There have been several controversial cases before, but the world is currently watching the XRP vs. SEC case in the United States. Mount Equity Group Review believes that the lawsuit’s possible long-term impact on the entire Financial Technology sector justifies its international interest. The results of this particular case could make or break the Fintech industry as a whole.

XRP vs. SEC Overview

According to lawyer John Deaton, this particular case is unique because it’s causing an issue with an existing asset years after its release. In 2019, Coinbase Global, Inc. (Coinbase) checked in with the Securities and Exchange Commission (SEC) regarding XRP because they didn’t think it was a security asset.

Back then, the SEC didn’t say anything to persuade Coinbase otherwise. 18 months after listing XRP, the SEC decided that Ripple should have registered XRP even if it had already been in the ecosystem for a while at that point. This post-release correction added to its controversial nature since the SEC usually made this distinction before release.

Mount Equity Group Review finds that Ripple marketed, packaged, and advertised XRP differently from a security asset. If the SEC had sued Ripple for offering and selling unregistered security assets between 2013 to 2017, those transactions would have constituted unregistered securities. That decision would not have been controversial, but instead, after years of being in public exchanges and platforms, the SEC suddenly declared that XRP is a security asset and sued the company for failure to register, among other things.

Usually, the SEC sues individual executives alleging fraud or deceit, misrepresentation, market manipulation, and fact omissions. However, in this case, they acted too late, prompting reactions from professionals all over the Fintech sector.

The Curious Case of the SEC and Association with XRP Rivals

According to the Mount Equity Group Review, while at the SEC, Bill Hinman collected 15 million dollars from his law firm Simpson Thacher & Bartlett, LLP, a member of the Enterprise Ethereum Alliance. Allegedly, Ethereum investors helped Hinman’s speech.

Incidentally, One River makes a one billion dollar bet on Ethereum and Bitcoin; Jay Clayton brings a case against XRP just as he’s resigning, and he works for One River less than ten weeks after. The plot thickens when you learn that Clayton’s law firm, Sullivan and Cromwell, represents ConsenSys and Joe Lubin, Ethereum co-founder. The firm brokered a deal between ConsenSys and JP Morgan for Quorum, JP Morgan’s coin, which is a direct XRP competitor.

According to John Deaton, this case harmed thousands of XRP holders, so he’s confident that there will be an investigation to look into these things at some point. Someone can officially decide whether or not there was criminality involved.

Can You Sue the SEC?

It’s tough because anybody planning to sue the SEC has to provide a heads up, giving them six months from the notice to the actual lawsuit. However, the SEC has qualified immunity, meaning that if an official makes a mistake while he’s acting in the ordinary course of his job, you can’t sue him. Therefore, people filing a lawsuit against an SEC official should provide irrefutable proof that the circumstances are beyond the standard approach of the job.

Bottomline

The XRP vs. SEC case has certainly evoked several reactions from the Fintech industry. According to sources, some people can’t convert their XRP to Bitcoin, Ether, or US dollars, and frozen until the outcome of this case. Some people believe the SEC operates on conflict of interest, while others think countries should regulate cryptocurrencies like XRP. Whichever side of the fence you’re on, you can learn many things from this case.

Looking For A Broker For Forex Trading? Here’s Some Beginner Tips

Forex brokers are a key element in trading the forex market. A forex broker is an organisation that offers trading services. He/she makes it possible to trade on the forex market. A good forex broker is a crucial step in your trading journey. But what should you look out for in a forex broker? Starters should look for a broker offering low spreads, demo accounts and easy withdrawal and deposit procedures. As there are many manipulators out there, it is important for beginners to take the time to thoroughly review the broker before making a decision.Read More

Best Brokers for Forex Trading & Their Reviews:

A forex broker is responsible for buying, selling, and speculating currencies for trader’s accounts. A broker who is a good choice will try to reduce trader costs by offering the best solutions. The fees that traders pay include commission and other costs. The margin levels are also important for traders to protect their accounts.

Margin trading refers to making a good faith deposit to a broker chosen by the trader so that they can open new positions. As many brokers require low margin requirements, this allows traders to begin with a lower deposit. Margin isn’t a fee or cost, it’s an amount that is put aside to trade. For newbies, it is important to take the time to analyse and understand market sentiment. The margin amount is determined by the broker and can have many consequences. A margin account is essentially borrowing to increase a position’s size. It is often done to increase the returns on trading. Traders may be able leverage borrowed money to hold a greater position than they might with their own capital.

In order to be safe, traders who are just starting out should reduce their leverage. Trading is difficult and high leverage could cause traders to lose their capital. This is because leverage can be a double-edged sword. It can help traders increase their profits but can also magnify their losses. The margin call level occurs when the margin level reaches a certain threshold or level. This means that trader’s positions can be forced to close or liquidated. Traders should be familiar with the margin requirements before placing any orders. In this case, stop loss orders and trailing stops can be of great help. The broker can initiate legal actions against traders if traders fail to comply with their margin trading agreement. This is why it is so important to fully understand the implications.

Good brokers are able to communicate with their clients and offer different accounts to suit their trading needs. A broker that is attentive to trader needs and works with them to achieve them is the best for beginners. He focuses on helping them reach their goals. They can also help protect traders’ accounts from a negative balance. Traders can talk to their mentors and account managers about any questions they may have when it comes to broker selection.

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