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Who will win the SEC's lawsuit against Ripple Labs?

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<body><h2><a class="wiki-img" href="/mediadb/image/20da38eeae5d49a0b3b7208259ee1e81/"><img alt="Ripple Logo - Copyright: Ripple Labs Inc." height="150" src="/media/displays/20da38eeae5d49a0b3b7208259ee1e81/wiki_medium.png" width="150"/></a>The complaint</h2>
<p>On 22 December 2020, the United States Securities and Exchange Commission filed a complaint against</p>
<ol>
<li>Ripple Lab Inc.;</li>
<li>Christian Larsen, the company's co-founder, executive chairman of its board, and former CEO; and</li>
<li>Bradley Garlinghouse, the company's current CEO.</li>
</ol>
<p>The SEC alleges that they sold a "digital assets security" without registering this sale with the SEC. The question shall be judged according to the outcome of the first court judgement, irrespective of appeals.</p>
<h3>Hubertus's comment</h3>
<p>These unfolding events are a good reminder why<a href="https://en.wikipedia.org/wiki/Satoshi_Nakamoto" target="_blank"> Satoshi Nakamoto</a> chose to remain anonymous. We must remember that each and every centralised non-sovereign digital money before bitcoin failed or was brought down.</p>
<p>The SEC's choice of term <strong>"digital assets security</strong>" for its allegation is fuzzy, to say the least. A "security" is something entirely different to a "digital asset". Now, mined bitcoin is definitely a digital asset: nobody in the decentralised core bitcoin acivity promises anybody anything. Mind, I am not talking about other activities in the bitcoin ecosystem, just bitcoin core.</p>
<p>Even without checking the detailed asset vs. security issue for XRP, one thing is clear: irrespective whether Ripple prevails, reputational and economic fallout for the company and its executives will still be enormous. Severeal <a href="https://dailyhodl.com/2021/01/02/26-crypto-platforms-delisting-xrp-in-wake-of-secs-ripple-lawsuit/" target="_blank">crypo exchanges have already delisted Ripple</a> and a <a href="https://coingeek.com/class-action-alleges-coinbase-acted-unlawfully-and-fraudulently-in-listing-xrp/" target="_blank">class action suit has been initiated</a> in next to no time.</p>
<p>PS: Elon Musk's little fallout with the SEC is not comparable because Musk's cars have tangible value whereas a money's value depends on its acceptance. Such acceptance currently still requires ties into the ifat money system. The bitcoin community must put more effort into cutting those ties.</p>
<h2>Background material</h2>
<ul style="margin-left:20px; margin-right:0px">
<li><a href="https://www.sec.gov/litigation/complaints/2020/comp-pr2020-338.pdf" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font-family: inherit; font-style: inherit; font-variant-caps: inherit; font-weight: inherit; font-stretch: inherit; line-height: inherit; font-size: 13px; vertical-align: baseline; background-color: transparent; color: rgb(86, 43, 151); text-decoration: none; word-break: break-word; background-position: initial initial; background-repeat: initial initial;">SEC Complaint</a> (Original)</li>
<li><a href="https://www.sec.gov/news/press-release/2020-338" style="box-sizing: border-box; margin: inherit; padding: 0px; border: 0px; font-family: Helvetica, sans-serif; font-style: normal; font-variant-caps: normal; font-weight: normal; font-stretch: inherit; line-height: inherit; font-size: 12px; vertical-align: baseline; background-color: transparent; color: rgb(86, 43, 151); text-decoration: none; word-break: break-word; word-wrap: break-word; overflow-wrap: break-word; display: inline; letter-spacing: normal; orphans: auto; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; background-position: initial initial; background-repeat: initial initial;" target="_blank">"SEC Charges Ripple and Two Executives with Conducting $1.3 Billion Unregistered Securities Offering",</a> SEC PR Website (22 Dec 2020)</li>
</ul>
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