Crypto companies, including Ripple, Grayscale, and Coinbase, have been facing regulatory challenges from the SEC. These ongoing legal battles have raised questions about the need for clear crypto regulations in the United States. In an interview with Thinking Crypto, Nick Burrafato, Director of Member Investments at Linqto, shared his thoughts on Ripple’s recent victory in a legal battle with the SEC. While the crypto industry awaits regulatory clarity, many believe that these legal victories and developments will eventually lead to crypto regulations
When asked about his thoughts on Ripple’s victory, Burrafato expressed his happiness and stressed that the most crucial outcome was that XRP was declared not to be a security. He highlighted that XRP is now the only digital asset with legal clarity, which opens the door for financial institutions to use On-Demand Liquidity (ODL).
Burrafato also discussed the need for regulatory clarity in the crypto industry and expressed concern about the negative narratives and FUD (fear, uncertainty, doubt) spread by some maximalists from other crypto communities.
He pointed out that Ripple was initially willing to settle if the SEC acknowledged that XRP was not a security, which they eventually got. Burrafato anticipates that the settlement amount will be lower than initially expected.
“Ripple has to finish the legal situation which most of the attorneys are suggesting to us will end in a settlement. 90 percent of all SEC lawsuits end in a settlement. Look Ripple was willing to settle before, they just wanted the SEC to agree that XRP was not a security,” he said.
He added, “Now they got what they wanted, so probably the settlement’s not going to be nearly as high as it originally was going to be, and look, the SEC they have other things to do. So eventually, they’re going to settle this.”
Regarding the future of the crypto industry, Burrafato mentioned the importance of being the first financial institution in the United States to conduct an ODL transaction, believing that it will have a significant impact on the market and attract more attention to Ripple and XRP.