- Lawyer Bill Morgan revealed that the SEC’s expert admitted Bitcoin and Ethereum have been responsible for up to 90% of fluctuations in the value of XRP since mid-2018.
- Ripple is being sued by the SEC for selling unregistered securities in the form of XRP tokens.
The lawsuit by the Securities Exchange Commission (SEC) against blockchain firm Ripple has taken a new twist with the potential to sway the final ruling significantly. In a tweet on April 7, lawyer Bill Morgan revealed that the SEC’s expert had admitted that the prices of Bitcoin (BTC) and Ethereum (ETH) have been responsible for up to 90% of fluctuations in the value of XRP since mid-2018.
Ripple Indirectly Permitting XRP Value to be Influenced by Bitcoin and Ethereum
Morgan suggested that if the SEC’s expert assumption is accurate, it could imply that Ripple is indirectly permitting the value of XRP to be influenced by the price fluctuations of Bitcoin and Ethereum. Therefore, by presenting evidence that Ripple’s price statements impact XRP’s value, the SEC attempts to demonstrate the assertion. Notably, the fact that the value fluctuations of Bitcoin also impact the prices of most cryptocurrencies supports Morgan’s argument.
It was surprising to me that the SEC’s own expert conceded that since mid-2018 onwards that Bitcoin and Ethereum price movement can explain as much as 90% of XRP’s price movement./1 pic.twitter.com/0ZA33On6EO
— bill morgan (@Belisarius2020) April 7, 2023
Possible Unforeseen Outcome of Ripple Lawsuit
Another pro-XRP lawyer, Jeremy Hogan, predicted an unforeseen outcome for the case. Hogan speculated that if the presiding judge decided to “split the baby,” she could rule that XRP sales after mid-2018 were not securities, as even the SEC recognizes that Ripple’s actions during that period had minimal influence on the token’s value.
Hogan further pointed out possible implications of such a ruling suggesting that Ripple may be required to pay a fine and continue operating its business. Additionally, with XRP being the only cryptocurrency with a clear legal status, Hogan noted that it could influence the listing of digital assets on various trading platforms.
Potential Danger for Cryptocurrencies
The admission by the SEC’s expert that Bitcoin and Ethereum have been responsible for up to 90% of fluctuations in the value of XRP since mid-2018 highlights a potential danger for cryptocurrencies like Ripple and XRP. As cryptocurrencies become more interconnected, the value of one cryptocurrency can have a significant impact on the value of others.
This can lead to increased regulatory scrutiny and uncertainty in the status of cryptocurrencies as securities or commodities. The outcome of the Ripple lawsuit is expected to impact the value of XRP and the general crypto sector, underscoring the need for clearer regulatory guidance.
The Ripple lawsuit has been closely watched by the cryptocurrency community, with the case outcome expected to have significant implications for the industry. The case highlights the need for greater regulatory clarity as cryptocurrencies continue to gain mainstream acceptance.
Currently, XRP is trading at $0.51 with gains of about 1% on the weekly chart. The date for the summary judgment is still unknown, but the case is expected to reach a conclusion soon.