The crypto currency community anxiously awaits the verdict in the three-year-old lawsuit between Ripple and the Securities and Exchange Commission (SEC).
To review, the government agency claims that Ripple raised approximately $1.3 billion by selling XRP tokens that were not registered as securities.
Since both sides have submitted their final arguments, the community is now waiting for a ruling date. John Deaton, an attorney, advocating for XRP, commissioned a survey (1) asking the XRP users to share their predictions for the case's outcome before the verdict.
Many in the XRP Community Support the Proposed Compromise
An estimated 18,000 people participated in the December 28 poll; among them, 59.2% thought the dispute would be settled amicably, while 40.8% favored a jury verdict.
Deaton, however, voted (2) with the dissenting minority, indicating enough evidence for a trial to be held.
Deaton claims he first mistook the SEC's opposition to the release of the Hinman emails as a settlement indication. The SEC had requested the paper in which the senior staffer referenced Ethereum (ETH) as security be sealed, but the presiding judge denied their request.
Additionally, the attorney implied that SEC Chair Gary Gensler is prepared to accept an unfavorable conclusion in the litigation, given that the Commodity Futures Trading Commission (CFTC) is trying to have total authority on crypto currencies.
The attorney also mentioned that the case could reach a verdict, saying that the SEC's position on crypto currencies may have been vindicated after the FTX collapsed.
“In sum, unfortunately, I think a settlement w/Ripple is not in Gensler’s mindset. I don’t believe he’s going to settle and publicly agree that ongoing and future XRP sales, including in the secondary market, are non-securities. And Ripple won’t settle unless the SEC so agrees.”
Problems with Determining a Concluding date
On the other hand, defense counsel James Filan has speculated that a ruling will be made on or before March 31 if an out-of-court settlement is reached. Meanwhile, each side has its vision of how the case will turn out, with attorney Jeremey Hogan laying out four potential conclusions.
Charles Hoskinson, the creator of Cardano (ADA), initially predicted that the dispute would be resolved on December 15. Members of the Ripple community attacked Hoskinson after the deadline passed, leading him to decide he would no longer be discussing the topic.
Meanwhile, the court allowed Paradigm, a crypto currency investing firm, a motion to intervene. The SEC has applied to seal records that include the names and personally identifiable information of SEC experts and XRP investor declarants, personal and financial information, and confidential SEC records showing debate and discussion by SEC officials.
The Analysis of the XRP Price
As of this writing, XRP was going at $0.3437, up 1.8% in the previous 24 hours. Note that the token is still trying to breach critical resistance levels on its way to $0.40.
The future of XRP could be affected by the decision in this case. For example, if the blockchain company prevails in the case, this may be seen as bullish for XRP. Conversely, if a judge rules that XRP is a security, it could send a bearish signal to the market.