The Ripple-SEC legal tussle has sent shockwaves throughout the cryptocurrency industry, and everyone is eagerly anticipating the outcome.
In the midst of this tension, Nick Regan, an expert in the crypto space from Cheeky Crypto, delves into the latest developments and what they could mean for the wider market.
Deaton vs. SEC’s Former Attorney
The Ripple community has been closely following a recent argument between John Deaton, a well-known lawyer in the crypto space, and a former SEC attorney named Marc Fagel. The SEC attorney claimed that Ripple violated Section 5 of the Securities Act and that the agency has a better chance of winning the case. However, he also contradicted himself by saying that Ripple will ‘probably’ win in another discussion. This shows how unsure even SEC’s people are.
Related: Ripple News: Pro-XRP Lawyer Explains How the SEC is Taking a ‘Shorthand’ Approach in the Case
The Infamous Howey Test
Deaton countered the former SEC attorney’s initial argument by emphasizing the significance of the Howey Test. He said that while most initial coin offerings (ICOs) have violated Section 5, the SEC’s case against Ripple is flawed due to its broad approach. In addition, Deaton highlighted that the Howey Test has never been applied to secondary sales of an asset, which further complicates the SEC’s argument.
Ripple Win Could Boost Crypto Industry
According to Nick Regan, a win for Ripple would be beneficial for the entire crypto industry. If Ripple loses, the SEC could potentially use this case as a basis to label other cryptocurrencies as securities, which would have a negative impact on the industry that is starting to enter a bull market after a long and intense bear one. A Ripple win, on the other hand, would set a precedent for defending cryptocurrencies and foster a more favorable environment for growth and innovation.
The XRP Price Outlook
As the legal battle unfolds, Regan analyzed XRP’s price charts and shared his thoughts on its future trajectory. He believes that once the case is resolved, and XRP gains the necessary regulatory clarity, its price could surge significantly. This would likely be driven by the relisting of XRP on US exchanges and increased investor confidence in the asset.
At press time, XRP was worth $0.43 and it has been down by over 5% in the past twenty-four hours.