SEC’s Authority Over XRP Futures Challenged in Bitnomial Lawsuit

October 12, 2024 Bitcoin.com

SEC hints at potential appeal to XRP ruling from Ripple Labs lawsuit

July 22, 2023 Coin Telegraph

According to court documents, the SEC stated that it is now “considering the various available avenues for further review” on the ruling which found XRP to not be a security.

The U.S. Securities and Exchange Commission has suggested that it may appeal a recent ruling on the Ripple Labs lawsuit, which deemed XRP to not be a security when sold to retail investors.

The SEC argues that the ruling goes against “fundamental securities laws principles” such as the Howey Test, which determines what falls under the category of an investment contract or not.

Do we really want a judge to ask herself: Does my strict application of the Howey test in this case result in an outcome in 2023 that comports with the policy implications behind a 1934 statute? https://t.co/acMNRc00B6
— John E Deaton (@JohnEDeaton1) July 22, 2023

The SEC’s latest comments on the Ripple Labs lawsuit were made in a separate lawsuit against Terraform Labs and its founder Do Kwon, over allegedly “orchestrating a multi-billion dollar crypto asset securities fraud.”

As per the SEC’s July 21 response to a motion to dismiss from Terraform Labs — in which the potentially precedent-setting Ripple Labs ruling was referenced by the defendants — the SEC highlighted a host of issues it holds against the court’s recent decision on XRP.

“Contrary to Defendants’ assertions, much of the Ripple ruling supports the SEC’s claims in this case and rejects arguments Defendants have raised here. However, with respect to the Programmatic and other sales, the SEC respectfully avers that Ripple conflicts with and adds baseless requirements to Howey and its progeny,” the SEC stated, adding that:

“Respectfully, those portions of Ripple were wrongly decided, and this Court should not follow them. SEC staff is considering the various available avenues for further review and intends to recommend that the SEC seek such review.”

The SEC’s statements come just a few days after SEC Chair Gary Gensler expressed his disappointment over the court deeming XRP to not be a security when sold to retail investors.

“We are pleased that the court addressed […] that a token for institutional investors is a security […] disappointed in the other aspect about retail investors. We are still taking a look at that and considering it,” Gensler stated in a July 17 interview with Yahoo Finance.

On the same day, Gensler also appeared at the National Press Club to give a talk on artificial intelligence, and was questioned if the court rulings represented an urgent need to establish clear regulation for the industry.

Gensler however, failed to provide a specific answer to such.

The SEC arguing that a court didn’t follow Howey is rich… On its own website, the SEC has acknowledged that Fed courts require commonality & then it goes on to say that it doesn’t require commonality in its analysis or view commonality as a distinct part of Howey. If the SEC’s… https://t.co/CX6Kwfh3cJ
— exlawyer.eth/tez (@exlawyernft) July 22, 2023

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?

Support for Ripple Grows in SEC Lawsuit Over XRP — CEO Says ‘It’s Unprecedented’

November 6, 2022 Bitcoin.com

Ripple CEO: SEC Lawsuit Over XRP ‘Has Gone Exceedingly Well’

April 17, 2022 Bitcoin.com

XRP gains 30% after Ripple gets permission to explain ‘fair notice defense’ vs. SEC

February 7, 2022 Coin Telegraph

Altcoin

The long-timeframe chart is painting a death cross pattern, however, suggesting a selloff ahead.

XRP price rose by nearly 30% in less than a week amid positive sentiment around the court case, in which the U.S. Securities and Exchange Commission (SEC) claims that Ripple sold XRP as illegal securities.

SEC vs. Ripple

Judge Analisa Torres has granted Ripple permission to respond to the SEC's Memorandum of Law in support of Motion to Strike fair notice defense, according to court documents.

Additionally, Judge Torres also ordered to unseal three documents concerning the SEC vs. Ripple case, including Ripple's CEO Brad Garlinghouse's email thread and deposition notice and founder Chris Larsen's email string.

Markets received Judge Torres's orders positively. Soon after they made it to the wire, XRP's price rallied by almost 30%, rising from its Feb. 3's lowest level of $0.058 to as high as $0.782 on Feb. 7.

JUST ADDED to our Documents Library:
✅Order by Judge Torres Granting in Part, and Denying in Part, Motions by Defendants @Ripple @bgarlinghouse @chrislarsensf to seal some exhibits to previous motions, and more (1/3) https://t.co/zubKVutRzE
— CryptoLaw (@CryptoLawUS) February 3, 2022

The upside move picked momentum also as Jeremy Hogan, partner at law firm Hogan & Hogan, noted that the SEC vs. Ripple might be heading toward a verdict.

It's good because we are moving into the second phase of the case where "things" are going to happen.
— Jeremy Hogan (@attorneyjeremy1) February 3, 2022

XRP "death cross" ahead?

The latest bout of buying in the XRP market also appeared as the token retested its multi-month support trendline, as shown in the chart below.

