In the world of cryptocurrencies, an important legal battle is taking place between Ripple and the US Securities and Exchange Commission (SEC) The dispute revolves around the status of XRP as an unregistered security. Lawyers Bill Morgana and John Deaton raise important issues, and the outcome of the case may have a significant impact on the future of XRP and its investors.
Recently, discussions about the Ripple versus SEC case have intensified among lawyers. According to attorney, Bill Morgana, the SEC may be right about investors buying XRP in anticipation of Ripple’s victory in the ongoing case against the SEC. The claim involves a legal battle between the SEC and Ripple, in which the regulatory body alleges that XRP is an unregistered security.
An SEC expert reportedly admitted that returns from Bitcoin and Ethereum constitute the majority of XRP returns since mid-2018. However, the SEC still maintains that XRP investors rely on Ripple’s efforts to achieve gains.
Ripple’s position as a centralized entity gives it control over the price of XRP, raising questions about the decentralization of XRP and Ripple’s role in its market performance. Morgan further stated that if the SEC experts’ analysis is accurate, Ripple would be responsible for price fluctuations in Bitcoin and Ethereum affecting the value of XRP.
According to Morgana, the regulatory body concedes that investors may rely on Ripple’s legal efforts to profit, rather than the company’s business efforts. As a result, the outcome of Ripple’s legal battle with the SEC carries significant weight regarding XRP’s value, highlighting the crucial role of the lawsuit in shaping the cryptocurrency’s future and its investors.
The SEC’s lawsuit against Ripple prompted many XRP supporters to comment on the third and fourth parts of the Howey test. These legal frameworks determine whether an asset component qualifies as an investment contract, and the SEC has invoked them to argue that XRP should be considered an unregistered security.
As the legal battle between Ripple and the SEC continues, lawyers supporting XRP, such as Bill Morgan, John Deaton, and Jeremy Hogan, express doubts about the SEC’s argument. In particular, they have questioned the agency’s reliance on the Howey test to argue that XRP is an investment contract.
John Deaton suggested that Judge Torres might view Ripple’s actions as an offering. Deaton expressed skepticism about Ripple’s counterargument that there was no base contract that would qualify this move as an investment contract. According to Deaton, this argument could be accepted in the Second Circuit and the Supreme Court, but it may not convince Judge Torres.
In an interview with Thinking Crypto, Deaton, representing thousands of XRP holders in the lawsuit, predicts that Judge Torres will issue a ruling on May 6th or earlier. Deaton bases his predictions on Judge Torres’ timeline of rulings in previous cases, noting that she usually issues summary judgments within two months of deciding on Daubert motions.
XRP holders and the broader crypto community will be closely watching Judge Torres’ decision as the case progresses. Deaton added that a summary judgment in the Ripple versus SEC case could be issued at any time, and the ruling could be delayed until June 1st or later. The impact of this decision on the future of XRP will be of great importance to investors and the cryptocurrency market.
