If the US Securities and Exchange Commission (SEC) case against Ripple and two of its executives have a “good outcome,” according to Bill Morgan, who is qualified to practice law in both the United Kingdom and Australia, the price of $XRP could skyrocket.
Morgan’s remarks came at a time when the cryptocurrency industry is anticipating a summary decision in the case, which was requested by both sides. In the meantime, a similar lawsuit involving the SEC and another fintech company, blockchain-based file-sharing platform LBRY, has shed light on what may transpire in Ripple’s case.
In March 2021, the SEC filed a lawsuit against LBRY for selling $LBC tokens without registering with the regulator. Even though the LBRY team did not conduct an initial coin offering (ICO), they retained some tokens before distributing them on secondary exchanges to fund operations.
A judge argued in the summary decision of that case that LBC tokens incentivized the project team to continue building on the network, suggesting to investors that they would be a worthwhile investment on the secondary market.
A judge explained late last month during an appeal hearing in New Hampshire that $LBC are only considered securities during direct sales. The clarification caused the price of $LBC to increase and encouraged speculation regarding $XRP.
As CryptoGlobe reported, $XRP was delisted by a number of cryptocurrency trading platforms after the SEC initiated its complaint, including Coinbase and Crypto.com. Some users now hypothesize that $XRP could be relisted if Ripple prevails in court.
Ripple CEO Brad Garlinghouse stated earlier this year that the fintech company is unlikely to reach a settlement with the SEC in the regulator’s lawsuit against it and two executives, which alleges they “raised more than $1.3 billion through an unregistered, ongoing digital asset securities offering.”
Garlinghouse supported the fintech company that has been fighting for the bitcoin industry as a whole. Coinbase, the Blockchain Association, and SpendTheBits, among others, have requested federal court permission to write a friend-of-the-court brief in the continuing litigation.
The U.S. Securities and Exchange Commission’s action against Ripple and two of its executives may soon be resolved, according to Jeremy Hogan, an advocate for $XRP and an attorney in the United States.
Notably, Hogan has stated that the settlement of the dispute could result in an XRP supply shock, which would likely lead to a price increase because demand would remain unchanged but supply would plummet. When both parties asked for a summary judgment, the price of XRP dramatically skyrocketed in the cryptocurrency community.
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