XRP Court SEC vs Ripple Case: News, Decision, What Will Happen to Cryptocurrency?

The crux of the dispute is whether XRP can be considered an “investment contract” and therefore a security under the Securities Act. Ripple’s protracted and agonizing lawsuit against the SEC has since begun. The judge has been very fair and has allowed both sides to present their arguments. The jury is still deliberating, but it seems like they are leaning towards finding Ripple guilty. On December 21, 2020, Ripple Labs and two of its executives were charged by the SEC with securities fraud.

The XRP court case

But even a positive development for Ripple and its management in this case may not bring an end to the problems with the XRP coin. At the time of the announcement, news of the lawsuit dealt a heavy blow to XRP’s price. The cryptocurrency practically halved in value and lost a significant portion of its market cap. Investors who were exposed to the assets did not have enough time to react and have most likely experienced severe losses. Sostack and his legal team maintain, however, that Ripple is nevertheless liable due to ongoing sales of the XRP coins.

Another motion was granted on 21 September 2022 that gave deadlines for motions to seal – requests that prevent evidence in a case being made public. There was some confusion on 14 November 2022 when Fox Business reported that Ripple had reached a settlement agreement with the SEC. One of its reporters later revealed that a Ripple spokesperson had denied these claims. Brad Garlinghouse, Ripple’s CEO, said that the case could last another three to four months and would end in the first half of 2023.

A move through the 100-day EMA to $0.41 would support a run at the 200-day EMA and $0.45. For XRP, a breakout may be unlikely ahead of any court ruling on the Hinman documents following the SEC-Ripple conference. Assuming there is no settlement, the summary judgments are all due by November, with the court decision likely in March. By press time, XRP was trading at $0.34, recording daily losses of https://newsblock.today/the-number-of-blockchain-cyberattacks-is-growing/ about 2.7%, with the asset having a total market worth of $17.1 billion. Reischer notes a favorable conclusion would be “beneficial to the entire crypto industry” because it is necessary to offer clarity and confidence for the entire industry. It is essential for the whole of the industry to have a thorough understanding of any duties, and regulatory expectations set out by the SEC, the U.S.

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  • The SEC is still under Gary Gensler’s leadership, and criticism is growing.
  • It is still possible for a settlement to be reached, as long as the SEC is concerned about Ripple’s findings.
  • At the end of September 2022, Judge Torres ordered the SEC to hand over the documents by William Hinman, a former corporation finance division director at the SEC.
  • This article discusses some of the news of the SEC case against Ripple in 2022 and what the future holds for the token in question.

The filing, dated May 5, 2020, said the plaintiff, Bradley Sostack, had filed a notice of voluntary dismissal. Overall, the case outcome will likely impact the value of XRP and the crypto market in general. For instance, a ruling in favor of Ripple might be bullish for XRP and vice versa. By press time, XRP was trading at $0.35 with daily gains of about 2.5%. Furthermore, with both parties making final submissions, the crypto community is speculating on the possible judgment date.

The Case Against the SEC: Revolving doors and “on the fly” legal tests at the SEC

However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again. By 13 December 2022, the cryptocurrency was trading at $0.391, up 3.84% in the previous 24 hours. From there it fell to a periodic low of $0.334 on 19 December 2022, before recovering slightly to a high of $0.372 on 27 December 2022.

Following the market crash in March 2020, cryptocurrencies have, along with stocks, flourished. Bitcoin, Ethereum, and almost the entire altcoin market have not only revisited old ATHs but created new ones as well. Named ‘The SEC’s Attack on Crypto in the United States,’ the first post argued that XRP is a currency and not an investment asset. Ripple’s post also mentions how the company worked with the SEC for many years in order to work on regulatory questions. I believe it is safe enough to initiate a small position in the digital coin.

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