XRP, the seventh-largest cryptocurrency by market cap, saw a trading volume spike of over 50% in the last 24 hours. This surge comes as the SEC revealed plans to submit its principal brief in the Ripple appeals case by January 15, 2025. Legal experts and the XRP community on X are actively debating the token’s regulatory status and its potential price implications amid the ongoing legal developments.
Bill Morgan, a notable legal voice in the XRP community, in a recent tweet claimed that XRP’s value is tightly linked to Ripple’s efforts, effectively making it Ripple’s security instrument.
“Without XRP, one cannot benefit from Ripple’s efforts, and with XRP, one cannot be unaffected because its market value reflects Ripple’s actions.” He Says
Morgan, however, strongly disagrees, arguing that this statement lacks evidence from the SEC v. Ripple case, including expert or lay testimony, or evidence of Ripple directly promoting XRP to retail investors.
Do Ripple’s Actions Impact XRP’s Price?
Morgan emphasized that many long-term XRP holders reject the idea that Ripple’s efforts have positively influenced XRP’s price over the last seven years. Instead, he pointed to a common belief that Ripple’s periodic sales of XRP from escrow have suppressed its value rather than boosting it. This contrasts sharply with the article’s premise that Ripple’s actions drive XRP’s market performance.
Legal Theories vs. Evidence
Bill Morgan acknowledged that the article’s legal theory might have some merit but criticized it for relying on flawed logic and unsupported assumptions. He emphasized that court cases are decided based on evidence, not theories. Unless the SEC claims in its appeal that the judge missed key evidence in the Ripple case, Morgan believes this argument is unlikely to change the outcome.
Responding to Morgan, the article’s author, Joe Sho, clarified that his work isn’t a standalone theory but an analytical take. Morgan appreciated the clarification but pointed out that the XRP community is likely more focused on larger regulatory and market issues than on such detailed legal debates.
Ripple’s Influence: Still Unclear
This discussion underscores the ongoing debates around XRP’s status and Ripple’s influence on its value. As the SEC’s legal battle against Ripple unfolds, opinions remain divided within the XRP community about the true drivers of XRP’s price and its regulatory classification. For now, the case serves as a litmus test for the future of cryptocurrency regulation in the U.S.
XRP Price
Currently, XRP is correcting after reaching $1.15. It’s now trading below $1.10 and may drop to the $1 support level before potentially rebounding. Despite this, the market outlook remains positive, with the next target at $2 as long as XRP stays above $0.785. XRP continues to dominate cross-border payments, further strengthening its position in the crypto world.
