Following on from a previous article with regards to Ripple Labs deposition of Hinman, it was evident that the SEC were desperate to stop it from going forward (1). The SEC's complete resistance to William Hinman's Deposition had many on lookers thinking that the SEC clearly had something to hide. The deposition took place behind closed doors and what transpired during the deposition was under seal i.e. not to be disclosed to the public. (2)

Jeremy Hogan (legal expert) has advised that Ripple labs strongest defense against SEC, who claim that XRP tokens issued by Ripple Labs are a security, was to show the courts that XRP price action was independent of Ripple Labs. (3)

Hogan goes on to say that XRP price action is more closely correlated to the Likes of Bitcoin (BTC) and Cardano (ADA) than that of Ripple Labs. By definition the XRP token does not behave like a security. Furthermore he quotes a research paper which shows that XRP is strongly correlated to ADA by as much as 70%, so if ADA takes a dive XRP follows a similar price action to some extent. (3)

The burden of proof is on the SEC to show that XRP is a security, meaning that any business activities perfomed by Ripple Labs whether it be contract deals/losses or partnerships would have an impact on the price of XRP. This will not work out so well for SEC as price action history for XRP shows that this is clearly not the case. BTC and ADA clearly has more influence over XRP's price action than anything Ripple Labs has ever done, more over XRP retail investors have never sought out Ripple Labs busines activity to determine XRP's value. (3)

Its now starting to become clearer that SEC may very well have to let this one go, but for political reasons will either keep the lawsuit going or in the end will just have to settle with Ripple Labs.