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We asked Google Bard if Ripple will win the SEC case; Here’s the answer

We asked Google Bard if Ripple will win the SEC case; Here’s the answer

As the summary judgment approaches in the Ripple and Securities Exchange Commission (SEC) case, attention is directed toward the potential outcome. The result remains uncertain, as experts offer projections of a Ripple or SEC victory, while some speculate a settlement may be reached. 

Nevertheless, a section of the crypto community remains optimistic about a Ripple triumph, citing the company’s previous successes during the hearings. To gain further insight, Finbold sought the opinion of Google’s generative artificial intelligence (AI) platform, Bard, with the question: “Will Ripple emerge victorious in the SEC case?”

The tool initially acknowledged the difficulty in definitively predicting Ripple’s potential victory despite their successes during the hearings. However, Bard recognized the strength of Ripple’s arguments thus far and acknowledged that a favorable outcome would be significant for the crypto community. 

“It is difficult to say with certainty whether Ripple will win the SEC case. However, Ripple has made some strong arguments and has won several important victories so far. If the judge rules in Ripple’s favor, it could be a major victory for the cryptocurrency industry,” Bard said.

Additionally, Bard highlighted three key factors influencing a potential Ripple win. 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 judge’s response to the SEC’s handling of the case, particularly regarding the use of evidence obtained after Hinman’s speech.

Factors likely to secure Ripple victory 

Bard specifically identified crucial factors that could secure a Ripple victory in the ongoing case. One key argument put forth by Ripple is that XRP should not be considered a security since it does not meet the criteria of an investment contract under the Howey Test. This test necessitates an investment of money in a common enterprise with an expectation of profits derived from the efforts of others. Ripple contends that XRP fails to satisfy all these conditions.

Furthermore, Ripple has asserted that the SEC’s lawsuit aims to hinder innovation within the cryptocurrency industry. They argue that applying outdated securities laws to a new technological landscape could impede progress and innovation in the crypto sphere.

The tool added that the company’s victory could depend on its significant successes in the case thus far. The tool cited instances, such as the unsealing of the Hinman speech. In the speech, Hinman stated that cryptocurrencies like Ethereum (ETH) should not be classified as securities. Additionally, the judge ruled that the SEC could not utilize evidence from an internal SEC memo written after Hinman’s speech.

SEC’s possible win 

Bard also highlighted the potential for Ripple to face a negative outcome in the case, considering certain factors. Notably, the SEC has extensive experience in regulating securities, spanning over 80 years, and has considerable resources. 

The SEC has filed a motion requesting Ripple to produce documents and is determined to pursue the case to its conclusion. Bard noted that the SEC also presents a strong case, arguing that XRP qualifies as a security due to its nature as an investment contract. Furthermore, the SEC alleges Ripple’s actions violated securities laws and emphasizes its readiness to proceed to trial. 

To recap, the SEC filed a lawsuit against Ripple, accusing the firm of selling unregistered securities in the form of XRP tokens and violating regulatory laws. In light of this, Bard acknowledged that the case’s outcome hinges on the judge overseeing the proceedings.

With the date for the summary judgment still unknown, anticipation is building for a significant moment on June 13 when the documents related to Hinman are set to be unsealed. 

Leading up to this event, XRP has responded favorably, experiencing notable price surges in recent days. Within a week, the token has witnessed a substantial inflow of capital, surpassing $2.5 billion in market cap and currently trading at $0.53. As reported by Finbold, Bard had predicted XRP is likely to trade at $0.58 by the end of 2023.

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