TL;DR
- Jim Cramer suggested the SEC has lost its case against Ripple, sparking mixed reactions due to his past inaccurate crypto predictions.
- The lawsuit started in December 2020 over unregistered securities allegations, with the company securing partial court wins in 2023, potentially impacting XRP’s price volatility.
Mixed Feelings Following Cramer’s Claim
Earlier this week, the popular American TV personality Jim Cramer participated in a discussion with the US SEC’s Chairman, Gary Gensler. They touched upon numerous topics, including the ongoing legal battle between the regulator and Ripple.
According to Cramer, the agency has already lost the case. His comments went viral on social media platforms such as X, causing controversial debates among the XRP army.
JIM CRAMER SITS FACE TO FACE WITH GARY GENSLER ON LIVE TV AND TELLS HIM THE SEC LOST THE CASE AGAINST RIPPLE$XRP pic.twitter.com/f7huaCBlXE
— Crypto Assets Guy (@cryptoassetsguy) June 5, 2024
Some viewed Cramer’s stance as a positive sign that Ripple will emerge victorious in the lawsuit. Many others, though, reminded about his incorrect crypto predictions in the past, meaning the opposite scenario could be in the cards.
In December 2022, Cramer advised individuals to cash out their “awful” crypto positions, arguing it’s never too late to exit the ecosystem. Recall that BTC has exploded by over 300% since then.
On another occasion, at the beginning of 2022, he envisioned the end of a market correction that reigned at that time, suggesting people should increase their exposure to digital assets. Those who have been following the industry for the past few years must be aware that 2022 was devastating for the sector, witnessing severe catastrophes such as the Terra crash and the FTX meltdown.
In 2023, the market saw the launch of an exchange-traded fund that bet against tips from Cramer. Numerous X users noted that product, hoping a win for the SEC won’t follow his claims. It is worth noting that the ETF was closed and liquidated at the beginning of this year.
How’s The Lawsuit Going?
The legal spat started in December 2020 when the SEC accused Ripple and some of its executives of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP. The case witnessed countless developments in the following years before reaching its trial phase in April 2024.
Some argue that the watchdog is the underdog because of Ripple’s three partial court wins secured throughout 2023. XRP’s price reacted positively after each victory, meaning enhanced volatility could occur again after the eventual resolution of the lawsuit.
Those willing to learn more about the case’s specifics and its potential impact on the asset’s value, feel free to take a look at our dedicated video below:
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