Pro XRP attorney John Deaton notes delay in SEC vs. Ripple lawsuit outcome, addresses XRP holders concern
- 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.
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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.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
