The SEC-Ripple lawsuit witnessed a major turning point against the blockchain company, just one step away from the final verdict. The US regulator now plans to squeeze the company over XRP’s correlation with BTC and ETH.
SEC-Ripple lawsuit flares up with hot allegations
Lawyer Bill Morgan said that, according to the testimony of an SEC expert, Bitcoin and Ethereum are responsible for 90% of the fluctuation in the value of XRP. This means that the price of XRP is indirectly tied to the price changes of Bitcoin and Ethereum.
The SEC claims that Ripple’s announcements affect the value of XRP and is trying to prove this claim. If the SEC’s claim is true, Ripple may face legal problems as it has not obtained the necessary permissions to sell XRP as a security.
The new claims include: It is claimed that 90% of the fluctuations in the price of XRP are due to the fluctuations in the prices of Bitcoin and Ethereum. The SEC’s claim is that Ripple’s announcements and statements affect the value of XRP. If this claim is true, Ripple is in danger because it has not obtained the necessary permissions to sell XRP as a security. Therefore, Ripple’s claim that the price of XRP is affected by Bitcoin and Ethereum prices may strengthen the SEC’s hand, according to new statements from an SEC expert.
Ripple wants Hinman documents
In particular, the fact that Bitcoin’s price fluctuations also affect most altcoin markets supports Morgan’s argument. Morgan further emphasized that Ripple’s key XRP holdings remain the belief that XRP Ledger is proposed to be centralized and that XRP qualifies as a security.
It is worth noting that the SEC has sued Ripple for selling unregistered securities in the form of XRP tokens. As part of its defense, Ripple is pushing for unsealing the Hinman speech documents, in which the regulator refers to Bitcoin and Ethereum as securities.
Parties claiming the SEC’s XRP price
Interestingly, Morgan sided with the SEC’s claim that investors relied on Ripple’s legal efforts to win the SEC lawsuit. The lawyer also explained that investors do not rely on Ripple’s business operations to profit from XRP, but on the company’s legal efforts to prevail in the SEC lawsuit:
Paradoxically, the SEC may be right that investors are trusting Ripple’s efforts, but not because of Ripple’s commercial efforts or XRP sales, but rather because of legal efforts that would overturn the SEC’s case if it were successful.
In whose favor will the Ripple case end?
Based on Morgan’s words, another pro-XRP attorney, Jeremy Hogan, predicted an unpredictable outcome for the case. Hogan speculated that the court might decide that XRP sales were not securities after mid-2018, as even the SEC agreed that Ripple’s actions at that time had minimal impact on the token’s value:
If the Judge in the Ripple case wanted to, he could have ruled that XRP sales since mid-2018 are NOT securities because even the SEC acknowledges Ripple’s actions. It has had almost no impact on the price of XRP since then.
Hogan also pointed out the possible consequences of such a decision, suggesting that Ripple may have to pay a fine and keep its business. Additionally, since XRP is the only cryptocurrency with a clear legal status, Hogan noted that listings of cryptocurrencies on various exchanges may be affected.
When will the Ripple lawsuit end?
Initially, some legal experts had predicted that the case would be settled in the first quarter of 2023. Overall, the outcome of the lawsuit is expected to impact the value of XRP and the overall crypto industry. XRP is currently trading above $0.50, down about 1% on the weekly and daily chart. cryptocoin.com As we have reported, it rallied over 25% last week with the positive news from the case.
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