Ripple Labs appears to be seeing the bright side of the ongoing lawsuit with the SEC
Ripple Labs appears to be seeing the bright side of the ongoing lawsuit with the Securities and Exchange Commission (SEC). The case has lingered for almost two years and is reaching a breakthrough point. Additionally, it has uncovered the SEC’s failings and influenced several desperate moves from the agency. As the suit appears to be tilting in favor of Ripple, proponents envision a positive impact on XRP’s price should the firm win.
XRP price outlook has changed from bearish to bullis
Taking to Twitter, one of such proponents, David Gokhshtein—founder of Blockchain media platform, Gokhshtein Media—shared his opinion. Gokhshtein highlighted the importance of the lawsuit on Ripple and XRP’s price movements. “I believe XRP will pop when they settle or win their case against the SEC,” Gokhshtein said on Monday.
The direction of the general markets is the major determinant of most assets’ price movements. Nonetheless, some assets may surge higher than others during a bull run due to unique sentiments within the community. Similarly, unique negative sentiments can push an asset further down in a bear market.
The response of the crypto community to the Ripple case has metamorphosed from bearish to bullish. Following the onset of the lawsuit in December of 2020, XRP experienced a bleak period. Nonetheless, as the case progresses and exposes the SEC’s shortcomings, the community’s outlook has changed.
“I’m pretty sure they (Ripple) will win. I don’t think the SEC really wanted to go to court because they never really had a case,” one proponent said. He highlighted the fact that the SEC has had to “stretch” the definitions of its terms to present a case. According to him, should the SEC win, almost everything could be regarded as securities?
In July, Judge Sarah Netburn accused the SEC of hypocritical conduct. This came after the watchdog cited attorney-client privilege as a tactic to keep documents relating to Hinman’s speech concealed. Judge Netburn noted this as she declined the SEC’s motion.
On July 19, the court ordered the SEC to authenticate comments in 7 videos of interest. The videos contain public comments from SEC officials. The SEC agreed to authenticate the remarks once Ripple provided downloaded versions of the video. On August 3, Ripple requested to serve subpoenas to the two platforms on which the videos are hosted.
Recently, Judge Netburn granted Ripple’s motion to serve said subpoenas. The SEC’s authentication of the remarks should follow shortly. As the case progresses, XRP looks to gain with the rest of the markets but faces constant rejections at the $0.38 price zone. The asset currently trades at $0.374 after facing a decline from its $0.39 peak this month.
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