Ripple v. SEC: XRP Price Could More Than Double If Ripple Wins Against SEC
The crypto industry, the XRP community, and Ripple all have a lot to thank attorney John E. Deaton for today. According to Bitcoinist, Deaton testified as a “amicus curiae” in the LBRY v. U.S. Securities and Exchange Commission remedies hearing (SEC).
The SEC’s position on secondary sales of the LBC token not being securities was “live and on film” and obtained by the lawyer. The New Hampshire district judge also said that he would make it clear in the final remedy that he does not have jurisdiction over the secondary market.
This was tremendously fantastic news for the LBC token, as the prior judgement threatened the token’s continued existence apart from the LBRY corporation. Yesterday, the LBC price response was quite optimistic. As soon as word spread, the price went increased by as much as 150%. At the time of publication, the price of LBC was $0.024913, reflecting a significant increase of 120% since the beginning of the year.
If Ripple wins, will the price of XPR double?
What might happen to the XRP price if Ripple wins and regulatory clarity is achieved is hinted at by the jump in the LBC token price after LBRY’s partial victory against the SEC yesterday.
The XRP price dropped from $0.60 to $0.17 in the span of a week when the SEC filed its complaint against Ripple in late December 2020.
As with other cryptocurrencies like Bitcoin and Ethereum, XRP has been significantly weaker in comparison to its peers since the lawsuit was filed. From its peak, XRP is down -88.1%, while Bitcoin is down -66.7% and Ethereum is down -67%. According to this data, potential XRP investors have been hesitant to invest due to the substantial risk involved with the SEC case.
On the other hand, if Ripple were to win, the ensuing frenzy might encourage both new and existing investors to boost their XRP holdings. Legal advisor for the XRP community Bill Morgan has suggested that the LBC rally demonstrates what can be accomplished in the event of a Ripple triumph.
Shows what could happen to XRP if the case has a good outcome https://t.co/uA63GMgxW4
— bill morgan (@Belisarius2020) January 31, 2023
Not to mention, it’s important to remember that Ripple and LBRY are in totally different situations. The SEC prevailed in its action against LBRY, and the judge found that LBRY’s LBC sales constitute securities.
This effectively prohibits LBRY from selling LBC tokens in the United States without first obtaining SEC approval. However, Ripple is working hard to assure that, as of a specific date, or at least in the future, XRP sales will not be considered securities.
Because of this, Ripple still has a shot at a clean sweep, and its chances are substantially better than those of its competitors. Also, it’s worth noting that the XRP market is significantly more liquid than the LBC token market. However, given XRP’s historically suppressed pricing, a situation similar to LBC’s is not improbable.
Significant buying pressure might be added if XRP were to be relisted on U.S. cryptocurrency exchanges, and the same could be said for partnerships with U.S. corporations or banks that were placed on hold due to the SEC. Possible candidates include the Bank of America or MoneyGram.
Ahead of today’s Fed interest rate decision and FOMC meeting, XPR was trading at $0.4030 at time of publication.
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