- XRP price rallied by 9% in the last four days following Judge Torres' denial of SEC's motion to seal the Hinman speech documents.
- Lawyer John Deaton stated that the jury plays an important role in determining Ripple's win in the lawsuit.
- Deaton's tweets were in response to Hogan's comments saying a Fair Notice Defense could bode badly for Ripple.
One of the biggest driving factors for the XRP price rally or decline is the ongoing lawsuit Ripple is facing against the Securities and Exchange Commission (SEC). The recent development in the case in favor of the cryptocurrency has presented an optimistic outlook for investors who are looking forward to bullish price action.
Ripple needs to meet these conditions to win the lawsuit
Pro-XRP lawyer John Deaton, in a Twitter thread, discussed what needs to go right and how in order for Ripple to win this case. Deaton noted that without knowing the 56.1 statements and counter statements filed by the parties, it is difficult to speculate what specific evidence has been submitted by the SEC or Ripple.
But one particular standout in the barrage of evidence was Ripple's argument stating the presence of an underlying contract is necessary before the Howey test can be applied. Deaton noted that Judge Torres would most likely disagree with the contract argument.
This inadvertently will lead to the Judge rejecting the argument of a contract imposing a post-sale obligation on the seller, which in this case is Ripple.
Deaton's tweets were in response to lawyer Jeremy Hogan's tweet about the Judge moving the Fair Notice Defense (FND) issue to trial would bode badly for Ripple. Hogan stated,
"One Caveat: from her discussion of the Hinman emails, it seems to me that the Judge has not ruled on the Fair Notice Defense issue. And that could be because she hasn't got there yet (that's normally done last) but it could also mean she is NOT granting the SEC's motion.
Which also means the Judge could be moving the FND issue to trial - which would bode bad for Ripple because the only reason you'd be having a trial on FND is if Ripple lost on the Section 5 violation.— Jeremy Hogan (@attorneyjeremy1) May 17, 2023
Sorry to start a new thread - I had too many words to say. Blue check time?
Citing Hogan's tweet, Deaton stated that this is why Ripple's FND is an insurance policy. If the Judge finds Ripple violated this, then the jury must decide if Ripple had fair notice.
Adding to the same, Deaton said that if Ripple gets tagged for early XRP sales, but ODL and secondary market sales are found to be non-securities, then the jury must decide whether those early sales should be excused because Ripple lacked fair notice that XRP sales were effectively illegal (unregistered). Such an outcome can only be described as a TOTAL VICTORY for Ripple.
Regardless, Ripple is continuing in its approach of extensively establishing itself through its use cases. Earlier today, on May 18, Ripple was selected to be part of the Hong Kong Monetary Authority's Inaugural e-HKD Pilot Program. The blockchain will showcase a real estate asset tokenization solution for the program.
All of this will, not only in the future but also in the present, prove to be beneficial for XRP price and investors.
XRP price gain banks on Ripple's victory
Over the last four days, XRP price has rallied by 9%, trading at $0.461 as Judge Torres denied SEC's motion to seal the controversial Hinman speech documents. Thus going forward, investors can expect an uptick in the price action provided the lawsuit continues to be in favor of Ripple.
XRP/USD 1-day chart
However, losing the support of $0.422 could trigger a potential correction to $0.348 or further lower to $0.288.
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