Judge Might Rule That XRP Sales After 2018 Are Not Securities

April 12, 2023 7:02 pm Comments

The lawsuit between Ripple and the SEC continues to drag on as the debate on whether or not XRP is considered a security is still unresolved.

Most recently, it was indicated within the case that financial regulator experts shared that the price of XRP was influenced mainly by the price action of Bitcoin and Ethereum.

As a result of this claim, this could prove that XRP’s main influence is not from the company Ripple itself, but from outside market forces.

Therefore, it is impossible to say that Ripple is responsible for XRP performance which directly contradicts the SEC’s summary judgement motion that Ripple artificially supported XRP’s price.

This new fact in the case demonstrates another contradiction that works against the SEC’s argument and could further help move the case along.

BeInCrypto reports:

Crypto attorney Bill Morgan shared a screenshot of the statement on Twitter, noting that this defeats SEC’s claim that Ripple’s efforts were responsible for XRP performance.

According to him, the narrative that Ripple control XRP price would be wrong because Bitcoin price movement generally influences that of other cryptocurrencies.

He also noted that the SEC claimed in its summary judgment motion that Ripple took several measures to support XRP’s price. But it did not prove that the action worked, as the regulator only wanted to show that XRP buyers and holders expected profits from Ripple’s efforts.

However, Morgan added that the SEC might correctly assert that investors rely on Ripple’s efforts. But the effort is not the business efforts or XRP sales.

Instead, it is the legal efforts that the company is making to defeat the SEC lawsuit. “Not the kind of efforts the court in the Howey case had in mind,” Morgan noted.

The continual revelation of contradictions that are brought up will ultimately weaken the SEC’s case against Ripple.

XRP attorney Jeremy Hogan was also not silent about this new revelation and shared that this could help the judge rule that all XRP sales after mid-2018 would not be considered securities.

Of course, this is sounds like a compromise that a judge would make to make both parties happy, but would at least still indicate that XRP is ultimately not a security.

Even if this scenario happened, the price of XRP would certainly be very bullish as it would mean that it is now able to be relisted on all exchanges and Ripple can continue to do business.

With these new revelations, it is still unclear what the exact timeline of the lawsuit will be and when it will end.

BeInCrypto shares some predictions:

Meanwhile, the new revelation adds more drama to the SEC and Ripple case, which has been on since late 2020.
The prediction that the judge would decide on the summary judgment motion by March 31 had failed to pass, leading many to expect the case to last much longer.

Hogan believes the lawsuit could last beyond 2026, depending on the judge’s verdict in the current case. Since the parties can appeal any decision reached, any appeal could see the case reach as far as the Supreme Court, he said.

For the second time this week, XRP is trading above $0.51 after rising by 0.53% in the last 24 hours, according to BeInCrypto data.

The digital asset rose 31% in the last 30 days, outperforming other top digital currencies like Bitcoin, Ethereum, and Cardano, which gained around 20%, respectively.

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