There is something new in the seemingly endless legal dispute between Ripple Labs and the SEC: If the case is closed, it could trigger a supply shock at Ripple’s XRP that will cause prices to explode. That’s what attorney Jeremy Hogan thinks.

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Positive development for XRP

Just a few months ago it looked really dark for Ripple’s XRP: While most coins could look forward to double-digit growth in the ongoing bull run, the token remained in a kind of shock stare. The ongoing process of the Securities and Exchange Commission (SEC) caused enormous uncertainty among investors. Many feared the worst for the embattled cryptocurrency. Now, however, the tide seems to be turning. And as one legal expert puts it, the bottom line is that the XRP course could even benefit from the process.

As Daily Hodl originally reported, cryptocurrency lawyer Jeremy Hogan now believes: Ideally, the litigation with the SEC could even have a positive impact on Ripple’s XRP. Because in the case of a settlement agreement, Ripple would have to pay a penalty to the Supervisory authority. And this could involve conditions that prevent or restrict Ripple from selling XRP out of escrow as it has done so far.

According to Hogan, such a development could “indeed” limit the amount of XRP that comes to the market – or the speed at which it does so. Sales to Section D or corporate buyers could then not be placed on public exchanges for six months or even up to a year. The lawyer estimates that a settlement with a corresponding clause will limit the XRP offer in the market “for years to come”. This, in turn, could lead to a so-called supply shock when demand increases, with the XRP price exploding.

Background to the lawsuit against Ripple and two of its executives: The SEC alleges that the defendants “raised more than $ 1.3 billion through an unregistered, ongoing securities offering for digital assets.“ Ripple, however, is combative, denies the allegations and insists that XRP is not a security.

Why Ripple could win

Ripple Labs has filed a motion to force the” Securities and Exchange Commission ” to hand over internal documents related to the cryptocurrencies BTC, ETH and XRP. Background of the step: The SEC had decided in 2015 that Ethereum is sufficiently decentralized and therefore does not violate security laws. Based on this assessment, the regulator gave the green light to Bitcoin and Ethereum. This is what Ripple’s defense wants to take advantage of – because it emphasizes that the SEC must decide the same way with Ripple.

Bitcoin bull Tone Vays believes that it is precisely this assessment by the SEC that will ensure that Ripple wins the case:

“The colossal FAILURE of @SEC_News, which believes that ETH is” sufficiently decentralized ” and that Ethereum is NOT going after it even though it violated security laws in 2015, will doom @SEC_Enforcement in the XRP #Ripple case.”

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