In the world of cryptocurrencies, the legal landscape can significantly influence the price trajectory of a digital asset. A prime example of this is the recent landmark ruling in the ongoing case between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs.
On 13 July 2023, Hon. Analisa Torres, a district judge at the United States District Court for the Southern District of New York, gave her ruling in the SEC vs Ripple Labs lawsuit, which was initiated in December 2020.
The U.S. Securities and Exchange Commission (SEC) had filed a lawsuit against Ripple Labs Inc. and its two senior executives, Bradley Garlinghouse and Christian A. Larsen. The SEC claimed that Ripple and its leaders unlawfully offered and sold securities, which breached Section 5 of the Securities Act of 1933. The SEC further accused Garlinghouse and Larsen of aiding and abetting these violations committed by Ripple.
Both parties had submitted their summary judgment motions to the court. After reviewing the case, the court made a decision, partially granting and partially denying the motions from both the SEC and Ripple and its executives.
According to the ruling, the court granted the SEC’s motion for summary judgment concerning the Institutional Sales but denied it for other matters. On the other hand, the court granted Ripple’s motion for summary judgment regarding the Programmatic Sales, the Other Distributions, and the sales made by Larsen and Garlinghouse. However, the court denied Ripple’s motion concerning the Institutional Sales. As for the SEC’s motion for summary judgment on the aiding and abetting claim against Larsen and Garlinghouse, it was DENIED.
Here is what Judge Torres said about the XRP token:
“XRP, as a digital token, is not in and of itself a “contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract.“
This decision has sparked a fresh wave of optimism in the XRP community.
In light of this development, Finbold reached out to several experts from the world of finance to get their insights on XRP’s potential in 2023. Could it reach $5?
Sudhir Khatwani, founder of The Money Mongers, believes that XRP could indeed hit the $5 mark in 2023. However, he also warns of a potential price correction due to the inherent volatility of the crypto market.
Jake Hill, CEO of DebtHammer, also sees the possibility of XRP reaching $5, albeit considering it a long shot. He notes that while the recent court ruling is a positive development, it doesn’t automatically guarantee a surge in XRP’s price.
Carter Seuthe, CEO of Credit Summit Consolidation, is less optimistic. He anticipates a more gradual growth over several years, particularly given XRP’s current price correction below the $1 level.
At the time of writing (i.e. 9:00 a.m. UTC on 28 July 2023), XRP is trading at around $0.709, up 52.52% in the past 30-day period and 109.35% in the year-to-date period.