In a recent Twitter talk, Ripple CTO David Schwartz and podcaster Jay’V discussed the definition of XRP as a commodity. The conversation began with a tweet from lawyer Bill Morgan, who expressed his opinion that the matter would ultimately go to a judgment. CEO of Ripple, Brad Garlinghouse, previously stated that he is confident in the law and the facts surrounding the case.
However, Jay’V argued that it is unlikely that the SEC would settle and allow Ripple to continue with their current business model. He also expressed concern that if Ripple is able to continue “with no changes,” it would open the door for a plethora of new crypto projects and startups to follow in Ripple’s footsteps.
In response, Schwartz stated that he does not see any problems arising from a ruling that says that selling a commodity with no post-sale obligations is not an “investment contract.” Jay’V acknowledged that Ripple has no legal obligations to XRP holders but argued that XRP has not yet been officially deemed a commodity by the courts.
Schwartz maintained that XRP is a raw good that trades in commerce and that one XRP is treated as equivalent to every other XRP, which he believes meets the definition of a commodity. He added that no part of XRP’s value comes from anyone else’s legal obligations to XRP holders.
However, the ongoing legal battle between Ripple and the SEC over the classification of XRP continues to be a topic of discussion among industry experts, with the outcome of the case likely to have a significant impact on the crypto industry as a whole.
Ripple Ongoing Lawsuit Expected To End By June
As TronWeekly reported previously, Brad Garlinghouse, the CEO of Ripple, mentioned that now that both parties have presented their arguments in the U.S. District Court, a decision in the case could be made as early as June.
In an interview, he stated that while they do not have control over when a judge will make their decision, they anticipate it to be made in 2023 within the next few months, expressing optimism for closure in the near future.
Following this, there is much optimism for Ripple’s XRP. Data from CoinMarketcap shows that XRP is currently trading at $0.4079. The daily chart indicates a 3.73% increase, and a 4.69% increase can be seen on the weekly chart.
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