An attorney supporting Ripple Labs in its XRP lawsuit with the US Securities and Exchange Commission (SEC) says traders will soon experience fear of missing out (FOMO) once XRP reaches $2.
Deaton law firm managing partner John Deaton supposes that only when XRP does 5x will people want it.
“XRP costs 0.48 cents and it’s crazy to think how many people, who refuse to buy it now, will buy it for more than $1. What’s even crazier is that FOMO probably won’t start until $2.
Deaton offers his theory following a federal judge ruling on the use of so-called “Hinman speech” in the case.
In 2018, former SEC director of Corporation Finance William Hinman gave a speech saying that Ethereum (ETH) was not a security.
Ripple has argued that Hinman’s speech is evidence that the SEC has no basis for its claim that XRP is a security.
In May 2023, a federal judge ordered the SEC to release the emails and Deaton say it could be a huge turning point for the matter.
“Here is what I can practically guarantee: If Hinman’s speech had been screened/approved or approved by the SEC Ethics Office, we would have heard about it a long time ago. Being able to say that the Ethics Chief approved my speech would work as a proverbial way to get out of prison.
Last week, Deaton said Ripple’s opposition cites an email from the SEC that there are reasonable grounds for not believing that XRP passes all the factors of the Howey test.
Deaton says about the email,
“The SEC wanted all statements from SEC personnel to be redacted and it appears they all were. What this tells me is that the statement about XRP not satisfying Howey is NOT a direct quote from a senior SEC official – otherwise it would be acted upon.
I have concluded that that statement was made by a market participant independent of Ripple, not the SEC, but that it was referenced by someone in Hinman’s emails, or that the third-party email was forwarded to Hinman or the email group discussing the speech.
I always want my comments to be based on facts, so I’m making this clarification. While not a direct quote from an SEC official, it is still hugely damaging as it shows that XRP was discussed. Someone at the SEC passed this XRP opinion to the email group for a reason.”
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