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Armstrong says the SEC has given up in trying to prove the XRP is a security.
Holders of Ripple (XRP) had a good reason to smile in the past few days after the token’s value had a tremendous rally. XRP recorded huge gains in the past few days, rallying more than 50% in one week.
Prominent YouTuber Ben Armstrong, who goes by the brand name Bitboy Crypto commented on what is fueling the value of XRP. Armstrong took to Twitter yesterday to say that XRP is on the rise for multiple reasons.
However, he believes XRP has soared over 50% in the past week because the Securities and Exchange Commission (SEC) has given up on its quest to prove that the coin is a security.
Armstrong added that Ripple enthusiasts are now confident that the worst-case scenario Ripple could face if it loses the lawsuit is a fine instead of a blanket ban from operating in the United States.
“XRP is pumping for multiple reasons. But if I were to pinpoint one… the SEC basically gave up this week trying to prove XRP is a security. People in the Ripple community can be pretty confident now the worst-case scenario is fine,” he said.
Attorney Deaton Reacts
The famous YouTuber’s tweet attracted reactions from various members of the Ripple community, including attorney John Deaton, the founder of Crypto Law.
Reacting to the post, Deaton said the SEC stopped relying on one of its experts, who wanted to prove XRP investors counted on making a profit when acquiring the asset class. He added that the SEC gave up this quest after they acted.
Proving what investors relied on when purchasing XRP was “the only Hail Mary” the SEC had at proving that XRP on secondary markets is security, Deaton said. This also boosted investors’ confidence that the judgment could favor Ripple.
As I said earlier, the SEC chose to NOT rely on experts. They had Expert 1 who was trying to say what #XRPHolders relied on when acquiring #XRP. They gave up using that expert because we acted. That was the only Hail Mary it had at proving secondary market #XRP is a security. https://t.co/KppPSmPpsh
— John E Deaton (216K Followers Beware Imposters) (@JohnEDeaton1) September 23, 2022
It is noteworthy that XRP has been rallying after Ripple and the Securities and Exchange Commission filed their motions for summary judgment, thus suggesting the end of the lawsuit is closer than expected.
More so, several cryptocurrency legal practitioners who have been following the lawsuit went through the recent filings to find out which of the parties is capable of winning the lawsuit.
In a lengthy Twitter thread, attorney Deaton summarized the SEC’s motion and hinted that the commission could fail to prove XRP is a security.
Furthering my tweet discussion w/ @MoonLamboio @Belisarius2020 @attorneyjeremy1 etc.,
THIS IS THE BASIC SUMMARY JUDGMENT ARGUMENT BY THE @SECGov:
“The economic reality: @Ripple funded its business by touting XRP’s profit potential, selling and distributing XRP https://t.co/lStUz1UxWP
— John E Deaton (216K Followers Beware Imposters) (@JohnEDeaton1) September 23, 2022