Ripple has been embroiled in a legal battle against the Securities and Exchange Commission for more than a year. This lawsuit has been very bad for the XRP price, but slowly but surely the case is coming to an end.
It is striking that Ripple is gaining more and more procedural victories. According to various legal experts, the judge’s ruling could therefore turn out to be positive for the crypto company.
Two crucial decisions will be made at the end of the week
So even though Ripple has had some procedural victories, exciting days are ahead, Fox reporter Eleanor Terrett told me.
According to Terrett, we are currently waiting for two important decisions. First, Judge Netburn’s decision on whether Hinman’s emails and documents fall under attorney-client privilege. And second, the judge’s decision on the SEC’s motion to block attorney John Deaton’s interference and amicus brefing.
an amicus brief on the agency’s expert witness Patrick Doody. @JohnEDeaton1 tells me both decisions are imminent and could be made by the end of the week.
— Eleanor Terrett (@EleanorTerrett) June 21, 2022
According to the Fox reporter, the judge will make a decision on these two crucial points by the end of this week.
What does the outcome mean for Ripple?
The outcome of the 18-month-long lawsuit is critical to Ripple Labs, XRP investors, lawmakers and the entire crypto world at large. If the SEC wins the lawsuit, the XRP token will be considered a security. This will most likely start a chain reaction in the crypto world. Many more other crypto projects will then be sued by the SEC to classify those tokens as security as well.
It would also be dramatic for the XRP price. It would mean that no crypto exchange in America will ever re-list the token. There is therefore a good chance that the Ripple price will fall significantly if the lawsuit ends badly for the crypto company.
On the other hand, if Ripple wins or settles the lawsuit, that would be very good news for the XRP price. American crypto exchanges will then start selling the XRP token again and there is a good chance that the price will rise significantly.