Bill Morgan, who is qualified to practice law in both the United Kingdom and Australia, has suggested that the price of $ XRP Ripple (XRP) could explode upward if the United States Securities and Exchange Commission’s (SEC) lawsuit against Ripple and two of its executives has a “positive outcome.”
Morgan’s comments came at a time in which the digital currency community is expecting a summary judgment on the case, after both parties requested it. In the meantime, a similar case betwixt the SEC and another fintech company, blockchain-based sharing platform LBRY, has shared insights as to what could happen in Ripple’s case.
The SEC sued LBRY in March 2021 over the platform’s sale of its $LBC crypto tokens without registering with the regulating authority. Despite the fact that the LBRY team didn’t offer the crypto tokens through an initial coin offering (ICO), they kept some crypto tokens for themselves before releasing them on secondary exchanges to finance operations.
The summary judgment of that legal case saw a judge argue that LBC crypto tokens incentivized the project’s team to keep building on the network, which suggested to investors it would be a profitable financing on the secondary market.
Late the previous 30 days, during an appeal hearing in New Hampshire, a judge made it clear that $LBC are only considered securities at the time of direct sale. The clarification saw the price of $LBC surge, and fueled speculation for $ XRP Ripple (XRP) itself.
As CryptoGlobe informed, $ XRP Ripple (XRP) was delisted by a number of digital currency platforms of trading after the SEC launched its lawsuit, including Coinbase Crypto exchange and Crypto.com. Several users now speculate that $ XRP Ripple (XRP) may be relisted if the case turns in Ripple’s favor.
Earlier in the year, Ripple CEO Brad Garlinghouse has stated that the fintech company is unlikely to settle with the SEC in the regulator’s lawsuit against it and two executives, which alleges they “raised over $1.3 Billion through an unregistered, ongoing digital investment securities offering.”
Garlinghouse defended the fintech company has been battling on behalf of the entire digital currency industry. Plenty of digital currency corporations have indeed requested a federal court for permission to file a friend-of-the-court brief in the ongoing lawsuit, including Coinbase Crypto exchange, the Blockchain Tech Association, and SpendTheBits.
Jeremy Hogan, an $ XRP Ripple (XRP) proponent and a United States legal counsel, has recently stated that the United States Securities and Exchange Commission’s lawsuit against Ripple and two of its executives could soon be settled.
It’s worth noting that, Hogan has stated that the lawsuit being settled could lead to an XRP Ripple (XRP) supply shock, which presumably would lead to a price surge as demand would remain the same, while supply plunged. The digital currency community it’s worth noting that sees XRP’s price explode upward when both parties requested for a summary judgment.
Featured Image via Pixabay