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XRP Price Changes Driven by Market Forces, Says SEC Expert

Jeremy Hogan highlights that the SEC's expert acknowledges XRP price fluctuations are due to market forces, bolstering Ripple's case in the ongoing lawsuit.
Published on 2022-09-18

XRP Price Changes Driven by Market Forces, Says SEC Expert

The legal battle between Ripple and the SEC has taken a significant turn. Jeremy Hogan, a prominent attorney involved in the case, recently revealed that the SEC's own expert has conceded that XRP's price movements are primarily influenced by market forces rather than Ripple's actions. This acknowledgment could be pivotal for Ripple's defense.

Background of the Lawsuit

The SEC filed the lawsuit against Ripple in December 2020, alleging that the company's sale of XRP constituted an unregistered securities offering, raising over $1.38 billion. The SEC also charged Ripple's top executives, Chris Larsen and Brad Garlinghouse, with aiding and abetting these violations. Ripple has consistently argued that XRP should not be classified as a security, a stance that has been central to its defense.

Key Developments in the Case

Jeremy Hogan, representing Ripple, pointed out that the SEC's expert testimony undermines the regulator's case. The expert's admission that XRP's price changes are market-driven weakens the SEC's argument that purchasers of XRP expected profits, a critical factor in determining whether XRP qualifies as a security.

Implications of the Expert's Testimony

This testimony could significantly impact the outcome of the case. If the court accepts that XRP's value is determined by market forces rather than Ripple's actions, it would bolster Ripple's argument that XRP is not a security. This could lead to a favorable ruling for Ripple, potentially ending the long-standing legal uncertainty surrounding XRP.

Ripple's Growth and Future Outlook

Despite the ongoing legal challenges, Ripple has seen significant growth, particularly outside the United States. CEO Brad Garlinghouse has expressed optimism about the company's future, indicating that clarity in U.S. regulations could further accelerate growth. A positive outcome in this case would likely enhance Ripple's position in the global cryptocurrency market.

The case continues to be closely watched by the crypto community, as its resolution could set important precedents for the classification and regulation of digital assets.

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