- In the SEC v. Ripple case, both sides have agreed to finalize the information before Christmas, postponing the completion of the trial to 2023.
- The US regulator applied for an extension, thus opening the door to a deal.
- Analysts have noted that technical indicators are turning negative for the XRP price after falling below $ 0.65.
The SEC trial against Ripple has been postponed until 2023. After some major developments in the lawsuit, supporters believe the cross-border payment giant can reach a settlement.
The price of XRP flows as the SEC case against Ripple drags on
The XRP award has received a massive blow from the Ripple lawsuit. Altcoin continued its downward trend, recording a loss of 6% overnight.
The case filed by the Securities and Exchange Commission (SEC) argues that XRP is indeed a security and should be registered as such, which Ripple has not done since 2013. The SEC has used “regulation by implementation “to regulate cryptocurrency projects such as Ripple, Kik Interactive and Telegram in the past. But the financial regulator has taken this approach a step further with Ripple.
SEC indictment against Ripple and two executives.
The removal of $ XRP from the list of exchanges following the SEC lawsuit is troubling for many other arguments. The key questions now are “who else is it?” and “how soon will the SEC act?”.
– Alex Krüger (@krugermacro) December 29, 2020
The SEC lawsuit resulted in the removal of XRP from the industry’s list of major cryptocurrency exchanges and a pending group lawsuit, in which 63,000 XRP holders have gathered against the SEC and agreed to make statements that not only support SEC claims against Ripple, but also directly. refutes claims against Ripple.
More than 63,000 #XRPHolders have joined the fight against the SEC and are ready to make statements that directly contradict not only the SEC’s claims against Ripple, but also the claims against Ripple in the lawsuit pending collective action.
– John E Deaton (@ JohnEDeaton1) January 3, 2022
Experts from the crypto community say the SEC has approached projects like Ripple and Telegram to reach quick fixes and avoid lengthy litigation.
The SEC has claimed that Ripple failed to register transactions involving XRP as “investment contracts” as required by Section 5 of the Securities Act. Ripple’s legal team argued that it was not clear enough whether the term “investment contract” applied to XRP transactions, citing fair notice protection.
The protection of “Fair Notice” should provide clarity in the form of a written law, indicating what is and what is not prohibited. With the presiding judge denying the SEC’s request to remove Ripple’s fair defense, this marked the first major victory for the payment giant.
This milestone allowed Ripple to provide the SEC with important insights into how XRP and digital assets should be classified. However, it remains to be seen whether the court will allow Ripple to file a strong extension of fair notice protection.
Previous securities closure lawsuits that have cited a similar defense are critical to the outcome of the Ripple case. For example, in the SEC lawsuit against Kik Interactive, the presiding judge ruled that the term “investment contract” is quite clear and not vague when applied to digital asset transactions. Therefore, Ripple’s fair defense could have a similar fate if it does not survive the summary judgment in the Kik case.
Ripple claims that the SEC has subtle reasoning and created regulatory confusion based on the speech of the then SEC Director of Corporate Finance, William Hinman. Hinman explained that Ether (Ethereum network’s native currency) is no longer a security as it has become decentralized over time.
The speech was initially interpreted as regulatory guidance. However, the SEC insists it was a personal opinion and “not necessarily” of the regulator.
Hinman is quoted as saying:
… Aside from the fundraising that came with the creation of Ether, based on my understanding of the current state of Ether, the Ethereum network and its decentralized structure, Ether’s current offerings and sales are not securities transactions. .… Over time, there may be highly decentralized networks and systems that do not require adjustment of tokens or currencies that operate on them as securities.
Ripple’s legal team has asked the SEC to disclose a transcript of the 70 emails circulating within the agency regarding Hinman’s speech. However, the Financial Regulator has continued to challenge the confidentiality of emails, publishing an expert report on the last day of disclosure.
The court condemned the actions of the regulator and ordered them to pay the costs of the defendants in filing their request for removal from the list.
The last update in this case is a letter from the two parties involved agreeing on new dates. According to James K. Filan, a lawyer and Ripple lawyer, Ripple and the SEC have agreed on an extension, stating in a letter to Presiding Judge Sarah Netburn that:
Requests for summary judgment under Rule 56.1 and requests for exclusion of expert testimony must be filed by August 2, 2022. Objections to requests for summary judgment, responses to Rule 56.1 statements, and responses to motions for exclusion of witnesses must be submitted. by November 2, 2022. Responses to complaints must be submitted by December 20, 2022.
#XRPCommunity #SECGov v. The #Ripple #XRP parties submit a joint planning letter proposing the opening of summary judgment documents and expert complaints in August and the closing of reports a few days before Christmas. pic.twitter.com/DBVkl3LQXU
– James K. Filan 90k + (watch out for fraudsters) (@FilanLaw) 22 April 2022
With the agreement reached by both parties, Ripple defender Stuart Alderoty told his 69,800 followers on Twitter that he expects a solution in 2023. Meanwhile, Ripple CEO Brad Garlinghouse told Bloomberg that the SEC stance is hurting the industry of blockchain in the US as entrepreneurs and developers flee to other countries where regulation is clear.
Garlinghouse stated that if Ripple loses the lawsuit filed by the SEC, the payment giant will smoothly continue its operations outside the US, where it serves a larger customer base. He reminded viewers that XRP took a hit from the SEC legal battle against the payment company and the removal of lists and the ensuing bloodshed. However, altcoin has survived the aftermath of the legal battle against its largest public holder.
Analysts at FXStreet think the recent XRP price drop offers investors an opportunity to accumulate altcoin before hitting the $ 1 level. They believe the recent drop in the price of XRP has helped altcoin accumulate liquidity as it bonds with Bitcoin.