XRP, the sixth-largest cryptocurrency by market share, has sustained gains despite trading down on Monday, with the bullish outlook following the latest development in the Ripple Vs SEC case, which could have a significant impact on the future of cryptocurrency regulations.
XRP Ripple (XRP), the crypto token announced by the American blockchain tech startup building cross-border money transfer network and systems, Ripple is trading 1.1 percent down on Monday. Nonetheless, the sixth- largest cryptocurrency worth $24 Billion in market share has sustained profits of approximately 8.4 percent in the last 7 days.
Exchanging hands at $0.4616, $830 Million worth of XRP Ripple (XRP) crypto tokens has been traded over the previous 24 hours. As discussed past week, the positive tendency outlook in XRP Ripple (XRP) comes after the latest development in the Ripple Vs SEC case.
In December 2020, the United States Securities and Exchange Commission (SEC) filed a case against Ripple and its top executives, alleging that the company’s sale of XRP Ripple (XRP) constituted an unregistered securities offering.
Greater than two years thereafter, the case is still dragging on but the scales seem to be tipping in favor of Ripple, with the help of the Hinman documents, which the judge ruled that they remain open and not sealed as the SEC had requested.
Reports by Judge Torres, the documents regarding the speech which William Hinman, a previous SEC director gave in 2018 were relevant in the judicial process.
“Putting aside the fundraising that accompanied the creation of Ether, according to my understanding of the current state of Ether, the Ethereum (ETH) network and its decentralized structure, current offers and sales of Ether are not securities transactions,” Hinman stated.
The speech was whole lot of because it suggested that digital currencies could transition from securities to commodities. This could affect Ripple’s fair notice defense, and a summary judgment ruling may be announced soon. The outcome would have a whole lot of impact on future of the digital currency regulations.
XRP Ripple (XRP) Did Not Outrightly Meet the Definition of a Security – SEC’s Internal Emails Suggest
Reports by emails highlighted by John Deaton, a cryptocurrency lawyer known for demystifying the ongoing lawsuit and shared by BeIncrypto XRP Ripple (XRP) had not met the standard definition of safety, although the agency still went ahead with the lawsuit.
Deaton could not comprehend why Ripple’s legal representatives did not attract out the implication of the emails, or their relevance to the case from the beginning.
Reports by the emails referred to in exhibit 220, XRP Ripple (XRP) did not completely pass the Howey test to be considered a security.
There are “reasonable grounds to conclude that XRP Ripple (XRP) does not satisfy all elements of the Howey Analysis and is this is why not a ‘security’ for objectives of the federal securities laws,” the email reads in part.
An admission such as this from the SEC would dig a big hole in the lawsuit which seeks to classify many of the cryptocurrency crypto tokens as securities, as long as they pass the Howey test.
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