In his recent tweet, prominent journalist, blogger and panelist of Fox Business Charles Gasparino imagined what further damage to the crypto industry might follow should Ripple Labs lose the lawsuit against the U.S. securities regulator.
"Nightmare crypto scenario. Scary stuff"
Gasparino shared what he believes to be a "nightmare scenario" for the whole crypto space should Ripple giant lose its case to the SEC spearheaded by chairman Gary Gensler.
This scenario assumes that Ripple loses the lawsuit, first of all. Then, inspired by the victory, Gary Gensler would probably begin attacking Ethereum via court because of its ETH sales. This would cripple two "best technologies in crypto" as the journalist referred to them. The majority of cryptocurrencies in the market, he added, is not backed by anything. As for Bitcoin, Gasparino believes it to be built on outdated technology.
Only "Ripple and Ethereum are real," he added, "scary stuff."
Nightmare #crypto scenario: @Ripple loses @SECGov case. @GaryGensler could, probably will target @ethereum for its sales, crippling the two best technologies in crypto. Most of these coins are back by nothing; @Bitcoin's tech is outdated. Ripple and Etherium are real. Scary stuff— Charles Gasparino (@CGasparino) January 5, 2023
At the moment, all eyes of the XRP community and the crypto space overall are on the lengthy lawsuit between the crypto giant and the regulator. The parties continue to file additional documents, their supporters submit their amicus briefs. Chief of Ripple Bradley Garlinghouse expects the settlement between the parties to happen in the first quarter of 2023.
Gasparino offers reason for Ripple-SEC case
As reported by U.Today earlier, Charles Gasparino offered his 163,800 followers on Twitter to get acquainted with what he believes to be the actual reason that made the SEC regulator go after Ripple and XRP.
The main reason amid the current debacle of the FTX exchange and its founder Sam Bankman-Fried, who has been arrested for defrauding investors, is constant sales of XRP by Ripple despite the SEC's warnings.
He said that Ripple's management was flouting the authority of the regulator as it kept on selling XRP despite notices to stop that were coming from the SEC. As for the second biggest blockchain, Ethereum, Gasparino said that it "did possibly one sale and stopped. No case." He rushed to add that he was not taking sides, just reporting and explaining his take on the case.
According to a recent poll conducted by CryptoLaw founder John Deaton, who closely follows the case, the XRP community expects the case to be settled later this year, rather than it ends in a verdict. More than 15,000 people voted in the poll during the last week of December 2022.