Will the Ripple Lawsuit Determine the Fate of Bitcoin and Other Cryptos?

John Deaton, a prominent attorney and passionate advocate of XRP, strongly believes that the ruling in the ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC) will have a profound effect on the cryptocurrency world.

Deaton believes that a ruling favorable to Ripple will not only trigger a significant price increase in XRP, but will also have a positive knock-on effect on other cryptocurrencies, including heavyweights like Bitcoin and Litecoin.

Ripple lawsuit has huge consequences for the crypto market

John Deaton, responding to a comment on Twitter on July 1, underscored the critical importance of the pending lawsuit and its potential ramifications for the entire crypto market. In his view, if the court rules in favor of the SEC, the current regulatory headwinds will continue, potentially jeopardizing the growth of the US crypto sector.

Deaton warns that a ruling detrimental to XRP would not only be detrimental to this particular cryptocurrency, but could have a damaging domino effect on other cryptocurrencies. This even applies to Bitcoin, which the SEC has explicitly declared to be a commodity. Deathon said:

Judge Torres’ decision is becoming more important by the day. If the ruling is negative for XRP (note, I specifically say XRP, not Ripple), it will provide more political support for the anti-crypto campaign of Gensler, Warren, and Brad Sherman. But if the ruling is favorable for XRP, then that is good news for other cryptocurrencies.

SEC’s tough approach: Crypto exchanges Binance and Coinbase under fire

The SEC has taken strict policies against cryptocurrencies in recent months, suing Binance and Coinbase, two of the world’s largest cryptocurrency exchanges. In their lawsuits, they allege that both platforms facilitated the trading of unregistered securities, with some coins, such as Cardano, Solana, and Algorand, being specific examples.

Binance and Coinbase are now in a legal dispute with the regulator. This confrontation not only affects the companies involved, but also the wider crypto community, which now anticipates a lengthy litigation that may eventually provide regulatory clarification.

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Only a few tokens will survive

However, the SEC’s current actions are also causing concern. Some crypto enthusiasts in the United States are expressing concern that if the community does not adequately resist the regulator’s actions, they will be restricted to trading only a select few tokens. This includes Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, among others. This is exactly why these tokens have performed so well in recent times.

These coins have an important common feature: they are among the oldest projects in the crypto world. With the exception of Ethereum, which recently switched to a proof-of-stake consensus mechanism, the remaining networks are based on proof-of-work systems. The actions of the SEC therefore not only affect the current market, but also the technological developments within the crypto sector.

Conclusion

In light of ongoing legal proceedings and regulatory challenges in the crypto market, the importance of the ruling in the lawsuit between Ripple and the SEC is becoming increasingly apparent, according to lawyer John Deaton. The ruling could have major consequences not only for Ripple and XRP, but for the entire crypto sector.

A positive statement for Ripple could boost other cryptocurrencies, while a negative statement could have the opposite effect. Moreover, the latter scenario could bolster political support for anti-crypto campaigns.

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