While consulting the XRP community on the legal battle between Ripple and the United States Securities and Exchange Commission (SEC), researcher Leonidaz Hadjiloizou suggested that one of the names is disadvantaged, aside from Ripple’s native token and its company, XLM and Stellar may also be affected.
XLM may get in trouble if XRP is deemed a security
If the SEC wins and XRP is deemed a security, then Stellar co-founder and former CTO Jed McCaleb and the XLM token, which was created as a rival to Ripple, will be in trouble. If the court rules that XRP is a security, then McCaleb broke the law by selling these potentially unregistered securities – 9 billion of them that he received from Ripple as compensation as part of the Settlement Agreement.
What is most likely? Jed testifies as an expert witness for Ripple or the SEC?
PS1:If he believed XRP is a security then he broke the law by selling unregistered securities after the lawsuit was filed.
PS2:XLM might get in trouble if XRP is deemed a security on a technical lvl.
— Leonidas (@LeoHadjiloizou) October 16, 2021
Besides, Hadjiloizou said that if XRP were announced as security, XLM could also be in trouble and perhaps face similar accusations.
No legal action has been filed by the SEC against Jed McCaleb, even though he co-founded Ripple Labs with Chris Larsen. The second person and CEO, Brad Garlinghouse, and Ripple Labs are defendants in this SEC legal case against Ripple. Jed sold his 9 billion XRP in installments. However, he has not sold any coins since September 1st.
It seems that this move is also a part of Hadjiloizou’s desire to call for more allies. At the time of writing, the sixth-largest cryptocurrency, XRP, is changing hands at $1.14. As AZCoin News reported, most retail crypto investors in the UK now prefer XRP as their greatest asset. Ripple Labs has recently joined the Digital Pound Foundation to help UK authorities work the CBDC they are developing – digital pound sterling.
Read more:
- U.K.-Based Retail Investors Now Prefer XRP Over Other Cryptocurrencies
- SEC Responded In Opposition To Ripple Motion About Internal Meetings But For No Clearly Reason