- Pro XRP attorney John Deaton assures the altcoin’s holders that there is nothing strange in the delay of the SEC vs. Ripple lawsuit.
- Judge Torres hasn’t issued a ruling in the lawsuit since Ripple and the SEC filed their reply briefs seven months ago.
- XRP price has sustained above $0.4746 despite the delay in the lawsuit’s outcome.
John Deaton, a pro XRP attorney associated with SEC vs. Ripple's lawsuit as an “amicus” or friend of the court, has assured the altcoin’s holders that the delay in the outcome is not “strange.” The presiding Judge Analisa Torres has not issued a ruling in the lawsuit in the past seven months, however, an outcome is expected soon.
The final verdict in the SEC vs. LBRY case was released earlier this week, raising concerns in the community of XRP holders.
Also read: XRP on-chain metrics predict explosive price rally in the altcoin
John Deaton assures XRP holders that delay in SEC vs. Ripple verdict is “not strange”
Speculation of the negative impacts of the delay in the verdict of the SEC vs. Ripple lawsuit flooded crypto Twitter. Deaton addressed the concerns of XRP holders early on Tuesday, in a recent tweet:
SO MANY PEOPLE CLAIMING SOMETHING IS STRANGE BECAUSE THE RIPPLE DECISION IS ALLEGEDLY TAKING UNUSUALLY LONG.
— John E Deaton (@JohnEDeaton1) July 10, 2023
Here are some FACTS to consider before putting your tinfoil hat on jumping to conclusions.
Deaton explained how presiding Judge Analisa Torres has delayed the ruling by seven months, since both parties filed reply briefs in December 2022. The ruling is expected to act as a catalyst, determining the direction of XRP price in the future, given its impact on the altcoin’s holders.
Deaton acted as amicus in the SEC vs LBRY case as well, and asked the presiding judge to clarify whether LBC token is a security in secondary market sales. Find out more details about it here. Deaton has shared his plan to pursue a similar path following the verdict in the SEC vs Ripple lawsuit. Deaton intends on asking Judge Analisa Torres for a verdict on secondary market sales of XRP, as this remains cause of concern for the token's holders.
Decline in XRP social dominance
XRP’s on-chain metrics from crypto intelligence tracker Santiment reveal a decline in social dominance of the altcoin. Social dominance is a metric that measures the share of the asset among discussions on cryptocurrencies on social media platforms like Twitter.
%20[21.16.39,%2011%20Jul,%202023]-638246874387144261.png)
XRP social dominance vs. XRP price
A decline in social dominance is typically a sign of reduced demand for the altcoin among market participants. While this reduces the selling pressure on the asset, declining social dominance could be considered a precursor of a pullback or correction in the altcoin.
XRP price has sustained above key support at $0.4700 despite the recent events. It remains to be seen whether on-chain indicators for the altcoin flip bullish in the short term, driving a recovery in XRP price.
SEC vs Ripple lawsuit FAQs
Why are the US Securities and Exchange Commission and Ripple litigating?
The United States Securities and Exchange Commission (SEC) brought charges against Ripple and its executives alleging that the cross-border payment settlement firm raised more than $1.3 billion through an unregistered asset offering of the XRP token. Ripple argues that XRP should not be treated as a security or an investment contract, just like the SEC looks at Bitcoin or Ethereum, citing views from former SEC Director of Corporation Finance William Hinman.
When did the SEC vs. Ripple court case start?
The SEC charges were made public in December 2020. The long-running litigation, presided by Judge Analisa Torres, seems to be close to its end as both parties fail to reach an agreement.
What are the effects on XRP price?
Ripple is the largest holder of the altcoin XRP. The SEC’s charges against Ripple resulted in a mass delisting of XRP across crypto exchange platforms and a sharp decline in the token’s value, which used to be the third crypto asset by market capitalization after Bitcoin and Ethereum. A positive outcome for Ripple in its case against the SEC would benefit XRP’s price, while a SEC win is likely to weigh further on the asset, experts say.
Which implications could the ruling have on the overall crypto industry?
The final verdict in the SEC vs. Ripple lawsuit is the most highly anticipated in the crypto ecosystem. The lawsuit is expected to set precedent for other open cases that affect dozens of digital assets. A ruling in favor of the SEC would most likely bring further regulation to the sector as it would classify most tokens as securities. On the contrary, Ripple’s win would be interpreted as a validation of the crypto markets and could boost investors' confidence if current legal uncertainties surrounding digital assets in the US are solved.
What about secondary sales of XRP among traders?
The ruling may also include views over XRP secondary sales, which directly affects investors who trade XRP on cryptocurrency exchange platforms. Pro-Ripple attorney John Deaton, who filed an amicus brief in the SEC vs. Ripple case, suggests this matter is likely to be addressed. A ruling stating that secondary sales don't qualify as securities, contrary to what the SEC claims, is likely to be beneficial for XRP.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.