JAKARTA The Ripple vs SEC (US Securities and Exchange Commission) case has finally begun to come to light after a trial that took more than two years. Both parties have submitted a summary trial application last August.
Summary judgment is a legal process in which one party in a case asks the judge to decide the case without the need to hold a trial. Usually, this is done when there are no material facts that are disputed and there are only legal questions that must be resolved.
The SEC argues that Ripple Labs and its two executives have violated securities laws by selling XRP as unregistered securities. Ripple Labs argues that XRP is not a security, but a digital asset used as a means of payment.
The summary judgment decision could have a major impact on the future of XRP and the crypto industry as a whole. If the judge decides that XRP is a security, then Ripple Labs must stop selling XRP and face heavy legal sanctions. It can also open the door for the SEC to demand other crypto projects that may be considered selling unregistered securities.
If the judge decides that XRP is not a security, then Ripple Labs can continue its operations without interference from the SEC. It can also provide legal certainty for the crypto industry and encourage innovation and adoption of digital assets. In addition, this can increase investor confidence in XRP and other tokens that have similar characteristics.
The price of XRP has increased significantly in recent weeks, hitting its highest level since May 2018 in early November. A number of crypto analysts believe current conditions reflect market expectations regarding the possibility of Ripple Labs winning or reaching a settlement with the SEC. However, the price of XRP can also change drastically depending on the outcome of the summary judgment decision.
Some experts estimate that if Ripple Labs wins, the price of XRP could jump to 100 percent or more. If Ripple Labs loses, the price of XRP could fall by 70 percent or more.
According to Blockworks, Ben McMillan, founder and chief investment officer of IDX Digital Assets, said that the XRP price, as well as the broader alt coin market, could swing wildly after the decision.
"The results that are profitable for Ripple can easily make XRP rise 100 percent or more," he told Blockworks via email. "On the other hand, depending on the specifications, unfavorable decisions can make XRP retest the range of 0.30 US dollars or lower."
In addition, the decision could also affect other token prices related to XRP or have a business model similar to Ripple Labs.
Therefore, crypto investors and users must pay attention to the development of the SEC vs Ripple Labs case and prepare for high market volatility. The summary judgment decision is expected to come out in the near future, although the exact date is not yet known.
At the time of writing, XRP coins are trading at IDR 8,048 based on Coingecko data. In the past week XRP price performance increased 24.1 percent. Meanwhile, XRP's all-time high price (ATH) was inscribed on January 7, 2018. At that time XRP broke Rp45,650 per coin.
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