XRP/USD: Ripple Enjoys Rally on Signs it Will Win in Fight Against SEC
- Ripple’s XRP token rose by 25% on news that it looks likely to win its case against the SEC
- Defendants of Ripple have argued that the ruling against the SEC in its case against Voyager should work in their favor.
- The final ruling could prove significant in the SEC’s belief that most cryptocurrencies are securities.
Ripple, one the industry’s older cryptocurrencies, has been embroiled in a lawsuit by the Securities and Exchange Commission (SEC) for more than 2 years – and the space has been watching closely for developments. The SEC’s case against LBRY’s LBC token sent a shiver through the spine of the crypto world, as it was ruled a security in November last year. But this week has brought signs that Ripple could be in a strong position to win its case – something which the market has taken notice of.
What’s happening with the case?
Ripple’s XRP token jumped up by more than 25% on Tuesday on what could be a positive development in its case. Defendants of Ripple drew parallels to the recent bankruptcy case of Voyager, in which the judge had dismissed the SEC’s concerns surrounding Binance purchasing its assets. They claimed that this lends validity to their argument that XRP is not a security. Another factor causing optimism in the XRP token was comments made by the judge, who US regulators seem unable to decide what criteria should be used in determining whether a cryptocurrency is a security.
What happens next?
The ruling could prove hugely influential in determining the jurisdiction the SEC has over the crypto space as a whole. Its chair, Gary Gensler has taken a firm stance on the space – reiterating his view in 2023 that everything other than Bitcoin should be considered a security.
That being said, Gensler has faced criticism for his heavy handedness as some believe a large portion of cryptocurrencies fall under the jurisdiction of the Commodities and Futures Trading Commision (CFTC). Rumors are circulating that the case has already been effectively won in Ripple’s favor, and that it’s just a matter of time before it is made official, and much of the crypto world will be watching closely for the outcome.
Illustration by TradingView
Eyeing the pot of gold across the oceanAfter its successes in the US, one of the OGs of cryptocurrency is looking to set sail for Europe – though the journey could be perilous.
- Ripple is looking to establish a Virtual Asset Service Provider in Ireland, which would eventually allow it to provide its services throughout the European Union. It’s not the group’s first foray across the pond either, already having partnered with Paris-based payments company Lemonway in October.
- The company’s been caught up in a lawsuit with the SEC since 2020, in which they’ve been accused of selling unregistered securities to the tune of $1.3bn. So far however, they haven't been fazed and announced plans to go on a 300-person hiring spree this year.
- The EU’s beginning to look pretty appealing to US crypto companies due to its comparatively relaxed regulation. The much anticipated MiCA (Markets in Crypto-Assets) Bill, which provides a framework for operating in all member-states, will be voted on in February this year.
Christian Lue/ Unsplash
XRP goes all in on NFTsRipple shows it doesn’t have to be serious all the time, doubling down on its NFT community with its own ecosystem.
- Ripple has allocated a whopping $250m towards NFT creators using its XRP ledger to help keep the community afloat during the bear market. In the past, Ripple’s developer funds have attracted some pretty big names including metaverse 9LEVEL9 and sport NFT marketplace Capital Block.
- Ripples is gearing up to launch its own NFT ecosystem in two weeks time. Not everyone’s excited about it though, with frequent users of the chain concerned that the release will increase fees and slow down transaction speeds.
- So far Ripple’s been taking the bear market in its stride, shrugging off the market downturn and even a court battle with the SEC to see 25% gains over the last three months. If the release goes well, those gains might very well accelerate.
Tired of running up that hillAll good things (even price rallies) must come to an end, but some investors think Ripple could still have more to give.
- XRP’s winning streak might be drawing to a close after the involvement of a crypto advocacy group in its court case with the SEC sent the token up almost 40% last week. Analysts reckon that the two-year case might be near its conclusion, which could cause investors to start locking in their gains.
- Traders are still unsure on where the SEC will stand on crypto, and XRP has been getting caught up in the speculation. However, even if the court ruling is positive for Ripple it’s not certain that the token will rise – development on its ecosystem will probably be needed for long-term growth.
- HODLers are trying to look on the bright side, pointing out that the token’s 200-day SMA (simple moving average) is looking pretty stable which means traders aren't looking for the exit just yet. XRP may not need to worry for now, but we know that can all change on a dime in the cryptoverse.
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May the odds be ever in your favorRipple’s continuing to outperform other tokens in spite of its increasingly complicated sparring match with the SEC.
