New Facts Emerge in SEC vs. Ripple (XRP) Case

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The case between the US Securities and Exchange Commission (SEC) and Ripple has a new twist after the financial regulator’s experts said that the price of XRP is 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 it goes against the SEC’s claim that Ripple’s efforts were responsible for XRP’s performance.

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

SEC Counsel Opinion on XRP (Source: Bill Morgan)

He also noted that the SEC had asserted in its motion for summary judgment that Ripple had taken several actions to support the price of XRP. But that didn’t prove the action worked, as the regulator only wanted to show that XRP buyers and holders were expecting profits from Ripple’s efforts.

However, Morgan added that the SEC could rightly say that investors are counting on Ripple’s efforts. But the effort is not the trading efforts or XRP sales.

Instead, it’s the legal efforts the company is making to defeat the SEC lawsuit. “That’s not the kind of effort the court in the Howey case had in mind,” Morgan noted.

A pro-XRP lawyer shares his opinion on the discovery

Pro-XRP lawyer Jeremy Hogan shared his opinion on the new fact. According to him, the judge could decide that all XRP sales since mid-2018 are not securities if she wanted to “separate the baby”.

That’s because the SEC expert has already admitted it. This could mean that Ripple would only pay an affordable fine and continue trading since it became clear that XRP is not a security. He added:

“Maybe Coinbase will only sell Bitcoin and…XRP by next year.”

SEC and Ripple Case can last until 2026

Meanwhile, the new revelation adds more drama to the SEC and Ripple affair, which has been going on since late 2020.

The prediction that the judge would rule on the motion for summary judgment by March 31 had not materialized, leading many to expect the case to last much longer.

Hogan believes the trial could last beyond 2026, depending on the judge’s verdict in the current case. Since the parties can appeal any decision made, any appeal could see the case go all the way to the Supreme Court, he said.

XRP Violations $0.50

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

The digital asset has grown by 31% in the past 30 days, outperforming other major digital currencies like Bitcoin, Ethereum, and Cardano, which have gained around 20%, respectively.

XRP price performance (Source: BeInCrypto)

Meanwhile, according to data from Lunar Crush, XRP’s social dominance has fallen massively from the highs of previous weeks.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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