The case between the U.S. Securities and Exchange Commission (SEC) and Ripple has a new twist after the financial regulator experts said XRP’s price was influenced 90% of the time by that of Bitcoin and Ethereum.
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.
Pro-XRP attorney Jeremy Hogan has shared his opinion on the new fact. According to him, the judge could rule that all XRP sales since mid-2018 are not securities if she wanted to “split the baby.”
This is because the SEC expert has already admitted to it. It could mean that Ripple would only pay an affordable fine and continue business since it has become clear that the XRP is not a security. He added:
“Maybe Coinbase will only be selling Bitcoin and…XRP by next year.”
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.
XRP Breaches $0.50
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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