In short: The legal battle between the United States Securities and Exchange Commission (SEC) and Ripple over the status of XRP continues, with Ripple defending its claim that XRP is a currency and not a security. Ripple's lawyers have requested information on how the SEC determined Ethereum was not a security, believing it could impact XRP's classification. Although the SEC faces a deadline of June 13th to hand over unredacted emails related to the case, investors appear to be pricing in a positive outcome, as XRP has risen 23% over the past 30 days.
Our quick analysis:
In late 2020, the SEC fired shots at Ripple, alleging that its XRP cryptocurrency was a security and that the company had conducted an unregistered $1.3 billion security offering. The battle between Ripple and the SEC has been raging on for two and a half years, and the stakes have only increased.
The SEC, under the direction of Gary Gensler, has positioned itself as an anti-crypto establishment. However, Ripple's defense is based on the claim that XRP is a currency, not a security. The case has dragged on for so long that it's doubtful anyone expected a quick resolution.
Ripple's defense revolves around the Hinman Speech, an occasion when William Hinman, a former SEC director, indicated that the agency didn’t consider Ethereum a security at the time. Ripple's lawyers have been fighting to find out more about how Hinman came to that conclusion, hoping it could impact XRP's classification as well. After 18 months, Ripple finally obtained the Hinman Speech documents. Ripple's on a roll; it recently won a case to unseal the speech and can use it to make its case.
Meanwhile, the SEC seems to have deleted Hinman's biography from its website, and many are looking forward to the June 13th deadline where the SEC must hand over unredacted internal Hinman communications.
While the entire industry seems under fire, XRP's price remains resilient, adding over 23% to its price in the last month alone. Yet, the June 13th deadline could impact XRP's price. Regardless of the outcome, it remains to be seen what's next for XRP.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
In late 2020, the SEC fired shots at Ripple, alleging that its XRP cryptocurrency was a security and that the company had conducted an unregistered $1.3 billion security offering. The battle between Ripple and the SEC has been raging on for two and a half years, and the stakes have only increased.
The SEC, under the direction of Gary Gensler, has positioned itself as an anti-crypto establishment. However, Ripple's defense is based on the claim that XRP is a currency, not a security. The case has dragged on for so long that it's doubtful anyone expected a quick resolution.
Ripple's defense revolves around the Hinman Speech, an occasion when William Hinman, a former SEC director, indicated that the agency didn’t consider Ethereum a security at the time. Ripple's lawyers have been fighting to find out more about how Hinman came to that conclusion, hoping it could impact XRP's classification as well. After 18 months, Ripple finally obtained the Hinman Speech documents. Ripple's on a roll; it recently won a case to unseal the speech and can use it to make its case.
Meanwhile, the SEC seems to have deleted Hinman's biography from its website, and many are looking forward to the June 13th deadline where the SEC must hand over unredacted internal Hinman communications.
While the entire industry seems under fire, XRP's price remains resilient, adding over 23% to its price in the last month alone. Yet, the June 13th deadline could impact XRP's price. Regardless of the outcome, it remains to be seen what's next for XRP.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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Please, behave!