XRP could see a significant price surge if Ripple prevails in its ongoing legal battle with SEC
The crypto world believes the case between Ripple and the SEC is nearing its end. The court’s conclusion is expected to significantly impact the crypto markets’ regulatory trajectory, particularly on securities classification.
In the most recent update, as AZCoin News reported, pro-Ripple lawyer John Deaton predicted in a tweet on March 27 that the judge’s decision would be issued within the next few weeks, if not this week.
XRP has the most attractive risk/reward ratio IMO. The Judge’s ruling is coming down w/in the next few weeks (maybe this week). If the SEC wins, what’s the downside from .45? Ripple appeals and we get the status quo. Ripple wins and its made clear XRP isn’t a security? Upside? 🤔
— John E Deaton (@JohnEDeaton1) March 26, 2023
According to Deaton, if the SEC wins, there may not be much downside for XRP because it has the best risk/reward ratio. However, if Ripple wins, it will be apparent that XRP is not a security and that the token will have an upside.
A Fox Business article indicated that lawyers working on the case suggested that the legal disagreement could be resolved in the coming days, raising the prospect of a summary judgment date.
Deaton, who believes the contentious Hinman speech emails will be unsealed because they are “judicial papers,” has pushed the crypto community to see the lawsuit as an attack on the entire digital asset market rather than just Ripple.
The SEC reacts to the defendants of Ripple
In another update, on March 23, defense lawyer James Filan tweeted that the SEC has filed its answer to the Ripple defendants’ letters regarding supplemental authority taken from the Bittner and Voyager cases.
According to the SEC’s response, the letter contained throwaway observations, paragraphs from the judge’s concurring judgment in the Bittner case, and a bankruptcy plan confirmation order from the Voyager case. It goes on to say that the defendants argue that the extracts support their “fair notice” claim, which the SEC disagrees with, and that there is no basis to deny the SEC’s request for summary judgment.
In this vein, Ripple supporter Jeremy Hogan suggested that while the SEC’s response raises valid points about the Bittner case, the regulator’s attempt to argue against the Voyager judge’s ruling on the apparent uncertainty of the crypto space is “smirkable.” He said that while the response nullifies the Bittner verdict, the Voyager judge’s decision still stands for Ripple.
With both parties confident in their ability to win the case, one notable outcome has been the possibility of a settlement. Nevertheless, according to Australian lawyer Bill Morgan, examining the SEC’s answer letter eliminates the likelihood of a settlement.
The latest developments in the case have functioned as a positive stimulus for XRP, with the asset recently experiencing a price breakout from the rest of the market. By press time, XRP was trading at $0.4789, up about $0.5% daily. Every week, XRP is up more than 20%.
XRP/USD 4-hour chart | Source: TradingView
At its current price, XRP aims to break through the $0.5 resistance level, even as the coin continues to garner considerable capital inflows, resulting in a market valuation of $23.80 billion.
As indicated by a recent development in the case, the XRP community remains upbeat. In support of their fair notice defense, the defendants recently submitted a Letter of Notice of Additional Authority. This notification mentions Judge Michael Wiles’ ruling in the Voyager bankruptcy case, in which he dismissed the SEC’s concerns and allowed the bankruptcy plan. As the legal battle between the SEC and Ripple Labs rages on, investors and the cryptocurrency community await the court’s ruling, which may have a big impact on the price of XRP and the broader cryptocurrency market.
Read more:
- Pro-Ripple Attorney Predicts Verdict In SEC Lawsuit Coming Soon
- XRP Price Might Also Be Boosted By Broader Crypto Market Sentiment