The dependence of XRP investors on Ripple's legal actions to win the SEC lawsuit was stressed by Bill Morgan.
The legal community is abuzz with speculation as the verdict in the ongoing legal battle between Ripple and the US SEC is expected by May 6. While some anticipate a verdict by then, others concede that the SEC has one valid claim against Ripple.
According to Bill Morgan, a lawyer who is supportive of XRP, the SEC may be right about investors buying XRP with the expectation that Ripple will win the case against the SEC. The case centers around the SEC's allegations that XRP is an unregistered security.
Reportedly, the SEC's expert has acknowledged that most of XRP's returns from mid-2018 to the present are attributable to Bitcoin and Ethereum. However, the SEC maintains that XRP investors are reliant on Ripple's efforts for profits.
Morgan's statement implies that some Ripple and XRP supporters acknowledge the validity of some of the SEC's claims, even though they contest the overall legal case against the cryptocurrency.
According to Bill Morgan, a lawyer who supports XRP, Ripple could be held responsible for the fluctuations in XRP's value if the SEC's expert analysis is accurate. Morgan also raises concerns about the decentralization of XRP and the role of Ripple in its market performance. He believes that Ripple's centralized position could give it control over the price of XRP, which would contradict XRP's decentralization.
Morgan's statement suggests that if the SEC's claims are valid, Ripple may have some involvement in controlling the price of XRP. However, Ripple's control would be limited to the influence of Bitcoin and Ethereum on XRP's price. Morgan's argument highlights the need to consider Ripple's role in the market performance of XRP and its impact on the decentralization of the cryptocurrency.
Bill Morgan supports this claim of the SEC against Ripple
According to Bill Morgan, the SEC's claim that investors rely on Ripple's legal efforts to reap gains rather than the company's business efforts is an acknowledgement of the weight that the outcome of Ripple's legal battle against the regulator holds in terms of the value of XRP. This highlights the critical role that the lawsuit plays in shaping the future of cryptocurrency and its investors.
Morgan points out that investors relying on Ripple's influence to bolster the value of XRP have little to do with the efforts that the judge in the historic Howey case had in mind. He suggests that the SEC's claim acknowledges this paradox and that Ripple may be held accountable for the price fluctuations of Bitcoin and Ethereum impacting XRP's value if the regulator's expert analysis is accurate.
Morgan also raises questions about the decentralization of XRP and the role of Ripple in its market performance, given Ripple's position as a centralized entity that can control the price of XRP. This underscores the importance of the ongoing legal battle between Ripple and the SEC, which has significant implications for the future of cryptocurrency and its investors.
Experts opinion regarding the legal battle
The ongoing legal dispute between Ripple and the SEC over the classification of XRP as an unregistered security has led to discussions among XRP supporters about the Howey Test's third and fourth prongs. This legal framework is utilized to evaluate whether an asset meets the criteria for an investment contract.
Pro-XRP lawyers, such as Bill Morgan, John Deaton, and Jeremy Hogan, have expressed skepticism about the SEC's argument that XRP is an investment contract under the Howey Test. They have raised doubts about the regulatory body's reliance on this framework to classify XRP.
John Deaton has questioned whether Judge Torres would view Ripple's actions as an offering, which is another legal classification. Deaton has expressed doubt about Ripple's argument that there is no underlying contract to qualify XRP as an investment contract. He believes that while this argument may pass in the Second Circuit and Supreme Court, Judge Torres may not be swayed by it.
Deaton forecasts verdict date for Ripple vs. SEC legal battle
John Deaton, who represents thousands of XRP holders in the Ripple vs. SEC lawsuit, has shared his prediction on when the summary judgment may be delivered. During an interview with Thinking Crypto, Deaton anticipates that Judge Torres will announce her ruling on or before May 6, based on her past ruling timeline. He also notes that the summary judgment may be issued at any time and could be delayed until June 1 or later. As the crypto community awaits the outcome of the case, XRP holders and others in the industry will be closely monitoring any updates on the ruling.
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