Prominent journalist and Fox Business host Charles Gasparino has taken to Twitter to share with the whole crypto community his view on what consequences may befall the cryptocurrency industry, including exchanges, if the U.S. regulator manages to win its case against Ripple Labs.
Here's what he predicts is likely to occur if the SEC prevails over the fintech giant in court. Every coin will be hit, he says, except Bitcoin.
"Crypto community sees a bloodbath"
Gasparino expects that if the SEC manages to beat Ripple's defendants' team in court, this will likely have very negative consequences for the whole crypto space, not only Ripple Labs and XRP.
He assumes that the crypto community will face a "bloodbath." In particular, this means the expansion of strict regulation to every sector of the crypto space, including the business of crypto exchanges that SEC Chairman Gary Gensler may want to implement in that case.
He will force registration for every cryptocurrency, except the leader, Bitcoin, Gasparino believes. This thesis was discussed on Fox Business on Tuesday.
BREAKING: #cryptocommunity sees a bloodbath if @SECGov prevails against @Ripple in the form of more regs/oversight that will impact nearly every sector including the exchange biz given @GaryGensler's desire to force registration of every coin but $BTC. We discuss now @FoxBusiness— Charles Gasparino (@CGasparino) January 10, 2023
In one of his previous tweets recently, Gasparino shared what he called a "nightmare crypto scenario," which he expects to play out in case Ripple takes a beating in court. However, back then, the Fox Business host only stated that Gensler might want to go after Ethereum for its token sales, and thus the SEC would cripple the "two best technologies in crypto." He apparently believes that "only Ripple and Ethereum are real."
As for Bitcoin, he called BTC technology "outdated."
"XRP would lose 25% of its utility"
Recently, attorney Jeremy Hogan, who closely follows the long-running Ripple case against the regulator, shared his take on the abovementioned question too. When asked what may happen to XRP in case the SEC legal team prevails in court, he stated that, in this case, he expects XRP to be deprived of about 25% of its utility.
He believes so because, most likely, the token would be banned in the U.S., and the country provides around 25% of the global economic activity, Hogan specified.
As for Ripple, Brad Garlinghouse stated in an interview in 2021 that, should Ripple lose, it would simply relocate from the U.S. to a more crypto-friendly jurisdiction. At one time, rumors emerged that the fintech behemoth was eyeing moving its headquarters to the UAE.
Overall, Garlinghouse expects the case to be resolved in the first quarter of this year.