While the cryptocurrency market is in the red, Ripple’s XRP almost shows a price increase of around 30%. What are the reasons for this singular increase?
The price of XRP sees a sharp rise
While all cryptocurrencies have been on a downward trend over the past week, in particular Ether (ETH) which lost 20% following the Merge, XRP rose by 27% over the same period.
XRP is Ripple’s cryptocurrency, which works for a decentralized international payment solution. If you want to know more, we have presented this project in detail on our dedicated sheet.
7-day price of XRP
The rise in the price of XRP can be explained by different factors. The main reason is most likely the recent rebound in the lawsuit between Ripple and the Securities and Exchange Commission (SEC) the United States.
Indeed, a legal battle was started in 2020 by the American financial policeman against Ripple and 2 of its leaders, accusing them of having sold XRP tokens, classified, according to the SEC, as unregistered securities.
This case goes far beyond the Ripple case alone, since if the judge in charge of the final decision rules in favor of the SEC, the latter could then initiate legal proceedings. against cryptocurrencies closely or remotely resembling XRP.
But recently, both parties filed a motion for summary judgment, a legal process used so that the competent court can make a decision based on established facts without waiting for the end of a trial.
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Bullet of optimism for Ripple and XRP
It would appear that the SEC is having difficulty proving that XRP can be classified as a financial security, according to some Ripple representatives.
As such, Stuart Alderotya general counsel member of Ripple, tweeted to express what could amount to an admission of failure by the SEC.
My hot take – after two years of litigation, the SEC is unable to identify any contract for investment (that’s what the statute requires); and cannot satisfy a single prong of the Supreme Court’s Howey test. Everything else is just noise.
— Stuart Alderoty (@s_alderoty) September 17, 2022
“My perspective – after two years of litigation, the SEC is unable to identify any investment contract (that’s what the law requires); and cannot meet a single criterion of the Supreme Court’s Howey Test. Everything else is just noise. »
Same story for Brad Garlinghousethe CEO of Ripple, who also spoke on Twitter:
“Documents filed today clearly show that the SEC is not interested in enforcement. It wants to redo everything in an impermissible effort to extend its jurisdiction far beyond the authority granted to it by Congress. »
In addition, Ripple also defended itself by stating that XRP cannot be considered as financial securities. insofar as they are not linked to any investment contract. Therefore, investors would not enjoy any special rights with respect to the acquired XRP.
It therefore remains to remain attentive to the evolution of the trial, which in one case as in the other, may not leave the market indifferent.
👉 In The News – For the SEC, transactions on Ethereum (ETH) “take place in the United States”
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Source: Trading View
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