According to the Daily News on the 23rd (local time), he revealed through his YouTube channel that the SEC’s action could have a significant impact in deciding what the SEC considers as securities in the future.
Hoskinson explained that this case expands the due diligence burden on cryptocurrency exchanges, allowing exchanges to take a more conservative stance when listing new tokens in the future or to more carefully evaluate their existing portfolio.
IOHK Chief Executive Officer also pointed out that it is very unusual for the SEC to take this action in the current situation, ahead of current chairman Jay Clayton’s resignation. He predicted that in general, the resigning chairman would not leave big homework for his successor, and that this lawsuit would take more than a year.
Meanwhile, concerns have also been raised that if the SEC wins the SEC and the Ripple lawsuit and XRP is recognized as a securities, the trading space of the Ripple cryptocurrency XRP may disappear.
According to CoinDesk, most cryptocurrency exchanges currently do not have licenses to trade securities. Therefore, if the SEC wins Ripple in an upcoming lawsuit, exchanges that will continue to list XRP may have to register with the SEC as a stock exchange.
“Many cryptocurrency exchanges will have to delist XRP,” said Mesari research analyst Ryan Watkins, and according to such a scenario, the XRP price will be hit hard.
It is reported that some cryptocurrency exchanges, such as OSL, Big Sea, and Cross Tower, have already decided to delist or temporarily suspend XRP.
*Image source: YouTube (Charles Hoskinson, Chief Executive Officer of IOHK)