2023 is the year that Ripple wins its hard-fought $1.3 billion suit with U.S. Securities and Exchange Commission (SEC). More interestingly, it will also be the same year that Gensler steps down as SEC chairman.
This is the prediction of Ben Armstrong, known as BitBoy Crypto on YouTube.
Prediction 1: Ripple Wins SEC Lawsuit In 2023
It is over two years since Ripple, the company which develops the crypto-based cross-border payments protocol, has been fighting the high-profile lawsuit filed by the SEC.
The case pitting Ripple against the American top financial cop is now nearing conclusion, and many crypto onlookers believe the blockchain firm stands a good chance of winning the lawsuit. YouTuber Ben Armstrong, whose videos produced under the moniker BitBoy Crypto have 1.45 million subscribers, has suggested that 2023 will be the year the XRP lawsuit concludes “and the Ripple curse is broken”.
The SEC charged Ripple in December 2020 with conducting a $1.3 billion unregistered securities offering when the company sold the XRP cryptocurrency to raise capital for its business. The crux of the case is whether the token passes the Howey Test, established in 1946, which determines when assets meet the criteria for being considered investment contracts under U.S. Federal law. A judge could soon give the answer to the question of whether XRP is an unlicensed security. Billions of dollars are riding on the ultimate answer.
As for BitBoy Crypto, Ripple is set to win the closely watched courtroom battle.
Prediction 2: Gary Gensler Steps Down
The SEC has long been criticized for consistently lacking clarity regarding its approach and unwillingness to provide useful insight. The securities watchdog has also raised eyebrows in the cryptosphere over its dealings with Ethereum, the market’s second-largest cryptocurrency.
In 2018, a senior official at the agency gave a historic speech saying the sale of ETH tokens did not constitute a securities breach because the project was “sufficiently decentralized.”
Gary Gensler, the agency’s chairman, has posited several times his view that most crypto assets are securities, with the exception of bitcoin, which is a commodity.
Like many Ripple faithfuls, Brian Armstrong wants Gensler to bow out. In fact, he broadly predicted that the SEC boss would be forced to resign this year, possibly after Ripple wins the case.