- The Chamber of Digital Commerce will be joining the SEC’s lawsuit against Ripple after being granted approval by the Court of Southern District of New York. As an ‘amicus curiae’, the crypto advocacy group can now provide information and expertise on the case which it stated could have “far-reaching consequences”.
- XRP hasn’t let the court case slow it down, with the token rising by roughly 50% this week. Analysts reckon the reason for the increase might be high numbers of whale transactions and a growing hope that Ripple might emerge victorious from the court battle.
- Ripple’s recent rally even has its competitors ticking upwards. Rival chain Stellar has seen gains of almost 20% this week while Bitcoin and Ethereum suffered respective losses of 11% and 24% since last week. Maybe having the SEC involved is the magic touch?
Illustration by TradingView
Not a ripple but a waveXRP is making its way to new peaks despite a pullback of the general market tide as many hope the token might soon reach the safety of shore.
- Ripple’s native XRP token hit its highest point since May on Tuesday after lifting nearly 30% in five sessions – though to be fair, the token is still down over 50% this year so far, so it’s not all sunshine and rainbows.
- Broad declines in the overall crypto market this week make this little rally all the more intriguing and point to XRP as a standout in the space, as all the chatter on Twitter is noting. Digital asset investors are waiting with bated breath for rate hikes today so market moves for the rest of the week will be closely watched.
- Developments in its lawsuit with the SEC are largely responsible for the action. The battle has been going on for years but both parties are now at the “enough is enough” stage, and have both just filed motions for a summary judgment and argued that the judge has enough info to make a ruling without going to trial.
Show us the emails, GaryAnother week, another bark in the dogfight between Ripple and the SEC – and this time it’s getting down to the nitty-gritty.
- The latest development has a lot to do with a speech made by SEC official William Hinman, where he declared Ethereum a non-security. If that’s the case, then why is Ripple getting treated (and punished) like one?
- Has Hinman forced the SEC’s hand? Potentially. The agency has tried to distance itself from the speech, but now the judge has demanded it pass over all emails and drafts from around that time. If any juicy details are found in the emails, it could prove the SEC acted inconsistently, which would be v bad for their case against Ripple.
- XRP lifted 2.8% on Tuesday after a rocky start to the week for crypto. On a broader scale, XRP has been in a downtrend since Sept 7, and something tells us this may not change until its beef with the SEC is cleared up. Over to you, US legal system.
Dealer’s choiceThe De-Fi market feels the heat with a footnote from the SEC, and Ripple’s just tryna catch some shade.
🔍 Key points:
- Another wave of trouble has swollen on the horizon for Ripple. The SEC’s latest proposal redefines ‘securities dealer’ to include automated market makers (AMM) and algorithm-based trading technology with more than $50m in total assets, potentially putting a few bruises on not just XRP, but the whole of De-Fi.
- The proposal is a bit of a problem for crypto more generally, but it could hurt Ripple’s ongoing dog fight with SEC chairman Gary Gensler over whether XRP is an unregistered security. Luckily for investors, the token pretty much shrugged its shoulders at the proposal, falling barely 0.2% on Tuesday.
- So it seems Gary could be dealing his blow – if a blow constitutes a footnote buried in the 200-page text. Some have called it a sneaky move on the SEC’s part – the proposal doesn’t actually explicitly mention De-Fi, but if it passed it could see many decentralized exchanges hit a wall of SEC registration requirements.
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Ripples of joy after SEC 'win'The Ripple vs. SEC smackdown continues, and while we might not be close to a KO just yet, Ripple has just won a round.
🔍 Key points:
- Ripple’s XRP token went soaring 16% in intraday trading on Saturday to outperform the otherwise flat crypto market, before getting swept up in the negative sentiment and closing the day down over 2%.
- A judge voted in favor of Ripple’s “fair notice” argument. The SEC alleges Ripple’s execs carried out a $1.3bn unregistered securities offering with its XRP sales, but the company wants to argue that it didn't get reasonable notice that it had violated a law – the SEC tried to shoot down that defense, but a judge now says it’s a valid one.
- CEO Brad Garlinghouse called it “a huge win”. He noted that while he thinks the case against him personally should be over by now, he is now confident that all of the SEC’s claims against himself, XRP, and its execs will be dismissed; and expects the final court ruling to be here sooner rather than later.
Ripple flows into exchangesRipple Labs puts its token under selling pressure after locking up millions of XRP in escrow.
