Evernote Founder Predicts US Court Will Not Accept SEC’s Claim That XRP is a Security

The founder of the smart contract platform Evernote (EVRS), based on Ripple’s self-developed public blockchain RippleNet (XRPL), has recently made a statement that has caught the attention of the industry. Scott Chipolina, who is also a lawyer, predicts that the US court will not accept the Securities and Exchange Commission’s (SEC) claim that Ripple (XRP) is a security.

On March 10th, Scott Chipolina took to Twitter to make this prediction, stating that “there is no legal precedent to support the claim that digital assets are securities,” and that the SEC’s intent to label XRP as such is merely a scheme to avoid proving the token’s overseas sales.

Furthermore, Chipolina pointed out that there is no evidence to suggest that Ripple executives, such as Chris Larsen and CEO Brad Garlinghouse, intentionally sold XRP as an unregistered security. He also emphasized that sales of XRP through foreign exchanges do not fall under the jurisdiction of US courts.

While the outcome of the lawsuit remains uncertain, Chipolina’s prediction is expected to fuel the ongoing debate over whether XRP is a security. Ripple’s CEO, Brad Garlinghouse, has reportedly predicted that the lawsuit will be resolved later this year.

The dispute over whether XRP is a security has been ongoing for some time, with the SEC filing a lawsuit against Ripple in December 2020. The SEC alleges that Ripple conducted an unregistered securities offering worth $1.3 billion by selling XRP tokens to investors. Ripple has denied the allegations and has vowed to fight the lawsuit.

The outcome of this lawsuit could have far-reaching implications for the cryptocurrency industry. If XRP is deemed to be a security, it could lead to increased regulatory scrutiny and potential legal action against other cryptocurrencies. On the other hand, if Ripple successfully defends its case, it could set a precedent for other cryptocurrencies and provide more clarity on the regulatory status of digital assets.

Overall, the prediction made by Scott Chipolina has sparked renewed interest in the XRP lawsuit and the broader issue of how digital assets are regulated. It remains to be seen how the US court will rule on the matter, but this case is likely to have significant implications for the future of the cryptocurrency industry.

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