A recent release suggests that Pantera CEO Dan Morehead may have predicted the impact of a Ripple victory long before it occurred.
Ripple Victory: A “Positive Black Swan”
Speaking at the Bloomberg Invest Panel, held back in June, Morehead was quizzed about what “black swans” the world should expect next, considering that we had just recently experienced a pandemic, complete shutdown, and financial crisis due to the pandemic.
Morehead responded and stated that we already had the “massive shoes drop last year,” most likely in reference to the events surrounding the collapse of prominent crypto firms like FTX, Three Arrows Capital (3AC), Terra, and BlockFi.
However, while Morehead believed the worst had happened, he noted that the regulatory clarity was something that no one in the crypto community was expecting but could happen soon.
He stated how that could happen and highlighted the three-year ongoing lawsuit between the SEC and Ripple Labs as one of the ways.
Considering that “black swan” had been used earlier as a metaphor for disastrous events like the pandemic, Morehead quickly labeled a potential Ripple victory as a “positive black swan.” He emphasized that this could be the next ‘shoe to drop’ and could positively impact the crypto industry.
Interestingly, when Morehead made these comments, he had no idea of the impending victory for Ripple, as he stated that a ruling could go in favor of either party.
About a month later, Judge Analisa Torres ruled in favor of Ripple and said that its secondary XRP sales didn’t constitute an investment contract, nor were programmatic XRP sales classified as a security.
As predicted by Morehead, Ripple’s victory has undoubtedly had immense impacts on XRP and the crypto community in general.
XRP price holds steady above $0.5 | Source: XRPUSD on inew.news
Has Ripple’s Victory Provided Regulatory Clarity?
Morehead had predicted that Ripple’s victory would be one of the ways in which the crypto industry attains regulatory clarity. While this may have not yet been attained, it is obvious that Judge Torres’ ruling has provided some form of guidance, especially to firms like Binance and Coinbase.
The SEC sued both crypto exchanges in June for allegedly offering unregistered securities on their platforms. Additionally, the regulator also tagged tokens like SOL, ADA, MATIC, ATOM, and ALGO as securities.
As such, Ripple’s case provides a precedent for these firms to cite when putting forward their arguments in court.
The SEC recognizes the impact that Judge Torres’ ruling could have against it as it continues to clamp down on the crypto industry, and that is why it moved to file an interlocutory appeal against the ruling.
However, some experts have predicted that the SEC will likely lose when the case is heard upon appeal.