Brad Garlinghouse says that the U.S. Securities and Exchange Commission (SEC) has failed on everything that matters after a judge issued a groundbreaking ruling in favor of Ripple. In a new thread, the CEO responds to Fox Business reporter Charles Gasparino, saying that the regulatory agency has no grounds to claim that Judge Analisa Torres’ […]
The post Ripple CEO Brad Garlinghouse Says SEC Lost on Everything That Matters Following Groundbreaking XRP Ruling appeared first on The Daily Hodl.
Bitcoin bulls have failed to step in, increasing the chance for a retest of the $29,500 support.
Bitcoin remains stuck inside a narrow range, making it difficult to predict the direction of the next possible breakout. The U.S. Dollar Index (DXY), which generally moves in inverse correlation to Bitcoin (BTC), dropped below 100, but that has failed to propel Bitcoin higher. This suggests that Bitcoin is charting its own course in the near term.
Therefore, the earnings season from big companies this week may sway equities markets in the United States but may not have the same effect on Bitcoin. It is becoming increasingly difficult to pinpoint the event or the news flow that will cause Bitcoin’s price to escape the range.
The uncertainty about Bitcoin’s next directional move has not deterred the whales. CryptoQuant’s contributing analyst SignalQuant highlighted that one on-chain indicator, the unspent transaction outputs, has been rising in 2023, similar to the increase seen in 2019. If the indicator continues to rise, it will suggest that Bitcoin has room to run and the low made in late 2022 was a long-term bottom.
Could the DXY stage a recovery? Will that limit the upside in Bitcoin and the major altcoins? Let’s analyze the charts to find out.
The S&P 500 Index (SPX) is in a strong uptrend. The price has reached resistance at 4,513, which may act as a minor hurdle. But if bulls do not give up much ground from the current levels, it will suggest that traders expect the rally to continue.
The developing negative divergence on the relative strength index (RSI) has been negated, indicating that the bulls remain in command. If buyers thrust and sustain the price above 4,513, the index could resume its uptrend and reach 4,650. This level may again act as a strong barrier.
On the way down, the 20-day exponential moving average (EMA) of 4,420 is the important support level to watch out for. If this support gives way, it will signal that the bulls may be booking profits. That may sink the price to the 50-day simple moving average (SMA) of 4,293.
The U.S. Dollar Index broke below the moving averages on July 7 and continued its downward spiral. The bears yanked the price below the vital support at 100.82 on July 12, completing a bearish descending triangle pattern.
The sharp fall of the past few days has sent the RSI into the oversold territory, indicating that a minor recovery is possible. If the price turns up from the current level, the index could retest the breakdown level of 100.82.
This remains the key level to watch for. If the price turns down from this level, it will suggest that the bears have flipped the previous support into resistance. That could start a downtrend, which could reach 97 and then collapse toward the pattern target of 93.64.
If bulls want to prevent the decline, they will have to quickly push and maintain the price above 100.82.
Bitcoin bulls have defended the 20-day EMA ($30,173) for the past three days, but a negative sign is that they have failed to start a strong bounce off it. This suggests a lack of aggressive demand at current levels.
The 20-day EMA has started to flatten out and the RSI is just above the midpoint, indicating a balance between supply and demand. That could keep the pair inside the tight range of $29,500 and $31,500 for a while longer.
Buyers will have to shove the price above $32,400 to signal the start of the next leg of the uptrend. The BTC/USDT pair could then surge toward $40,000. Instead, if the price tumbles below $29,500, the pair may skid to the 50-day SMA ($28,671).
Ether (ETH) is trying to maintain above the 20-day EMA ($1,897), suggesting that the lower levels are attracting buyers.
The bulls will try to push the price to the psychological resistance of $2,000. This remains the key level to keep an eye on because a break and close above it will clear the path for a possible rally to the $2,141 to $2,200 zone.
The crucial support to watch on the downside is the 50-day SMA ($1,853). If this level cracks, it will suggest that the ETH/USDT pair may remain inside the large range between $1,626 and $2,000 for some more time.
