The ongoing legal battle between blockchain firm Ripple and the Securities Exchange Commission (SEC) is projected to impact the general crypto market.
In this line, XRP token price performance is among the most monitored elements.
Ahead of the summary judgment, the crypto community has been using another almost related case to gauge what might happen to XRP. In particular, the case between SEC and the blockchain-based sharing platform LBRY has offered possible outcomes in the Ripple case.
In the matter, the SEC sued LBRY for offering its LBC tokens without registering with the regulator. Notably, a United States judge ruled that LBC tokens are only considered securities at the time of direct sale.
It is worth noting that SEC won summary judgment in November last year when each LBC token sale was labelled as an investment contract. In the latest ruling, SEC hoped to regulate the secondary market and stop LBC token sales.
Interestingly, the latest decision saw the value of LBC soar. In this line, lawyer and crypto sector commentator Bill Morgan stated that XRP could replicate the same price trajectory if SEC loses the case.
Shows what could happen to XRP if the case has a good outcome https://t.co/uA63GMgxW4
— bill morgan (@Belisarius2020) January 31, 2023
XRP’s possible trajectory
At the same time, fellow legal expert Jeremy Hogan wondered what could happen to XRP, considering that the value of LBC spiked almost 100% in a week despite the parent company not fully winning the lawsuit.
Below is the LBC weekly chart (up 100%) and LBRY completely lost the SEC lawsuit and is going into bankruptcy.
What does this mean vis a vis XRP?
Asking for a friend. 🙂 pic.twitter.com/FWHlQ2wsoH
— Jeremy Hogan (@attorneyjeremy1) February 1, 2023
It is worth mentioning that SEC is suing Ripple for selling XRP as unregistered securities, a matter that has left varied speculation in the crypto space. Indeed, if the SEC wins, the outcome might have a range of consequences, such as the reclassification of XRP as a security, which could affect its availability and demand.
As reported by Finbold, Hogan had noted that the case could have several outcomes while maintaining that both parties stand a better chance of emerging victorious.
Initially, it was highly anticipated that Ripple might win after recording minor victories during the hearing. At the time, XRP reacted positively, recording a surge in value. Currently, both parties are locked in a tussle regarding the type of documents to be sealed.
At the same time, XRP holders lawyer John Deaton noted that the matter might go into a settlement after the summary judgment. In this case, Deaton believes the settlement might be an option to avoid further appeals.
XRP price analysis
By press time, XRP was trading at $0.40 after gaining almost 0.4% in the last 24 hours.
XRP seven-day price chart. Source: Finbold
As things stand, XRP accounts for a market cap of about $20.55 billion.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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