As the Ripple v. SEC case continues to go forward, speculations are circulating around the community about the possibility of the government seizing and purchasing the Ripple-issued XRP tokens that are already on the market and utilizing them for its own purposes, preventing the technology from being used anyplace else.
Crypto Developer Explains Why This Won’t Happen
Matt Hamilton, who was once the director of developer relations at Ripple, has provided an explanation as to why such is not even remotely viable. He claimed that such a plan of action would not be feasible for the primary reason that the value of virtual currencies is attributed to the users of such assets.
This hypothesis is an offshoot of the original conspiracy theory, which has given rise to this conjecture. The seizure of XRP would be unfeasible for at least three different reasons, according to Hamilton’s reasoning.
To begin, the developer emphasizes that XRP is a decentralized cryptocurrency that cannot be frozen without first coercing those who have the key. Secondly, if the government ever needs a digital token for its own purposes, it will find it far simpler to generate one on its own.
Thirdly, if the United States government were to set restrictions on the use of XRP by anybody, it would eliminate any and all uses of the token, and it would be replaced by a simple fork.
Not the first time such a rumor is circulating
Note that this is not the first time Hamilton is debunking such rumors. Just last week, the same rumors were making rounds in the XRP community. At the time, Hamilton said even if the XRP repurchase were to go forward, the price that was established would not be considered reasonable since it is determined exclusively by the rules of the market.
For Hamilton, the question is not whether the government should acquire XRP tokens from the market, but rather what is stopping it from doing so, in order to declare XRP the new official currency.
In December 2020, Ripple was accused of issuing unregistered securities XRP to raise $1.3 billion, marking the beginning of the two-year-long Ripple vs. SEC litigation. Both sides have presented their closing arguments, and now the community is anxiously awaiting a verdict.