XRP (XRP) is finding support in the zone between the 50% Fibonacci retracement level of $0.69 and the 61.8% retracement level of $0.64.
The bulls will try to resume the up move, but they may face formidable resistance at $0.83 and again at $0.93. If the price turns down from this zone, the XRP/USDT pair may remain stuck inside a range for a few days.
Another possibility is that the price turns down from the current level and breaks below $0.64. If that happens, it will signal an urgency among the bulls to exit their positions. That could sink the pair to the 20-day EMA ($0.58).
BNB (BNB) turned down from the 50-day SMA ($253) and reentered the symmetrical triangle pattern on July 14. This shows that the bears are fiercely defending the overhead resistance at $265.
The 20-day EMA ($244) has flattened out and the RSI is just below the midpoint, indicating a balance between supply and demand. The BNB/USDT pair could oscillate inside the triangle for a few more days.
Buyers will have to propel and maintain the price above the triangle to gain the upper hand. The momentum could pick up after the bulls kick the price above the overhead resistance at $265. Alternatively, a break below the triangle will signal that the bears are back in the driver’s seat. The pair could resume its downtrend below $220.
Solana (SOL) formed an inside-day candlestick pattern on July 15 and 16, which suggests short-term uncertainty about the next directional move.
Generally, the tightening of the range is followed by a sharp breakout. If buyers thrust the price above $29.12, the SOL/USDT pair could jump to $32.13. A rally above this level could open the doors for a further rise to $38.
Contrarily, if the price turns down and plunges below $26, it will suggest that the advantage has tilted in favor of the bears. The pair could first slide to $24 and thereafter to the 20-day EMA ($22.53).
Related: Bitcoin 'full breakout' not here yet as BTC price spends month at $30K
Cardano’s (ADA) pullback has reached near the breakout level of $0.30. Usually, such a deep correction delays the start of the next leg of the up move.
However, the moving averages are about to complete a bullish crossover and the RSI is in the positive territory, indicating that bulls have a slight edge. If the price turns up from the current level, buyers will again try to drive the ADA/USDT pair to the overhead resistance at $0.38.
It is unlikely to be an easy path higher for the bulls. The bears will try to stall the recovery at $0.34 and again at $0.36. On the downside, a break and close below $0.30 could tilt the advantage in favor of the bears.
Dogecoin (DOGE) is witnessing a tough battle between the bulls and the bears near the overhead resistance at $0.07.
The 20-day EMA ($0.07) has started to turn up and the RSI is in the positive territory. This suggests that the bulls have a slight edge. The bulls will try to propel the price to $0.08, where the bears may again mount a strong defense.
Contrary to this assumption, if the price turns down and breaks below the moving averages, it will suggest that bears continue to sell on rallies. That could keep the DOGE/USDT pair stuck inside the $0.06 to $0.07 range for some more time.
Usually, the price turns down and retests the breakout from a pattern, and Polygon (MATIC) is doing just that. The price could drop to $0.72.
If the price rebounds off $0.72 with strength, it will suggest buying at lower levels. The bulls will then try to push the price above the overhead resistance of $0.90. If they do that, the MATIC/USDT pair could start the next leg of the up move. The first stop could be the psychological resistance of $1 and subsequently $1.20.
This positive view will be invalidated if the price continues lower and plummets below the uptrend line. The pair could then slump to $0.60.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
A July 13 court ruling in Ripple’s legal battle with the SEC suggested XRP may not necessarily be a security, a decision which has already made significant waves in the space.
Stu Alderoty, the chief legal officer for Ripple Labs, has reportedly said United States-based banks may turn to XRP for cross-border transactions following a recent court ruling.
According to a July 17 CNBC report, Alderoty expressed confidence that U.S. banks and financial institutions could begin exploring XRP for use in cross-border payments. The Ripple CLO reportedly made the statement less than 24 hours after a federal judge in the firm’s case against the U.S. Securities and Exchange Commission (SEC) ruled the XRP token was not necessarily a security.
