John Deaton, a lawyer and one of the vocal proponents of XRP, is convinced that the outcome of the ongoing case between Ripple, the blockchain company, and the United States Securities and Exchange Commission (SEC) will impact the cryptocurrency markets depending on the judge’s ruling. In his assessment, any ruling that favors Ripple will not only see XRP rally, but other cryptocurrencies, including Bitcoin, Litecoin, and the rest, will follow suit.
XRP is the native currency of the XRP Ledger (XRPL) which the regulator claims is an unregistered security. Ripple used it to raise billions in their initial coin offering (ICO).
Ripple-SEC Ruling Will Impact crypto
While responding to a comment on Twitter on July 1, Deaton emphasized the significance of the case and the ramification it will have on the broader cryptocurrency markets.
The lawyer opines that should the presiding judge rules to support the SEC, the current momentum against cryptocurrencies, with the backing of politicians, will only continue, potentially hindering the growth of the industry in the US. He notes how any unfavorable ruling will be bad for other coins, including Bitcoin, which the SEC has clarified is a commodity.
Judge Torres’ decision gets potentially more as each day passes. If it’s bad for XRP (notice I said XRP and not Ripple), then the status quo with more political momentum to Gensler, Warren, and Brad Sherman’s anti-crypto campaign. But if it’s great for XRP, then great news for other tokens.
XRP Stabilizes, crypto Supporters In The US Concerned
The SEC has been cracking down on cryptocurrencies in recent months, suing Binance and Coinbase, two of the world’s largest cryptocurrency exchanges in the world. In their lawsuits, they claimed that the two ramps have been facilitating the trading of unregistered securities, listing a few coins, including Cardano, Solana, and Algorand, as examples. Binance and Coinbase are respondents to the regulator, and the community expects a protracted court case that could, in the end, bring regulatory clarity.
Some crypto supporters in the United States fear that if the community doesn’t fight back against the actions of the regulator, they will be left to trade a limited number of tokens, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. A common denominator across these coins is that they are among the oldest projects. Besides Ethereum, which recently transited to a proof-of-stake consensus system, the rest are proof-of-work networks.
Presently, XRP prices are stable and perched in the top 10. While there were initial gains after the SEC was ordered to unseal documents about William Hinman’s speech in 2018, prices are below $0.60, down roughly 3% in the last trading week.
Featured image from Canva, chart from TradingView