Crypto Lawyer makes startling prediction as case nears resolution

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Crypto attorney Jesse Hynes believes a resolution to the Ripple-SEC lawsuit may be closer than ever. Hynes shares his perspective on the outcome of the trial.

He makes the startling prediction that the first sales of XRP will have violated securities laws.

Hynes goes on to say that this will set a precedent that the SEC will use to sue many other crypto companies on the grounds that if something is sold for fundraising, an investment contract has been established.

The crypto lawyer believes the court will nevertheless rule that Ripple is no longer violating securities laws with the way it currently conducts sales.

The biggest unanswered concern for him is whether the court will decide to answer the question of whether XRP is a security in itself, as well as how to handle early sales if they are considered securities. However, he fears that the court will not rule on this point.

He points out that the SEC has been pressing this issue with its recent assertions, so the court might feel pressure to rule that way.

Hynes thinks the only logical outcome would be that XRP itself cannot be an investment contract if the court issues a ruling on the status of XRP in the future.

Moreover, he believes that the fair notice defense will only be relevant if it is determined, strangely, that the XRP asset is an investment contract.

Ripple’s claim that there was no fair notice is very strong. However, this really only benefits Ripple, not the users.

Hynes says he just doesn’t see a court deciding that the XRP asset is a security.

Other views on the Ripple-SEC result

Matt Hamilton, former Director of Developer Relations at Ripple, believes that the outcome of the Ripple-SEC lawsuit may not be anticipated due to the complexity of US regulatory and legal systems.

Hamilton noted that even if Ripple is correct, the SEC might still be able to win the litigation.

The former director of Ripple spoke about the evidence recently uncovered by John Deaton, the founder of CryptoLaw, that internal SEC communications may show that it is reasonable to assume that XRP does not meet all the requirements of the Howey test. and cannot be considered a security.

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