The Ripple – SEC lawsuit has taken a new twist with the potential to sway the final ruling significantly
As the cryptocurrency industry awaits the summary judgment in the SEC’s lawsuit against Ripple, the case has taken a new turn that can significantly influence the conclusion.
For instance, lawyer Bill Morgan tweeted on April 7 that the SEC’s expert confessed that Bitcoin (BTC) and Ethereum (ETH) prices had been responsible for up to 90% of changes in the value of XRP since mid-2018.
Yet the narrative that Ripple’s large percentage holding of XRP means the XRPL is centralised and XRP is a security persists. /2
— bill morgan (@Belisarius2020) April 7, 2023
If the SEC’s expert premise is correct, he believes Ripple is indirectly allowing the value of XRP to be influenced by Bitcoin and Ethereum price movements. As a result, the SEC aims to demonstrate the assertion by giving proof that Ripple’s pricing announcements affect the value of XRP.
Significantly, Morgan’s theory is supported by the fact that Bitcoin’s value changes affect the prices of most other cryptocurrencies. Morgan also stated that Ripple’s large XRP holdings indicate centralization of the XRP Ledger and that XRP qualifies as security remains.
It’s worth mentioning that the SEC is sued Ripple for selling unregistered securities in the form of XRP coins. Ripple requests the release of Hinman speech documents in which the regulator referred to Bitcoin and Ethereum as securities as part of its defense.
Surprisingly, Morgan agreed with the SEC’s conclusion that investors relied on Ripple’s legal efforts to win the SEC complaint.
According to the attorney, investors should not rely on Ripple’s commercial operations to create profits from XRP but rather on the company’s legal efforts to prevail in the SEC litigation.
“Paradoxically, the SEC may be correct about investors relying on Ripple’s efforts but not because of Ripple’s business efforts or sales of XRP but it’s legal efforts defeating the SEC’s lawsuit should it be successful,” he said.
What would that possibly mean? Ripple would pay a fine (which, by my calculations it could afford) and move forward with its business and now with XRP being the only crypto with “clarity.”
Maybe Coinbase will only be selling Bitcoin and…XRP by next year? 🤔
— Jeremy Hogan (@attorneyjeremy1) April 7, 2023
According to Morgan’s words, Jeremy Hogan, another pro-XRP lawyer, projected an unexpected outcome for the lawsuit. Hogan predicted that if the presiding judge opted to “split the baby,” she may determine that XRP sales after mid-2018 were not securities, as the SEC acknowledges that Ripple’s actions during that period had no impact on the token’s value.
“If the Judge in the Ripple case wanted to ‘split the baby’ (that’s a horrific phrase, isn’t it?), she could rule that sales of XRP since mid-2018 were NOT securities because even the SEC concedes that Ripple’s actions had almost no effect on XRP’s price since that point in time,” he said.
Hogan also mentioned the potential consequences of such a judgment, implying that Ripple may be required to pay a fine while continuing to operate its company. Furthermore, because XRP is the only cryptocurrency with a defined legal position, Hogan believes it may affect the listing of digital assets on multiple trading platforms.
Nonetheless, uncertainty regarding the date for the summary judgment remains. Several legal experts predicted the issue would be decided in the first quarter of 2023.
XRP/USD 4-hour chart | Source: TradingView
Ultimately, the case’s decision is expected to impact the value of XRP and the overall crypto sector. In the weekly chart, XRP trades at $0.5094, up roughly 1%.
Read more:
- Ripple Is The Only Platinum Partner Of Leading Global Event In CBDC Segment
- XRP Price Is Bullish, And All Its Key Metrics Must Be Maintained To Sustain Its Growth
- Here’re The Reasons Why EC V. Ripple Case May End By May 6