Bill Morgan, who is qualified to practice law in both the UK and Australia, has suggested that the price of $XRP could explode upward if the U.S. 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 cryptocurrency community is expecting a summary judgment on the case, after both parties requested it. Meanwhile, a similar case between the SEC and another fintech firm, 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 tokens without registering with the regulator. Although the LBRY team didn’t offer the tokens through an initial coin offering (ICO), they kept some tokens for themselves before releasing them on secondary exchanges to fund operations.
The summary judgment of that legal case saw a judge argue that LBC tokens incentivized the project’s team to keep building on the network, which suggested to investors it would be a profitable investment on the secondary market.
Late last month, during an appeal hearing in New Hampshire, a judge clarified 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 itself.
As CryptoGlobe reported, $XRP was delisted by a number of cryptocurrency trading platforms after the SEC launched its lawsuit, including Coinbase and Crypto.com. Some users now speculate that $XRP could be relisted if the case turns in Ripple’s favor.
Earlier this year, Ripple CEO Brad Garlinghouse has said that the fintech firm 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 asset securities offering.”
Garlinghouse defended the fintech firm has been battling on behalf of the entire cryptocurrency industry. Several cryptocurrency firms have indeed asked a federal court for permission to file a friend-of-the-court brief in the ongoing lawsuit, including Coinbase, the Blockchain Association, and SpendTheBits.
Jeremy Hogan, an $XRP proponent and a U.S. legal counsel, has recently said that the U.S. Securities and Exchange Commission’s lawsuit against Ripple and two of its executives could soon be settled.
Notably, Hogan has said that the lawsuit being settled could lead to an XRP supply shock, which presumably would lead to a price surge as demand would remain the same, while supply plunged. The cryptocurrency community notably sees XRP’s price explode upward when both parties asked for a summary judgment.
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