- Payments giant Ripple locked 800m XRP in escrow as part of a programmed schedule of withdrawals, 200m of which will be used to cover the blockchains operating expenses, and the rest to be moved to various exchanges.
- It has put pressure on the token, which is on its third day in the red as of Friday morning. The platform has made three transfers to the Bitstamp and Bittrex exchanges, and the spike in the XRP’s circulating supply is increasing selling pressure.
- Elsewhere, Ripple Labs is still navigating its landmark battle with the SEC. There is some good news on that front though, with the company expecting to have a final ruling by April. The result will have far-reaching consequences for the whole crypto industry, so keep your eyes peeled.
vjkombajn / Pixabay
Free the RippleRipple flashes signs of recovery after we get a perky update from its SEC battle.
- Its landmark court battle against the SEC is looking up. Specifically, it was reported that the documents the SEC was reviewing could actually be irrelevant to the case – you can see for yourself when the docs are released publicly later in Feb.
- The token rallied 21% on Monday for its fifth consecutive session in the green. It’s up 40% for February so far, more than making up for last month's 25% losses.
- It’s a big deal in cryptoland, whatever the outcome. A win for Ripple would likely mean louder calls for regulation, and a loss would mean that regulators had a case against a lot of the crypto market. Things seem to be heating up, so keep your eyes peeled.
Milad Fakurian / Unsplash
A buyback’s ripple effectRipple Labs' latest buyback fetches it a new valuation, but its SEC battle still has the fate of the company hanging in the balance.
- Ripple Labs has pulled in a $15bn valuation after announcing a private stock buy-back and boasting its best year to date in 2021. The stock jumped 5% in 24 hours, rebounding from 2022’s crypto sell off.
- Ripple’s in for another blowout year if its latest crypto report is anything to go by, which cites “consistent growth and maturation in conversation” around crypto.
- But that all depends on its ongoing court case with the SEC, which has been dangling over it like the sword of Damocles since 2020. It could lead to crazy fines for the company.
Linus Nylund / Unsplash
Courting the bullsRipple’s CEO is confident that the SEC’s splash is subsiding. Could we finally see smooth waters ahead?
- Brad Garlinghouse sees “good progress” in Ripple’s legal battle with the SEC, and expects the lawsuit to end by 2022.
- It just inked a new deal to create a stablecoin for the Island of Palau, adding to a slew of recent new partnerships that JP Morgan thinks will send the token soaring – but only if it wins its SEC suit.
- It’ll affect the whole crypto industry, but Dogecoin won’t be invited to the winning party if Garlinghouse can help it – he recently blasted its “inflationary dynamics” as bad for crypto.
My personal views on dogecoin aside ;) I think there will be many winners in this industry. I’m bullish on overall crypto momentum for 2022 w/ regulatory clarity and progress in the UK, Singapore, UAE, Japan and others. 2/2
Ripple shares the love with its new Liquidity HubXRP’s Ripple wants to help finance firms bring crypto trading to their customers. Because they’re nice like that.
- The Ripple Liquidity Hub will give firms access to a range of cryptos including Bitcoin (BTCUSD), Ethereum (ETHUSD), Litecoin (LTCUSD), Ethereum Classic (ETCUSD), Bitcoin Cash (BCHUSD)… and, of course, XRP.
- Its a turnkey solution that will leverage smart order routing to source digital assets at favorable prices from market makers, exchanges, and OTC desks, with no pre-funding required.
- The debut partner for the alpha version is CoinMe, the first licensed Bitcoin ATM provider in the U.S. with thousands of locations country-wide.
Ripple CEO thinks XRP should be on the podiumRipple CEO Brad Garlinghouse feels hard done by, arguing that the SEC is the only reason Ethereum was able to eclipse the XRP token as the worlds #2 crypto.
As Ripple and the Securities and Exchange Commission continue their war in the courtroom, CEO Brad Garlinghouse is airing some of his grievances against the regulator. At a conference in DC, Garlinghouse claimed that the SEC has given special treatment to Ethereum (ETHUSD) over the years and has treated Ripple unfairly. In December 2017, the XRP token was the most popular crypto by market cap, and apparently the fact that Ethereum (ETHUSD) has gotten the regulatory go ahead is the only reason that XRP was displaced. The CEO said:
Within the last few years, XRP was the second most valuable digital asset. As it became clear the SEC had given a hall pass to ETH, ETH obviously has kind of exploded and that clarity has helped.
