, it will be what Ripple wants, and if there are optimistic texts that there are perhaps no securities, this will reassure Ripple investors. Still, by Aug. 16, both sides have to submit the required documents to the court. Therefore, it is not known whether there will be another case after February 22, but if they cannot agree, the earliest date (for the provision of documents) is August 16.
5- Will this case start a new era of regulation for the crypto money markets? Are Ethereum and Bitcoin in danger?
Bitcoin and Ethereum are certainly not in danger. “It is not a security,” the SEC previously issued. his decision is always valid. Ripple is asking the SEC: “If you say that BTC and ETH are not securities, I want to know within my legal rights and I want the contrary claims to be evaluated accordingly.” If the result of this case is decided that it is not a security, THEN THE CRYPTO COINS WILL HAVE GAINED AN IMPORTANT TRUMP CARD AGAINST THE SEC AND IN THIS CASE, THE CRYPTO ECOSYSTEM WILL BREATHE A SIGH OF RELIEF.
Bonus:
Watch our post that answers all the details about the Ripple case!
