Melker asks XRP enthusiasts to imagine a scenario where the regulator loses its lawsuit against Ripple.
As the crypto community awaits the summary judgment for Ripple vs. SEC lawsuit, many stakeholders have taken to Twitter to discuss the possible outcomes of the case. Many believe Judge Analisa Torres could rule in the SEC’s favor due to the agency’s success in the LBRY lawsuit.
Like Ripple, LBRY was also charged with offering unregistered securities in the United States. Last year, a federal judge ruled in favor of the Securities and Exchange Commission against LBRY. This sparked fear among many XRP community members who feel Ripple could suffer a similar fate when Judge Torres issues her ruling.
With this adverse reaction gaining momentum, prominent cryptocurrency YouTuber Scott Melker, popularly called the “Wolf of All Streets,” called on his 889K Twitter followers to imagine the SEC losing against Ripple.
Imagine if the SEC loses to Ripple in court.
Just imagine.
— The Wolf Of All Streets (@scottmelker) March 29, 2023
Melker’s Tweet Sparks Mixed Reactions
The tweet has sparked reactions among crypto community members. For some, a win for Ripple would make XRP the only crypto asset with regulatory clarity in the United States.
So then XRP is the ONLY crypto with regulatory clarity?
— dc (@PickyEaterGuy) March 29, 2023
However, some enthusiasts still believe Ripple does not stand a chance of winning the lawsuit because the SEC has always been victorious against crypto companies.
They've never lost against a cryptocurrency yet lol xrp definitely won't win
— brassic.eth (?, ? ) ?️ (@sommonero) March 29, 2023
Top US Attorneys Hope For Ripple Victory
Meanwhile, legal analysis from top lawyers, including Jeremy Hogan and John Deaton, show that Ripple has a better fighting chance than other crypto companies the SEC has won against.
Both pro-XRP lawyers believe summary judgment will not be granted in the SEC’s favor due to the third and fourth prongs of the Howey Test- “expectation of profit” “to be derived from the efforts of others.” For context, the Howey Test is a legal test used to determine whether a transaction qualifies as an investment contract.
It is worth noting that the SEC claimed that XRP investors expected to make huge returns from the efforts of the leading blockchain company. However, the SEC failed to provide substantial facts backing its claim. The agency even withdrew the testimony of one of its experts for providing a false report without interviewing XRP investors.
As a rebuttal, Ripple filed 3,000 affidavits from XRP investors who disclosed that they never relied on the company to make gains. The Silicon Valley tech company also featured an expert witness who provided facts showing that market forces were responsible for XRP price movements.
It bears mentioning that Ripple has a better fighting chance than other blockchain-related companies that suffered defeat against the SEC. Despite having the finance to hire the best legal counsels in the US, Ripple still received support from top blockchain companies, including Coinbase, SpendTheBits, Investor Choice Advocates Network (ICAN), etc.
Of the 16 entities that filed amicus briefs in the lawsuit, 13 supported the blockchain company against the SEC.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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