XRP has since slipped down to seventh place on the list.
The SEC scores againRipple gets some bad news in its ongoing battle against the SEC after Judge Sarah Netburn extends its expert discovery deadline.
The Ripple vs SEC drama seems to be never-ending, and Judge Sarah Netburn just extended things after granting the SEC’s request to extend its expert delivery deadline, saying:
The additional time sought by the SEC will not affect the schedule to resolve this case. Rather, the additional time will allow both sides to complete the outstanding fact discovery and properly prepare for expert depositions.
The deadline has been moved to January 14, so the war won’t be coming to an end any time soon. XRP lost over 5% on Thursday.
XRP is top dog in the U.K.Ripple’s XRP might be down 42% from its April peak, but the currency has still managed to become the preferred digital asset in the U.K.
Popular trading platform eToro has just released a report which shows that Ripple’s XRP, which is currently the 6th largest crypto by market cap, has seen an increase in retail and institutional adoption recently and was the most popular crypto among the retail investors of the U.K in the third quarter. The period has seen a 105% increase in ownership on a year-on-year basis. Simon Peters, Crypto Market Analyst at eToro, said:
Whilst bitcoin holdings ‘only’ increased 2%, its year on year increase is 325%, which is a demonstration of how crypto assets have captured retail investors’ imaginations over the past 12 months and showing how they’re a vital component of many portfolios. XRP is similar – its growth quarter on quarter is just 4% but a lot of our investors are holding it. Some bought it way back in 2017, others more recently. There is a strong community of XRP supporters who believe in its long-term potential.
The token ended Thursday down 1.53%.
Aleks Marinkovic / Unsplash
Ripple continues to plan for the future despite the SECIts war with the SEC has yet to come to an end, with each side taking their knocks, but Ripple still continues to build its business and has just announced two new ventures. The first is a partnership with Nelnet Renewable Energy for a joint venture that will fund solar energy projects across the country to support the move to clean energy, which is a hot topic in the crypto world at the moment. The crypto firm has also joined forces with Qatar National Bank to enhance global cross-border payments, starting with Turkey but ultimately scaling into other markets.
Ripple has been in court with the SEC since January, and has spent the last 10 months piling the regulator under paperwork and continuing on with business as usual. Ripple holders are feeling optimistic about the result. Despite that, Ripple is down over 4% for the week so far.
Ripple makes a splash with NFTsRipple Labs first dipped its toes into the world of NFTs back in July, joining in on a $13 million funding round for NFT marketplace Mintable. Now the company is taking things up a notch to match the massive growth in the non-fungible market.
Ripple has just launched a new $250 million Creator Fund, which will work with Mintable and other partners, aiming to support developers that want to craft premium tokenized projects on the XRP ledger. These could be anything from from tradition art and collectibles to other more adventurous projects like interactive experiences. Monica Long, general manager of RippleX at Ripple, said:
While NFTs have opened the door for a tokenized future, actually navigating these concepts is a different ballgame for many. By starting with marketplaces and creators, our fund seeks to take the guesswork out of NFT projects to unlock unexplored tokenization use cases on the XRP Ledger. NFTs have the potential to accelerate new revenue streams and business models, while deepening creators’ relationships with the communities, people, and things they care about. Through our creator fund, we want to help bring new, high-profile creators and brands into the NFT space.
In the first half of this year, NFT sales volumes passed $2.5 billion, and continue to gain popularity around the world as people splash out more and more on the new digital tokens.
XRP prices fell below the $1 mark on September 20 and haven't recovered yet, largely due to Ripple's ongoing legal battle with the SEC.
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Is XRP better than all the rest?As XRP moves to reclaim $1 after slipping below the mark last week, a Ripple board member throws shade at Bitcoin after the crypto market took a tumble on the back of speculation. Despite the company’s ongoing battle with the SEC regarding its digital currency, former U.S. Treasurer and XRP board member Rosie Rios still has faith that XRP can beat out Bitcoin.
XRP’s primary purpose is facilitating cross border payments while other #Cryptos find their value in speculation. China’s latest move brings this point home. I want to clarify, while Ripple is committed to the cross-border use case, developers globally everyday are pursuing other use cases, including store of value, medium of exchange, etc for multiple blockchains/cryptos.
People have since accused her of spreading biased information because of her affiliation to the coin, but only time will tell. Prices ended Tuesday down 3.16% amid a broader market sell-off.