As the <a href="https://finbold.com/guides/cryptocurrency/" rel="noopener noreferrer nofollow">cryptocurrency</a> community awaits the summary judgment in the <a href="https://finbold.com/ripple-v-sec-court-case-update-as-of-april-3-2023/" rel="noopener noreferrer nofollow">lawsuit</a> by the Securities Exchange Commission (<a href="https://finbold.com/topic/sec/" rel="noopener noreferrer nofollow">SEC</a>) against <a href="https://finbold.com/topic/blockchain/" rel="noopener noreferrer nofollow">blockchain</a> firm <a href="https://finbold.com/topic/ripple/" rel="noopener noreferrer nofollow">Ripple</a>, the case has taken a new twist with the potential to sway the final ruling significantly.In particular, lawyer Bill Morgan in a <a href="https://twitter.com/Belisarius2020/status/1644318616681353218" rel="noopener noreferrer nofollow">tweet</a> on April 7, revealed that the SEC’s expert had admitted that the prices of Bitcoin (<a href="https://finbold.com/cryptocurrency/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) and Ethereum (<a href="https://finbold.com/cryptocurrency/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) have been responsible for up to 90% of fluctuations in the value of <a href="https://finbold.com/guide/how-to-buy-ripple-xrp/" rel="noopener noreferrer nofollow">XRP</a> since mid-2018.He suggested that if the SEC’s expert assumption is accurate, it could imply that Ripple is indirectly permitting the value of XRP to be influenced by the price fluctuations of Bitcoin and Ethereum. Therefore, by presenting evidence that Ripple’s price statements impact XRP’s value, the SEC attempts to demonstrate the assertion.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/83a60aca366448a9ad71916094021cbd.PNG" />&#64;Belisarius2020&#39;s Tweet. Source: <a href="https://twitter.com/Belisarius2020/status/1644318616681353218" rel="noopener noreferrer nofollow">Twitter.com</a>Notably, the fact that the value fluctuations of Bitcoin also impact the prices of most <a href="https://finbold.com/cryptocurrencies" rel="noopener noreferrer nofollow">cryptocurrencies</a> supports Morgan’s argument. Morgan also highlighted that the belief that Ripple’s significant holdings of XRP suggest centralization of the XRP Ledger and that XRP qualifies as a security persists.It is worth noting that the SEC is suing Ripple for selling unregistered securities in the form of <a href="https://finbold.com/cryptocurrency/xrp/" rel="noopener noreferrer nofollow">XRP tokens</a>. As part of its defense, Ripple is pushing for unsealing of Hinman speech documents where the regulator referenced Bitcoin and Ethereum as securities.<h2 id="header-0">Siding with SEC’s assertion on XRP value</h2>Interestingly, Morgan sided with the SEC assertion that investors rely on Ripple’s legal endeavors to prevail in the SEC lawsuit. The attorney also clarified that investors do not count on Ripple’s commercial operations to generate profits from XRP but rather on the company’s legal efforts to emerge victorious in the SEC lawsuit.<blockquote>“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.</blockquote><h2 id="header-1">Possible case outcome</h2>Based on Morgan’s remarks, another pro-XRP lawyer, Jeremy Hogan, <a href="https://twitter.com/attorneyjeremy1/status/1644332437265084417" rel="noopener noreferrer nofollow">predicted</a> an unforeseen outcome for the case. Hogan speculated that if the presiding judge decided to “split the baby,” she could rule that XRP sales after mid-2018 were not securities, as even the SEC recognizes that Ripple’s actions during that period had minimal influence on the token’s value.<blockquote>“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.</blockquote>Hogan further pointed out possible implications of such a ruling suggesting that Ripple may be required to pay a fine and continue operating its business. Additionally, with XRP being the only cryptocurrency with a clear legal status, Hogan noted that it could influence the listing of digital assets on various trading platforms.In the meantime, there continues to be speculation about the date for the summary judgment. Initially, some legal experts had projected the case ruling to occur during the first quarter of 2023.Overall, the case outcome is expected to impact the value of XRP and the general crypto sector. Currently, XRP is trading at $0.51 with gains of about 1% on the weekly chart.Read more cryptocurrency news on <a href="https://finbold.com/category/cryptocurrency-news/?utm_source&#61;CMC&amp;utm_medium&#61;social&amp;utm_campaign&#61;CMC&amp;utm_content&#61;long" rel="noopener noreferrer nofollow">Finbold.com</a>.

Sudden twist in Ripple v. SEC case; Here’s what happened

Tabla de contenidos

Finbold

Otros artículos publicados el 8 abr 2023

Machine learning algorithm sets Solana price for April 30, 2023

XRP Price Analysis 08/04: Bulls and Bears Battle as Lawmaker Slams SEC

US Crypto Investors Are Not Paying Crypto Taxes: Real Reason Behind Increasing Regulations

Bitcoin Derivatives Favor Further BTC Price Rally Toward $30K

Solana Deploys State Compression To Bring Down NFT Minting Costs

The all-new Kromatika dApp UI v2

¡Únete a nuestro boletín gratuito para recibir actualizaciones diarias de criptografía!