The verdict in the Ripple vs. SEC lawsuit is anticipated soon, and the cryptocurrency community is anticipating it with great fervor. Marc Fagel, a former regional director of the Security and Exchange Commission (SEC) ‘s San Francisco Regional Office, claims that a judge will soon make a decision about the XRP lawsuit. The outcome of the case, Fagel believes, might significantly affect XRP’s price, causing it to hit the $10 mark.
Fagel started by recalling that in late January 2020, the SEC filed a lawsuit against Ripple company, its chairman Chris Larsen, and its CEO, Brad Garlinghouse. The SEC claimed that Ripple fraudulently raised over $1.2 billion by marketing unregistered securities called XRP.
The legal team for Ripple has stated that a comment by William Hinman, the former head of the SEC’s Division of Corporation Finance, led to misunderstandings regarding the classification of XRP. Hinman claimed that Ether, the Ethereum coin, needed to be more secure in 2018. According to Ripple and its legal staff, this statement misled both them and others into thinking that XRP was also not a security.
In a recent interview, Marc Fagel emphasized the distinctions between Ripple’s case and other recent SEC investigations. Fagel cited instances in which the SEC had penalized businesses for raising money through initial coin offerings (ICOs) without designating those funds as securities. The SEC has claimed that XRP is a security in the instance of Ripple.
Further investigation shows that introducing the “Hinman docs” has brought another concept to XRP; hence, it’s the latest strong wave of recovery. It was also gathered that the uptrend didn’t last; although the coin’s tenacity was noticeable, it succumbed to the recent market downturn.
In a recent tweet, Michael Arrington, the creator of TechCrunch’s digital news website, expressed his opinion that XRP may hit $10 if Ripple wins the lawsuit. Arrington added that he had had XRP for a long time and believed in the future potential of the cryptocurrency.
Anxiety Feels The Cryptocurrency Market, As The Price Reacts
Some industry professionals has become more cautious about the recent revelation by the former SEC boss. Some have pointed out that even if Ripple wins the lawsuit, the price of XRP may not necessarily rise significantly, as claimed by most industry experts. Inside Bitcoin’s Kate Irwin, when contacted on the matter, commented that the price of any particular digital asset might change due to various variables in the notoriously volatile cryptocurrency market.
He further explained that the outcome of the Ripple vs. SEC litigation would significantly impact how the cryptocurrency market develops in the future. According to him, if Ripple is found to have broken securities laws, other cryptocurrencies may come under more regulatory scrutiny.
According to the latest market indicators, the most recent price analysis reveals that the price of XRP has slumped below the $0.5 price mark three times in the last three days. But it has also bounced back at each point.
The data also shows that the coin is hovering around the 290-day Exponential Moving Average (EMA) level, and the first time in almost three months. Arman Shirinyan, a market analyst with U.Today, while commenting on the trend, said that these are contributing factors to the better performance of the XRP.