Robert Steinadler, 2 months ago

XRP price is skyrocketing: Will Ripple’s case soon be settled?

In late 2020 the SEC started a legal battle against Ripple. The authority claims that XRP is an unregistered security. Two of the founders were sued along with the company. Ripple claims that this is not only a fight over XRP but rather a fight on behalf of the whole crypto industry. They argue that should they fail in court then the SEC would come after other cryptos and their founders, too. Some spectators have made a couple of comments on social media that are driving speculations that the case could be settled soon.

Will the case between Ripple and the SEC be settled and what are the implications for the market?

Several lawyers are commenting on the case

There are several lawyers active on Twitter and YouTube who have gathered the XRP community around them giving frequent updates on the situation. One of them is John Deaton who was speculating on Monday that the case could soon be settled. According to him, there is a chance that it comes to an end by this week.

What is even more important is that most of these lawyers are making positive remarks that Ripple has a chance to win this case. While there is no guarantee that Ripple will win these comments are a driving factor in the most recent XRP rally. Today, the XRP price reached a new yearly high of about $0.58. The fact that Bitcoin price still resides somewhere between $27,000 and $28,500 is also influencing the overall sentiment.

Deaton also speculated about the risk-reward-ratio of trading XRP in this situation. Should Ripple succeed in court the price could potentially continue to rally. That being said, should Ripple lose then this could hurt the price.

Why are the lawyers optimistic?

The reason why all these spectators are optimistic that Ripple wins the case is the fair notice defense. Ripple claims that it had no reason to believe that the SEC thought that offering and selling XRP on the US market constitutes a violation. In this regard, the so-called Hinman speech becomes highly important. Hinman gave a speech in 2018 when he was the Director of the SEC claiming that neither Bitcoin nor Ethereum is a security.

Unlike Bitcoin, Ethereum started with an ICO in 2014. Ripple's argument is this: If Ethereum was selling tokens to the public unimpeded then why is Ripple under scrutiny for doing the same thing?

Another breaking news, in this case, is a sidenote in another court case. During the Voyager case, the judge concluded that US regulation is unclear and often contradicts itself. Ripple was trying to claim supplemental authority and use this statement to bolster its defense. Of course, the SEC objected that those statements don’t apply to the case. Despite all the optimistic lawyers one is well advised to wait for the judge to make a final statement on his judgement. This case is settled in court and not on Twitter.

Featured image: © viewimage /

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