Observers believe that Wednesday’s XRP price pump indicates that Ripple has the upper hand in its ongoing litigation with the SEC.
Wave native token XRP It has recently experienced an 8% price increase following a ‘favorable’ court ruling. Digital currency surges after presiding judge in long-drawn Ripple v. Ripple seconds Case denied a motion filed by the regulator.
Ripple’s XRP was trading at 46 US cents at 12:45 pm Singapore time on Wednesday. Furthermore, the recent price surge of XRP marked the crypto’s highest climb in seven weeks. This could be because investors interpreted Judge Analisa Torres’ ruling as favorable to Ripple.
With a market capitalization of around $24 billion, XRP remains the sixth largest digital currency in the world.
Events leading up to the XRP price pump
Yesterday, District Judge Torres denied the Securities and Exchange Commission’s motion to seal the entire William Hinman documents. A district court judge ruled that the documents related to a June 2018 speech by the former SEC director were “relevant to the performance of a judicial function.” However, Judge Torres said she would allow the SEC to redact the personal information mentioned in the documents.
The decision by a US District Court judge for the Southern District of New York cited a similar decision by a magistrate judge in the same court. In January last year, Magistrate Judge Sarah Netburn previously ruled that the Hinman Speech documents be handed over to Ripple as part of the ongoing case. In the present, Judge Torres wrote:
“As Judge Netburn found in his order dated January 13, 2022, the Hinman speech documents are not protected by deliberative process privilege because they do not pertain to an agency position, decision, or policy. Therefore, sealing these documents would not be concerned with maintaining ‘openness and candor’ within the agency, nor would such an interest be sufficient to override a strong notion of public access.”
The Hinman documents refer to a 2018 speech by the former SEC corporation director of finance on crypto and securities to Ripple. At that time, Hinman described the ether (ETH) as a non-security and therefore, not liable to be sealed in a court order. Hinman also said that bitcoin (B T c) was “decentralized” (and thus, not a security). However, Hinman’s assessment went against the statutory standards that define securities.
SEC case against Ripple believed to be compromised by district court ruling
In keeping with Hinman’s previous stance, Judge Torres’ ruling is a blow to the SEC’s long litigation against Ripple. On the contrary, the ruling could turn the tide in favor of the remittance network as Development CEO brad garlinghouse Awaiting a conclusion. garlinghouse recently Tweeted Regarding the SEC’s double standards regarding crypto designation. Furthermore, the CEO said that the lack of clarity from the securities regulator is hindering the growth of the crypto industry. Garlinghouse’s thread also echoed the sentiments of other crypto leaders that the SEC is bluffing its way through enforcement actions. He believes that all actions should follow established rules instead.
In 2020, the SEC sued Ripple for failing to register XRP as a security. The regulator has long held to its belief that most tokens are securities and thus fall under the same regulatory purview. At the same time, observers widely believe that the final outcome of the Ripple vs. SEC case will have far-reaching effects on the US digital asset space.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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