OpenAI’s text-based artificial intelligence (AI) tool ChatGPT has become popular due to its capability to respond to questions in a human-like fashion on a wide range of topics, including the legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC).
With this in mind, Finbold asked the ChatGPT chatbot to share expectations on the likely winner of the widely publicized lawsuit in the cryptocurrency sphere, as well as the persuasiveness of the arguments coming from the legal teams of both the regulator and the blockchain company.
What did ChatGPT say?
In response, ChatGPT admitted that it was “difficult to predict” which of the two sides is likely to win the lawsuit focused on the XRP token sold by Ripple “as the outcome will depend on the evidence presented and the arguments made by both sides.”
Having said that, however, the AI chatbot also stressed that “Ripple’s argument that XRP is not a security is likely to be more persuasive,” further explaining that:
“Ripple has argued that XRP is a currency, not a security, and that it is not subject to the same regulations as securities. Ripple has also argued that XRP is decentralized and not controlled by any single entity, which is a key factor in determining whether something is a security or not.”
On top of that, ChatGPT highlighted the blockchain company’s persistent argument that XRP “has been used for years as a currency and not as an investment, which further supports its argument that XRP is not a security.”
Is ChatGPT correct?
Indeed, defense lawyer and popular commentator on the lawsuit, John E. Deaton, has said that the SEC was overstretching its arguments, drawing attention to the Howey analysis it used to proclaim that XRP was a security – the test he referred to as “difficult” to perform for XRP.
He also drew attention to the 3,000 affidavits indicating that the first-time XRP buyers weren’t even aware of Ripple’s existence, as well as that they purchased the token for non-investment reasons, receiving benefits from XRP completely independent of Ripple.
Meanwhile, Ripple CEO Brad Garlinghouse is optimistic about the outcome of the case, both in terms of the judgment itself and its timeline, voicing his expectations that the SEC case would be concluded in 2023, perhaps even in the first half of the year, as Finbold reported.
Elsewhere, Google searches involving the keyword ‘ChatGPT’ have soared in January, with China dominating as the region with the highest search interest in the AI tool, whereas in the United States, it hasn’t yet recorded such a drastic increase in popularity.