“I think we’re hopeful that this decision would give financial institution customers or potential customers comfort to at least come in and start having the conversation about what problems they are experiencing in their business, real-world problems in terms of moving value across borders without incurring obscene fees,” said Alderoty on July 14. “Hopefully this quarter will generate a lot of conversations in the United States with customers, and hopefully some of those conversations will actually turn into real business.”
Though Ripple’s legal battle with the SEC first brought in December 2020 is not yet over, the ruling on XRP has already made significant waves in the crypto space. Many U.S. exchanges have announced they re-enabled trading for the token or would explore doing so for the first time in more than two years, and some lawmakers have reiterated calls for regulatory clarity.
#NEW: Chairmen @PatrickMcHenry and @CongressmanGT issue a statement regarding the court ruling in SEC v. Ripple and the need for legislative clarity in the digital asset ecosystem to prevent further uncertainty in our financial markets.
— Financial Services GOP (@FinancialCmte) July 14, 2023
Read more https://t.co/y1nITVmHvh pic.twitter.com/tn0dn0BDHd
Related: Ripple decision is ‘troublesome on multiple fronts,’ says former SEC official
With the label of ‘security’ seemingly no longer hanging over XRP, partnerships between Ripple and banks dampened by the SEC lawsuit could find new life. Bank of America had been eyeing the blockchain firm in 2019, and American Express first partnered with Ripple starting in 2017.
At the time of publication, the price of XRP was roughly $0.74, having increased by more than 50% since the court ruling. The token became the fourth largest cryptocurrency by market capitalization following the price surge.
An immediate appeal could potentially jeopardize the SEC’s “entire enforcement agenda” if it ends up losing, said Katie Haun of Haun Ventures.
A former federal prosecutor turned chief executive of a crypto-focused venture capital fund says she would be “surprised” if the United States securities regulator lodges an immediate appeal against the Ripple case ruling, as it currently benefits from lack of “legal clarity.”
On July 13, Judge Torres granted a partial summary judgment in favor of Ripple Labs regarding XRP’s status as a security. At the time, a few commentators warned that an appeal from the SEC would be a possibility.
However, in a July 15 Twitter thread, Haun Ventures CEO Katie Haun explained that the securities regulator will likely stay quiet as it benefits from the “current confusion” and that losing an appeal could jeopardize its future enforcement actions.
Some non-legal advice musings on the Ripple decision, including two main takeaways:
— Kathryn Haun (@katie_haun) July 15, 2023
1/ The Court drew a reasonable line and overall it's a good outcome for the industry. For other suits w/ the SEC, we believe the Supreme Court’s “major questions doctrine” will play a larger…
“Anything is possible, but an immediate appeal seems unlikely both because the agency would have to ask the court to split this decision from the portion going to trial and because I’m skeptical the SEC actually wants legal clarity,” said Haun.
“The Commission benefits from the current confusion and losing these issues on appeal would jeopardize its entire enforcement agenda. So I’d be surprised if the SEC tried to appeal now.”
Haun is but the latest commentator to share the view.
On July 15, Ripple Labs CEO Brad Garlinghouse also believes it may “take years” before the SEC lodges an appeal. He added that an appeal by the SEC would only reinforce Judge Torres’ decision that XRP is not a security.
In a video posted on YouTube on the same day, U.S. lawyer and Ripple commentator Jeremy Hogan said he believes the SEC will launch an appeal after the trial between SEC and Ripple ends, which is scheduled for early 2024.
The SEC is currently suing crypto exchanges Binance and Coinbase over alleged violations of securities laws. Some believe the recent Ripple case ruling, while not a binding precedent, could have an impact on the outcome of the cases.
Related: Ripple decision is 'troublesome on multiple fronts', says former SEC official
Meanwhile, many crypto commentators and lawmakers have called for Congress to take action and give legal clarity to crypto in light of the recent ruling.
Brian Quintenz, former commissioner of the Commodity Futures Trading Commission — now head of policy for venture capital fund a16z crypto — stated that the recent Ripple court ruling “only results in more uncertainty for entrepreneurs and builders.”
