As the summary judgment draws near in the Ripple and the Securities Exchange Commission (SEC) case, attention turns to the potential outcome. While experts predict a Ripple or SEC victory, the outcome remains uncertain as some predict a compromise could be reached. In this regard, Google’s artificial intelligence (AI) platform Bard was consulted and the following question was asked: “Will Ripple win the SEC case?”
“Bard” initially acknowledged the difficulty of accurately predicting Ripple’s potential victory, despite its successes during the hearings. However, Bard acknowledged the strength of Ripple’s arguments so far and predicted that a positive outcome would be significant for the crypto community.
Bard also highlighted three key factors that will affect a possible victory for Ripple. These include the judge’s interpretation of the Howey Test, which determines whether an investment qualifies as a security, the judge’s assessment of Ripple’s argument that XRP is not a security, and the SEC’s use of evidence, particularly after Hinman’s speech. the judge’s response to the way he handled the case.
Bard specifically identified key factors that could secure Ripple’s victory in the ongoing litigation. One of the main arguments put forward by Ripple was that XRP should not be considered a security as it did not meet the criteria for an investment contract under the Howey Test. This test requires that money be invested in a joint venture in anticipation of profits from the efforts of others. Ripple claims that XRP does not meet all these conditions. Furthermore, Ripple claimed that the SEC’s lawsuit was aimed at hindering innovation in the cryptocurrency industry. They argue that applying legacy securities laws to a new technological environment could hinder progress and innovation in the crypto space.
Bard added that the company’s victory may depend on the significant successes it has had on the case so far. Bard cited examples such as unsealing the Hinman speech. In the speech, Hinman stated that cryptocurrencies such as Ethereum (ETH) should not be classified as securities. In addition, the judge ruled that the SEC could not use evidence from an internal SEC memo written after Hinman’s speech.
Bard also highlighted the potential for Ripple to face a negative outcome in the case given certain factors. In particular, he noted that the SEC has extensive experience and significant resources in regulating securities for over 80 years. The SEC has filed a petition requesting Ripple to produce the document and is determined to follow the case to the end. Bard noted that the SEC presented a strong case, arguing that XRP qualifies as a security because it is an investment contract. Furthermore, the SEC alleges that Ripple’s actions violate securities laws and emphasizes that it is ready to proceed with the lawsuit.