In a surprise turn of events, Ripple (XRP) supporter and lawyer Bill Morgan revealed a situation that might have major ramifications for the XRP vs. Securities and Exchange Commission (SEC) litigation. Morgan claims that the SEC’s expert has acknowledged that fluctuations in the pricing of Bitcoin (BTC) and Ethereum (ETH) have significantly influenced the price of Ripple’s native currency since the middle of 2018. This new information has the potential to change the result of the case.
Bill Morgan, a lawyer and supporter of XRP proposed a novel notion that may have far-reaching consequences for the current XRP v. SEC case. Morgan argues that Ripple may be unwittingly enabling the price of XRP to be impacted by the price movements of other cryptocurrencies if the SEC’s expert is true and Bitcoin and Ethereum’s prices are responsible for up to 90% of XRP’s price swings.
This assertion, according to Morgan, is problematic for several reasons, including the fact that changes in Bitcoin’s market price similarly impact most cryptocurrencies.
Morgan also notes that investors are pinning their hopes on Ripple’s legal efforts to defeat the SEC’s lawsuit rather than the company’s business efforts or sales. He argues this is different than the type of effort the court in the Howey case intended to protect.
The lawsuit’s outcome could have far-reaching implications for Ripple and the broader cryptocurrency industry, as it will likely set a precedent for how regulators view and classify digital assets.
Following this news, Attorney Jeremy Hogan went to take his predictions according to Morgan’s facts. In his Twitter account, Hogan tweeted that In a potential compromise ruling for the ongoing Ripple case, the Judge could determine that sales of XRP since mid-2018 were not securities.
He added that this decision could be based on the fact that even the SEC acknowledged that Ripple’s actions had little impact on XRP’s price since then. However, the use of the phrase “split the baby” to describe this hypothetical outcome has drawn criticism for its disturbing connotations.
The recent reports come in the wake of Jungle Inc, a representative of Ripple, releasing a letter addressed to the SEC, in which they requested reconciliation.
As per the settlement terms, Ripple has agreed to pay a sum determined by the SEC, deemed equitable for investor protection and education.