U.S. Senator Cynthia Lummis said the ruling underscores the urgent need for Congress to establish a clear and comprehensive regulatory framework for the cryptocurrency industry.
Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?
According to John Reed Stark, former attorney in the SEC's Enforcement Division, the ruling in favor of Ripple Labs "resides on shaky ground".
Former Securities and Exchange Commission official John Reed Stark spoke out against the recent ruling on Ripple Lab's case, calling the decision "troublesome on multiple fronts" in a LinkedIn analysis.
Stark broke down Judge Analisa Torres' decision from July 13 by examining the grounds upon which she ruled in favor of Ripple in a lawsuit brought by the SEC back in 2020, alleging that the company's XRP (XRP) token was a security.
Some thoughts on the SEC/Ripple decision. https://t.co/A94kHlGI9N pic.twitter.com/lcwWML49kO
— John Reed Stark (@JohnReedStark) July 14, 2023
Judge Torres' verdict states that XRP token was a security when sold to institutional investors, but that it wasn't a security in 'programmatic sales' [public sales] and 'other types of sales', such as token distribution to employees. Ripple also faces a penalty for the alleged violation, as well as a rescission for institutional investors — whose sales reportedly involved $720 million.
In the decision, Judge Torres argues that institutional investors “reasonably expected that Ripple would use the capital it received from its sales to improve the XRP ecosystem and thereby increase the price of XRP,” while the investors who used exchanges to buy XRP tokens “could not reasonably expect the same.”
For Stark, the decision establishes a "class of quasi-securities that discriminates" based on the sophistication of the investor buying the token.
"The Ripple Decision holds that the same exact token can be a security sometimes but not a security other times. And the more ignorance and willful blindness by retail investors, than the less protection the retail investors will receive. And the less disclosure about the token, then the less liability for the token issuer. That just can’t be right."
Stark also notes that this argument seems contrary to investors protection principles, which state that an investor's level of protection should not be affected by whether they read materials related to the purchase of an asset. "Securities laws were specifically designed to protect individual investors, based on the idea that they can’t fend for themselves [...]. The Ripple decision turns this notion on its head," Stark noted.
In Stark's view, who served as an attorney for over 18 years in the SEC's Enforcement Division, the "decision resides on shaky ground, is likely (and ripe) for appeal, will likely result in reversal."
"The bottom line: Stock is always stock – it can’t transmogrify into 'not stock.' So my take is that the SEC will appeal the Ripple decision to the 2nd Circuit and the 2nd Circuit will overturn the District Court’s rulings related to 'programmatic' and 'other sales'," he noted.
Judge Torres' ruling was received as a victory by the crypto community and Ripple. The company's CEO Brad Garlinghouse said during a recent interview that the SEC might face a prolonged process before having the chance to appeal the decision. In addition, Garlinghouse called the institutional sale decision "the smallest piece" of the lawsuit, and said that an appeal by the SEC against the retail sale ruling would only bolster Torres' ruling.
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?
Ripple Labs CEO Brad Garlinghouse says that the most recent landmark ruling against the U.S. Securities and Exchange Commission (SEC) has put the regulatory agency in check. In a new interview with CNBC, Garlinghouse says Judge Analisa Torres’ ruling that Ripple’s automated, open-market sales of XRP don’t count as securities is a huge win for […]
The post Ripple’s Brad Garlinghouse Says Landmark Ruling Puts SEC in Check, Calls for Clear Rules of the Road for Crypto appeared first on The Daily Hodl.
The Securities and Exchange Commission should recognize it’s time to settle its cases against Coinbase and Ripple Labs.
In every major litigation, there comes a moment when you realize it’s time to settle. A ruling doesn’t go your way, a juror gives your legal team the side eye, the judge makes it clear it’s time for a settlement conference. After Judge Analisa Torres’ decision in SEC v. Ripple, the time has come for the United States Securities and Exchange Commission to settle the remainder of its case against Ripple Labs — as well as its case against Coinbase.
