The ongoing legal dispute between Ripple and the Securities and Exchange Commission is being closely watched by the cryptocurrency community. The future of Ripple and its XRP token is still up in the air following the filing of the respective summary briefings by the two parties.The cryptocurrency community has been observing another nearly related case to predict what would happen to XRP before the summary decision. Possible resolutions in the Ripple case have been provided by the dispute between the SEC and the blockchain-based sharing platform LBRY in particular. Then there was the SEC’s argument that the expert evidence of a Ripple expert on treatment of XRP under other legal or industry regimes is irrelevant. The evidence is that based on its economic characteristics it is not a security /4— bill morgan (@Belisarius2020) February 1, 2023 Interestingly, LBC’s value increased as a result of the most recent ruling. Bill Morgan, an attorney, and observer of the cryptocurrency market said that if the SEC loses the case, XRP could follow the same price trajectory.In a series of tweets, Morgan also noted one finding from his assessment of Ripple’s response to the SEC’s Daubert challenge: the organization’s inconsistencies, or “typical change of position.” He provides examples and said that the first expert opinion on the viability of Ripple’s cross-border remittance product alleged that ODL was not a legitimate use case for XRP and questioned the company’s usage of the technology.From @JWVerret last October re GAAP and #XRP: “It would be the functional equivalent of telling Google they must list “the internet” as an asset on its balance sheet because Google’s value is closely connected to the internet.” CryptoLaw (@CryptoLawUS) February 2, 2023 He wrote in one of the tweets, “The SEC argued that because despite other regulatory treatment it was not impossible (like any asset) for XRP to be sold as a security the expert evidence was irrelevant. Ripple’s response included pointing out that even the GAAP.”Jeremy Hogan, a fellow legal expert, pondered what might happen to XRP at the same time in light of the fact that LBC’s value increased by about 100% in just one week despite the parent company’s lack of a complete victory in the litigation. Legal experts are still guessing on the likely verdict and its effect on the cryptocurrency market because the ruling is yet to be made.
