Ripple v. SEC court case update as of March 27, 2023

There is a growing consensus in the crypto community that the conclusion of the case between blockchain firm Ripple and the Securities Exchange Commission (SEC) is around the corner. The case outcome is highly expected to impact the regulatory trajectory in the crypto markets, especially on securities classification.

In the latest update, pro-Ripple lawyer John Deaton in a tweet on March 27, projected that the judge’s ruling was coming down within the next few weeks or even this week.

According to Deaton, if the SEC wins, there might not be much downside for XRP, noting that the token has the most attractive risk/reward ratio. However, he pointed out that if Ripple wins, it will be made clear that XRP is not a security, and the token will have an upside.

The possibility of the summary judgment date was further elevated by a Fox Business report that indicated that lawyers working on the matter have suggested that the legal dispute might end in the coming days.

Deaton, who believes that the controversial Hinman speech emails will be unsealed on the grounds of being “judicial documents,” has challenged the crypto community to view the case as an attack on the general digital asset industry and not solely a Ripple issue.

In another update, defense lawyer James Filan in a tweet on March 23, shared the SEC had filed its response to the Ripple defendants’ letters regarding supplemental authority drawn from the Bittner and Voyager cases.

According to the SEC’s response, the letter set forth stray remarks, lines from the judge’s concurring opinion in the Bittner case, and a bankruptcy plan confirmation order from the Voyager case. It added that the defendants contend that the excerpts support their “fair notice” defense, which the regulator disagrees with, and that it does not provide any basis to deny the SEC’s motion for summary judgment.

In this line, lawyer Jeremy Hogan, who is in support of Ripple, suggested that the SEC’s response raises valid points about the Bittner case but notes that the regulator’s attempt to argue against the Voyager judge’s ruling on the apparent uncertainty of the crypto space is “smirkable.” He further explained that while the response negates the Bittner decision, the Voyager judge’s ruling remains good for Ripple.

With both parties confident about winning the case, one notable outcome has been a possible settlement. However, Australian lawyer Bill Morgan noted that an assessment of the SEC’s response letter ends the possibility of a settlement.

The latest happenings around the case have acted as a bullish catalyst for XRP, with the asset recording a price breakout from the rest of the market recently. By press time, XRP was trading at $0.46 after recording daily gains of about $0.5%. On the weekly chart, XRP is up over 20%.

At the current value, XRP is now targeting breaching the $0.50 resistance position even as the token continues to attract significant capital inflow that has culminated in a market cap of $23.80 billion.