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- In a sudden twist, it’s been revealed that the SEC’s own expert admits that nearly 90 percent of XRP price movement since mid-2018 has been determined by Bitcoin and Ethereum.
- This is another illustration that XRPs are not securities whose prices are determined by Ripple Labs and its executives.
A lawyer and XRP enthusiast has highlighted a recent development in the ongoing U.S. Securities and Exchange Commission (SEC) case that shows Ripple is en route to winning the lawsuit brought against it and its executives. Bill Morgan has noted that the SEC’s expert conceded that since mid-2018, Bitcoin and Ethereum price movement can explain as much as 90 percent of XRP’s price movement.
This is unsurprising as Bitcoin in particular has dictated the price movement of the larger crypto market with few exceptions during altseasons when altcoins traded against the largest and oldest digital asset.
It is clear that Ripple has taken several measures to support XRP prices but not increase them. However, the SEC does not clarify if these measures worked.
The SEC through its expert is trying to show Ripple’s announcements influence XRP’s price not to prove the XRPL is centralized but to prove XRP buyers and holders expect profits from Ripple’s efforts
He also indicated that given the SEC’s argument, Ripple was allowing XRP prices to be controlled by Bitcoin (BTC) and Ethereum (ETH). Ironically, XRP prices are dependent on the outcome of the case brought forth to Ripple. A Ripple win will guarantee an XRP rally while a loss will see the token crash.
But if the SEC’s expert is correct you would need to posit that Ripple is allowing in some way XRP’s price to be controlled by price movements of Bitcoin and Ethereum to maintain Ripple is controlling the price as a centralized actor /3
— bill morgan (@Belisarius2020) April 7, 2023
Attorney Jeremy Hogan has shared his prediction in the wake of this discovery stating that the Judge could rule that sales of XRP from mid-2018 onwards were not securities since Ripple’s actions had no effect on prices. He further adds that in such an outcome, Ripple would only need to pay a fine. The legal clarity would be a major win for U.S. exchanges that would legally be allowed to list Bitcoin and XRP.
SEC concedes XRP is an investment contract
Hogan has also shared some highlights from his own findings now why the digital asset could not be a security, noting that “under the legislative definition of a security, XRP can only POSSIBLY fit under the definition of an “investment contract.” It is not a stock or bond, etc.”
The #1 reason why XRP is not a Security (a thread).
First, under the legislative definition of a security, XRP can only POSSIBLY fit under the definition of an "investment contract." It is not a stock or bond, etc..
Even the SEC concedes this: "investment contract." pic.twitter.com/n9g7ZEos2n
— Jeremy Hogan (@attorneyjeremy1) April 9, 2023
The lawyer continues to add;
In the Ripple case, the SEC has failed to argue that there was an implied or explicit contract of investment. Instead it argues that the purchase agreement is all that is required – and that is all it proves. But that argument tears the “investment” from the “contract”…
In his highlight, Hogan argues that the SEC has little evidence to collaborate its argument that XRPs are securities. Nonetheless, in a reply to a comment, the lawyer warned that the case could take longer than he anticipated a few weeks ago when he stated that the case could come to an end by March 31st.
I was …..wrong on that date.
Just wrong so…now I don't know "wen."
— Jeremy Hogan (@attorneyjeremy1) April 9, 2023
