David Gohstein: Settlement of SEC-Ripple litigation would be a bad sign for the crypto industry

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Gokhshtein Media founder David Gokhshtein believes that the settlement of the litigation between the SEC and Ripple will be the worst-case scenario for the crypto industry.

Former Republican Congressional Candidateparty David Gokhshtein explained that if Ripple settles the lawsuit filed by the US Securities and Exchange Commission (SEC) and pays a fine, this will have a bad impact on the further development of the industry. 

If the SEC withdraws from this proceedingwinner, it will continue to pursue cryptocurrency companies. If Ripple wins the lawsuit, US lawmakers will oblige the SEC to establish clear rules for oversight of the digital asset market or may involve another agency, for example, the US Commodity Futures Trading Commission (CFTC).

According to Gokhshtein, the industry needs a largea cryptocurrency company that would win a lawsuit rather than settle it. The Gokhshtein Media founder's comments came after Cardano CEO Charles Hoskinson shared rumors that Ripple and the SEC could reach an agreement on December 15, 2022.

“You don't have to be a supporter of XRP, butyou must support Ripple for the company to win its case against the SEC. This will bring clarity to the crypto industry and keep innovation in the US,” Gokhshtein said.

Let us recall that in December 2020 the SEC accusedRipple in conducting an unregistered ICO. The proceedings have been going on for almost two years and are now at the summary trial stage. US Federal Judge Analisa Torres is expected to rule on the case no later than March 31, 2023.

Many industry participants, includingRipple CEO Brad Garlinghouse has repeatedly called on the SEC to develop specific standards that cryptocurrency companies must comply with. However, the agency believes that this is not necessary, since crypto-assets should be regulated similarly to securities. Therefore, Garlinghouse is convinced that it is easier for the Commission to take a regulatory approach rather than go through the enormous work of developing regulatory rules for cryptocurrencies.