Quick Securities Ruling Sought by Ripple and SEC – XRP to Soar?
In an effort to avoid going to trial, both the SEC and Ripple Labs Inc. have moved for summary judgment in the case. That was originally submitted in December of 2020, and it’s being updated in 2022. Ripple and the US Securities and Exchange Commission have both requested that US District Judge Analisa Torres of the Southern District of New York issue a summary judgment, a ruling based on the statements and evidence of the parties without a full trial.
Tokenomics & Ripple Price
The price of XRP is currently $0.372711, with a $2.8 billion 24-hour trading volume. XRP has decreased by 4.41% during the past 24 hours. After starting the day at $0.34841, the XPR/USD pair reached a top of $0.34880 and a low of $0.34816. However, the ongoing legal battle between the SEC and Ripple has prevented the price of XRP from rising significantly more.
With a live market capitalization of $18.5 billion, CoinMarketCap is now ranked #7. A maximum quantity of 100,000,000,000 XRP coins is available, but there are now 49,826,021,773 in use.
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Brief Review of the Ripple Lawsuit
In 2020, the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, its CEO Brad Garlinghouse, and its co-founder Chris Larsen, alleging that they sold unregistered securities when they issued $1.3 billion in XRP currency. Ripple, meanwhile, has consistently denied that XRP is a security. A 2013 SEC complaint alleges that Ripple began raising capital through unregistered security offerings of digital assets known as XRP to investors in the United States and elsewhere.
Additionally, it was asserted that Ripple had doled out billions of XRP in exchange for intangible goods like labor and market-making services. Controversy erupted in 2018 when former senior SEC staffer Bill Hinman gave a lecture justifying his position that cryptocurrencies like bitcoin and ether are not securities. Ripple has gathered documents and conversations connected to the speech, despite the SEC’s efforts to shield them.
There has been no discussion of whether or not Ripple’s sale of XRP was illegal despite the parties’ filing of multiple discovery motions over the past two years. The SEC claims that Ripple sold XRP, and that XRP investors bought the cryptocurrency expecting its value to rise over time, based on multiple statements made by Ripple employees.
Price of XRP Soar
When filing his action against the SEC, John Deaton criticized the agency for concealing the XRP price spike that occurred amidst unfavorable investor sentiment. He said that although the price of XRP increased by 10%, the price of LBC increased by 11%. Deaton claims the SEC has voiced reservations about every single one of these tokens.
XRP up 10%, LBC up 11%, DRGN up 5%
All implicated by SEC. https://t.co/11YWHxo2f0
— John E Deaton (@JohnEDeaton1) September 16, 2022
However, the stage of Summary Judgment has been reached in the legal battle between Ripple and the SEC. Positive attitudes toward XRP have risen as a result. Rising hopes for a positive outcome in the Ripple litigation boosted the price of XRP. But the general bearishness in the crypto market was too much for XRP, and it fell into the red.