*XRP/USD weekly price chart. Source: TradingView*

XRP now faces a resistance confluence ahead in the form of its 20-week (green) and 50-week (red) exponential moving averages (EMAs). Meanwhile, the two moving averages look poised to form a "death cross" should the 20-week EMA cross below the 50-week EMA — a classic sell signal.

Nonetheless, a decisive, high-volumed close above the said EMAs may limit the selloff risks associated with the death cross. Moreover, an extended upside momentum may have XRP price retest its descending trendline resistance near $1.26, a 50% price increase from current levels.

Alexander Mamasidikov, the co-founder of crypto wallet service MinePlex, ignored the downside warnings, asserting that the end to a long-standing court battle between the SEC and Ripple would prove bullish for XRP.

"With the anticipation that the SEC-induced legal battle alleging the status of XRP as security will be settled this year, the current buy ups can be seen as an avenue to stack up at a discount for possible price surge in the longer term," he said, adding:

"Should the current trend be sustained, XRP’s community’s ambitious backing can help push the cryptocurrency to hit a new monthly high of $0.88 per coin."

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Ripple Scores $15 Billion Valuation — CEO Says Financial Position Is Strongest Ever Despite SEC Lawsuit Over XRP

January 27, 2022 Bitcoin.com

XRP price chart ‘double bottom’ puts next bullish target at $1

August 11, 2021 Coin Telegraph

<div>XRP price chart 'double bottom' puts next bullish target at </div>

Coin Telegraph

The classic "double bottom" pattern's success rate of hitting its profit target lies around 78.55%.

Ripple's XRP token could hit $1 in the coming sessions per a classic technical chart setup.

Dubbed as "double bottom," the trend reversal indicator appears after the price bottoms out at a level, rebounds toward a higher resistance level, and then pulls back to or near the first bottom level, only to rebound again to the previous resistance line (also called neckline).

Should the price close above the neckline, it anticipates an extended move upward, the length of which equals the total height between the neckline and the bottom level. So it appears, XRP is closer to executing the said pattern entirely, as shown in the chart below.

*XRP double bottom setup in play. Source: TradingView.com*

XRP/USD formed the first bottom at $0.65 on June 22 and rebounded towards its neckline resistance at $0.75. It fell again to log the second bottom level at $0.51, followed by another retracement toward the $0.75-resistance and a subsequent breakout.

In other words, XRP has a decent chance to test $1 as its double bottom pattern's profit target.

In fact, research conducted by Samurai Trading Academy shows that double bottoms have a 78.55% success rate.

On the flip side, XRP's daily relative strength indicator, or RSI, alerted about its interim excessive valuations. At 72.29, the RSI reading was two points into the overbought region, hinting at an imminent sell-off period in the sessions ahead.

Fundamentals

XRP price surged by 77.39% to $0.91 after bottoming out at $0.514 on July 20.

A majority of its gains came in the wake of a market-wide upside rally, led by the euphoria surrounding Ethereum's milestone software update.

The ETH/USD exchange rate surged 89.13% to $3,235 after bottoming out on the same date as XRP—on July 20—at $1,718.41. As a result, it appears XRP merely tailed the crypto market trend, thanks to its 0.69 positive correlation efficiency with Ether, as per the 30-day average data collected by CryptoWatch.

SEC vs. Ripple update

In the latest events, the U.S. Securities and Exchange Commission (SEC) failed to turn up the internal documents despite two orders from Judge Sarah Netburn on request from the defendant, Ripple Labs.

In detail, Ripple Labs had filed a motion in early June to compel the SEC to turn over its internal communications regarding XRP's rival cryptocurrencies, Bitcoin and Ether. Judge Netburn approved the motion, but SEC did not deliver even a single document.

Financial Feeds noted that Judge Netburn can order monetary sanctions against the SEC for not complying with a court order. More so, she can even dismiss the U.S. securities regulator's case against Ripple Labs should the former remain uncooperative.

Meanwhile, SEC chairman Gary Gensler asserted in his response to Senator Elizabeth Warren that their means to determine whether a crypto asset is a security or not is clear, adding that:

"The SEC has taken and will continue to take our authorities as far as they go [...] We haven’t yet lost a case."

I find it funny He pointed out they had never lost a case. That is because most don't have the capital or willing to risk everything to continue to fight a rigged fight. Unfortunately for @SECGov they have Met their match with @Ripple
— JIM MARSHALL XRP (@jimmars74259096) August 11, 2021

The SEC vs. Ripple lawsuit, which started in December 2020, damaged XRP's investment prospects. The Ripple token's value fell by almost 80% in a month (to $0.168). It also faced delisting across regulated exchanges, including Coinbase, Bitstamp, Crypto.com, OKCoin, Wirex, and others.

SEC Accuses Ripple of Harassment, Asks Judge to Block Access to Some Discovery Records

April 22, 2021 Bitcoin.com

xrp security