Crypto lawyer Stephen Palley thinks Ripple faces an overarching problem with XRP in terms of its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC).
The SEC alleges Ripple illegally sold XRP as an unregistered security upon its launch and maintains that the digital asset is a security to this day. The SEC also filed actions against Brad Garlinghouse, Ripple’s chief executive, and Chris Larsen, the company’s co-founder.
“The problem with XRP is that no matter how it’s spun it will always be reducible to a centralized thing with little credible utility and large cash payouts to the small number of people who created, control the thing, and keep getting rich from it. Clarence Darrow couldn’t fix that.
This is why they will lose if this goes into dispositive motions, trial or appeal.”
Palley doubts Ripple will prevail and believes the payments company will ultimately settle.
“This is a prediction. I guess I could be