The Ripple XRP digital currency suffered a major setback after the US Securities and Exchange Commission announced at the end of last December a lawsuit against the Ripple Company, stating that Ripple had sold unregistered securities, and that XRP was a security and guarantee and not a cryptocurrency.
For Ripple and the SEC to formally enter into a legal battle, or a trial and hearing session will begin from late February.
What can Ripple do to save the XRP digital currency?
According to Mr. Stephen Paley, a lawyer in the field of blockchain and cryptocurrencies at the law firm, Anderson Kill, the solution before Ripple is to resort and as soon as possible to a settlement with the SEC instead of choosing and betting on a long battle in the courtrooms.
Stephen Paley stated:
The notion that the San Francisco-based Ripple Corporation can succeed in court and succeed in its endeavor to view XRP as both digital currency and by court is illusory.
For XRP to survive, Ripple needs to strike a deal with the Securities and Exchange Commission and not continue the delusion of its ultimate success in the USA Supreme Court.
Paley also referred to the second lawsuit against Ripple by the Tetragon Group filed at the Delaware Chancery this week.
Where the "Tetragon" group filed a complaint against Ripple, requesting it to recover the money it had provided in the C financing round.
Another painful blow to Ripple ... A lawsuit was filed against Ripple by one of its major investors
According to "Bali", the second lawsuit is another type of highly unwanted news for Ripple, and Ripple's response reveals that it was aware that XRP could be a safety currency, and added:
The problem Ripple will face is the amount of information and documents that its opponents possess.