A positive outcome for Ripple could encourage fintech companies to flock to the US.
The LBRY vs SEC hearing may impact Ripple’s case and its use of “secondary markets” terminology.
XRP price shows potential for growth with recent bullish news.
Several updates related to XRP have presented a possibility for the cryptocurrency to regain momentum. On the 31st January 2023, a U.S. judge limited the Securities and Exchange Commission’s (SEC) authority in secondary crypto markets, which could set a precedent for securities law in the ongoing Ripple Labs vs SEC case.
The significance of the LBRY result and the SEC allegations
John Deaton, the founder of Crypto Law and a supporter of Ripple, believes that the outcome of the LBRY v. SEC case will have a significant impact on future securities litigation because the SEC used terms related to “secondary markets” in its Ripple lawsuit.
According to the SEC, Ripple marketed XRP without registering it as a security under the 1933 “Securities Act,” which raised money for Ripple Labs and two of its senior executives.
Since XRP was traded on the secondary market and no profits were pooled, Ripple argues that it is not a security and is only a mechanism for facilitating money transactions.
Understanding the Ripple vs. SEC Case’s Resolution
The outcome of the Ripple vs. SEC lawsuit and XRP’s current position in the cryptocurrency market are closely tied. The conclusion of the LBRY case may provide insight into how the Ripple v. SEC case will be resolved, according to the SEC’s most recent reply brief, which made 21 references to the LBRY case.
A favourable judgement for Ripple might entice fintech firms to the United States, while an unfavourable outcome might cause a mass exodus of crypto enterprises and talent.
XRP’s current standing in the cryptocurrency market is unknown. XRP’s price is currently in bearish zone and has been unable to break through the 200-day Exponential Moving Average (EMA) for the past two weeks, despite a 17.3% increase year-to-date (YTD).
Is the upward trend still going strong?
At the time of writing, XRP is trading at $0.3945 and has found support at the 50 and 100-day EMAs. Bullish momentum would need to be initiated by a break of the 200-day EMA, which is now at $0.4147 and could send the price of XRP soaring.
A golden cross, or upward crossover of the 50-day EMA by the 200-day EMA, may mark the beginning of a new uptrend. If this happens, $0.54 would serve as the key point of resistance for the bears. The bulls might push XRP to a nine-month high, the highest level since the Terra Luna crash, if they are successful in breaking through this level.
It is important to keep a careful eye on the resolution of the Ripple v. SEC lawsuit as well as the situation with XRP at the moment. The case’s favourable conclusion and a bullish market trend both have the potential to significantly affect the price of XRP.
On the other hand
A bad outcome in the Ripple case might lead to a mass exodus of crypto businesses and personnel from the US. In this scenario, Ripple has expressed consideration for moving operations to Canada.
It is yet unclear how Ripple Labs and the SEC will resolve their legal dispute.
Ripple’s growth and expansion have not been hampered, despite SEC claims.
Why It’s Important
The outcome of the SEC action against Ripple Labs will have an impact on future regulation of cryptocurrencies generally. It could have an impact on the larger crypto community and create a precedent for how similar issues are handled in the future.