Will a Ripple Victory in the SEC Lawsuit Kick-Off the Altcoin Season?
The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) may soon come to an end, with a ruling expected within the next few weeks. The SEC indicted Ripple Labs and two of its executives in 2020 for raising more than $1.3 billion through the unregistered security token XRP in 2013.
U.S. Attorney John E Deaton took to Twitter on March 27th to predict that a ruling on the lawsuit would be announced soon, possibly even within the next week. James Filan, a former U.S. federal prosecutor and attorney, also stated that he expects a summary judgment between Ripple and the SEC to be reached by the end of March.
Many are now focusing on the impact that the final ruling will have on XRP and altcoins. Ben McMillan, Founder and Chief Investment Officer of IDX Digital Assets, told Blockworks that “the ruling could significantly shake XRP prices and the broader altcoin market.” He went on to predict that, depending on the outcome, XRP could either rise more than 100% or retest below $0.30.
Matthew Sigel, head of digital asset research at asset management firm VanEck, explained that XRP has recently rebounded significantly as it is likely that Ripple will prevail or the court will hand over a summary judgment to trial. If Ripple wins, XRP could move in the range of 15-30%, he said. Sigel also predicted that depending on the specifics of the ruling, Ethereum could move 5% and other altcoins could move 10% or more.
McMillan also predicted that the decision would affect the market as a whole beyond XRP. “Considering that the SEC has taken an aggressive stance by considering all cryptocurrencies except Bitcoin as securities, the entire cryptocurrency ecosystem will see a ‘risk on’ rally in which risk investor sentiment is restored,” he said.
Attorney John Deaton argued that even if the SEC wins, Ripple will appeal and the price of XRP will be maintained. The industry also predicted that Ripple would provide a clue to the dispute over jurisdiction between the SEC and CFTC. SEC Chairman Gary Gensler claims jurisdiction, saying that most cryptocurrencies other than Bitcoin are securities, while the CFTC recently filed a lawsuit against Binance, naming Bitcoin, Ethereum, and Litecoin as ‘commodities’.
McMillan expected a positive impact on the cryptocurrency market, saying, “The Ripple lawsuit’s ruling will give the industry long-awaited and much-needed ‘cryptocurrency jurisdiction’ clarity.” At the time of writing, XRP is currently trading at around $0.54, up 5.8% from the previous day and 28.83% from a week ago. Investors and industry players alike are eagerly anticipating the final ruling and the potential impact it may have on the market.
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