The SEC’s attack on crypto has used a flexible legal definition of what constitutes a security that must register with the SEC under a legal test established by the Supreme Court in the 1946 case SEC v. Howey. Through most of its history, the SEC used this tool to go after outright frauds and scams with little economic reality behind them. You can understand why judges tended to give the SEC the benefit of the doubt and made the test increasingly flexible over a series of historical scam cases. Using this flexible test to attach legitimate crypto projects is different and, ultimately, leaves crypto projects with no way to register.
Torres ruled that sales to retail investors of the XRP (XRP) token were not necessarily linked to the entrepreneurial efforts of Ripple as a firm and, thus, failed one element of the Howey test. This is a unique crypto twist on the Howey test. Linking the investment to the entrepreneurial efforts of whoever is selling the interest is going to be harder in crypto because tokens don’t represent an equity interest in the issuer. Thus, the purchaser of a crypto token is not as closely linked to the efforts of the founder of a new blockchain as equity investors in traditional firms.
Related: The Supreme Court could stop the SEC’s war on crypto
This turns the SEC’s case against Coinbase on its head — and Coinbase knows it. It sent a strong message to the SEC when Coinbase relisted the XRP token within hours of Torres’ decision. This victory was only a partial victory, but it makes it very difficult for the SEC to target secondary markets in crypto securities like secondary trading on Coinbase’s platform.
All of this analysis doesn’t even begin to explore the challenges the SEC will face with the Supreme Court eager to reign in administrative agencies with the evolving major questions doctrine that could dramatically curtail the SEC’s war on crypto.
People are speculating what will happen if SEC appeals Ripple case to 2nd Circuit. Ya’ll don’t forget Ripple might still win the whole thing at SCOTUS. https://t.co/MaWU940Ms1
— BlockProf (@JWVerret) July 14, 2023
The SEC’s best move now is to settle and make a deal with Coinbase. Coinbase already extended the olive branch to the SEC a year ago by filing a request for rulemaking to create an adapted listing process for crypto assets. I suggested the same about six months earlier after a hearing of the SEC’s investor advisory committee — which I led. The committee found that crypto tokens could not feasibly register with the SEC without adaptation of the listing process.
There is no shortage of crypto lawyers ready to work with the SEC to figure out an adaptive regulatory regime for crypto tokens. There are hundreds of securities lawyers who are SEC alumni or big law alumni working in crypto right now who could help the SEC adapt their rules in the same way the SEC has adapted its rules in the past for asset-backed securities, master limited partnership, real estate investment trusts and dozens of other hybrid assets and asset vehicles.
Related: Demand is driving the price of Bitcoin to $130K
Many of the disclosure requirements in the SEC’s disclosure rules about boards of directors, executive compensation, shareholder proposals and financial statements simply don’t fit crypto projects. Who would “register” Ethereum today? It has no board and no CEO.
What assets and liabilities would be on the balance sheet of an entity filing documents about Ethereum, given that no entity actually controls the well-decentralized Ethereum blockchain? None of that is clear.
And things crypto asset buyers want to know, such as tokenomics or audits of blockchain security or the smart contracts underlying decentralized finance (DeFi) exchanges, aren’t mentioned in SEC disclosure rules.
The game of chicken that the SEC has been playing with Coinbase and Ripple needs to end because the SEC is about to get run off the road. There is a better path consistent with the rule of law. It’s time for the SEC to work with crypto lawyers to develop a workable crypto asset listing and disclosure regime and quit the blithe “just come in and register” talking points. This alternative approach will better protect crypto asset buyers.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
XRP isn’t the only crypto asset that’s soaring after a groundbreaking ruling was issued Thursday in the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple. XRP challenger and payments blockchain Stellar (XLM) pumped by more than 57% on Thursday, going from trading around $0.095 at the beginning of the day to $0.144 at time […]
The post Not Just XRP: Stellar (XLM) Rips by More Than 57% in One Day After Judge Issues Ruling in SEC’s Ripple Lawsuit appeared first on The Daily Hodl.
The top 100 DeFi tokens had a mixed week, with most of the tokens trading in a narrow range before surging on July 13 courtesy of Ripple’s partial win in its court battle with the SEC.
Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.
This week, Finance Redefined looks at the growing popularity of zero-knowledge proof-based scalable solutions. Zero-knowledge rollups (ZK-rollups) technology has gained a lot of traction over the past year thanks to its increased use in the Ethereum ecosystem.
Bug bounties are seen as a great reward system for white hat hackers to weed out bugs in the DeFi ecosystem, which often fall prey to exploits. However, recent analysis suggests these programs have mixed results.
After a series of exploits on the Multichain protocol over the past couple of weeks, the founder of Connext proposed a “Sovereign Bridged Token” standard to prevent future issues and exploits.
Algorand’s decentralized lending protocol is set to wind down by year-end as developers claimed building a borrowing and lending protocol is “no longer a viable path” for the protocol.
The top 100 DeFi tokens had another mixed week in terms of price action, followed by a late surge on July 13, aided by the partial verdict for Ripple in its fight against the United States Securities and Exchange Commission (SEC), leading to an 84% surge in the XRP (XRP) price.
Ethereum scaling protocols dominate the use of ZK-rollups, with major launches, new research and healthy competition among the key highlights in a sector report published by ZKValidator.
The node infrastructure operator’s “State of ZK Q2” report reflects on significant events across the ZK ecosystem, with notable launches of ZK-powered layer 2’s highlighting the use of the technology for scaling in comparison with other market segments.
Algofi, the borrowing and lending protocol built on the decentralized finance blockchain Algorand, will soon shut down.
According to a July 11 announcement, developers’ “belief in the strength of Algorand’s technology and novel consensus algorithm has not wavered,” however, the Algofi platform will wind down soon.
Bug bounties are programs organizations offer to incentivize security researchers or ethical or white hat hackers to find and report vulnerabilities in their software, websites or systems. Bug bounties aim to improve overall security by identifying and fixing potential weaknesses before malicious actors can exploit them.
Organizations that implement bug bounty programs typically establish guidelines and rules outlining the scope of the program, eligible targets and the types of vulnerabilities they are interested in. Depending on the severity and impact of the discovered vulnerability, they may also define the rewards offered for valid bug submissions, ranging from small amounts of money to significant cash prizes.
Arbitrum-based decentralized finance (DeFi) protocol Rodeo Finance was exploited for $1.53 million on July 11. The DeFi protocol was exploited using a code vulnerability in its Oracle, leading to a loss of over 810 Ether (ETH). Rodeo Finance was earlier exploited on July 5 for around $89,000 due to a vulnerability in its mintProtocolReserves function.
According to data shared by blockchain analytic firm PeckShield, the exploiter later bridged the stolen funds from Arbitrum to Ethereum and swapped 285 ETH for unshETH. The exploiter then deposited the ETH on Eth2 staking. Finally, the exploiter routed the stolen ETH using the popular mixer service Tornado Cash, which exploiters often use as an exit route to obscure the transaction’s footprint.
A July 7 Ethereum improvement proposal (EIP) seeks to standardize how tokens are bridged between networks. The “Sovereign Bridged Token” standard, or EIP-7281, allows token issuers to create canonical bridges across multiple networks.
The proposal was co-authored by Arjun Bhuptani, founder of the Connext bridging protocol. In a July 7 social media post, Bhuptani claimed the protocol would help prevent issues like the July 6 Multichain incident, which some experts have described as a hack.
DeFi’s total market value saw a bullish surge after three bearish weeks. Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top 100 tokens by market capitalization had a bullish week, with most tokens trading in the green. The total value locked in DeFi protocols remained below $50 billion.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
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Short sellers are getting slammed by hundreds of millions of dollars worth of liquidations as the crypto markets rally due to XRP receiving a favorable ruling for crypto traders. New data from market intelligence firm Coinglass reveals that during the last 24 hours, $218 million worth of digital assets were liquidated from prominent crypto exchange […]
The post $218,000,000 in Liquidations Hits Short Sellers in 24 Hours As Crypto Market Rallies After Favorable XRP Ruling appeared first on The Daily Hodl.
