Big Trouble for Ripple (XRP)? Jim Cramer tells Gensler that the SEC is already lost

TL;DR

Jim Cramer suggested that the SEC has lost its case against Ripple, prompting mixed reactions due to its inaccurate crypto predictions. The lawsuit began in December 2020 over allegations of unregistered securities, with the company securing partial court victories in 2023, potentially affecting XRP price volatility. Mixed feelings after Cramer’s claim

Earlier this week, popular US TV personality Jim Cramer engaged in a discussion with US SEC Chairman Gary Gensler. They covered numerous topics, including the ongoing legal battle between the regulator and Ripple.

According to Cramer, the agency has already lost the case. His comments went viral on social media platforms like X, sparking controversial debates among the XRP army.

JIM CRAMER SITS FACE TO FACE WITH GARY GENSLER ON LIVE TV AND TELLS HIM HE DID LOSE HIS CASE AGAINST RIPPLE$XRP pic.twitter.com/f7huaCBlXE

— Crypto Assets Guy (@cryptoassetsguy) June 5, 2024

Some saw Cramer’s stance as a positive sign that Ripple will emerge victorious from the lawsuit. Many others, however, recalled their wrong crypto predictions in the past, meaning the opposite scenario could be on the cards.

In December 2022, Cramer advised individuals to exit their “horrible” crypto positions, arguing that it is never too late to exit the ecosystem. Remember BTC has exploded over 300% since then.

On another occasion, in early 2022, he envisioned the end of a market correction prevailing at the time, suggesting that people should increase their exposure to digital assets. Those who have been following the industry over the last few years must be aware that 2022 was devastating for the sector, witnessing major catastrophes such as the fall of Terra and the FTX meltdown.

In 2023, the market saw the launch of an exchange-traded fund that bet against Cramer’s advice. Numerous X users pointed to this product, hoping that a win for the SEC would not follow their claims. It is worth noting that the ETF was closed and liquidated earlier this year.

How is the demand?

The legal dispute began in December 2020 when the SEC accused Ripple and some of its executives of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP. The case witnessed countless developments in the following years before reaching the trial stage in April 2024.

Some argue that the watchdog is the underdog due to Ripple’s three partial court victories secured throughout 2023. XRP’s price reacted positively after each victory, meaning that enhanced volatility could occur again after the final resolution of the lawsuit.

Those who want to learn more about the specifics of the case and its potential impact on asset value, feel free to check out our dedicated video below:

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