With the upper hand in Ripple vs SEC Battle, XRP goes to the top

All eyes are on the updates to the Ripple-SEC trial as the case moves toward a new frontier. For a long time, it was felt that the Securities and Exchange Commission, which sued the Ripple Lab, had the upper hand in the case. But the scenario changed when Ripple asked the court to include a chain of emails in its investigation. After the shock, XRP appears to be going sharply higher to regain its position. If Ripple wins the lawsuit, it will be a massive setback for government agencies planning to regulate cryptocurrency transactions.

After the case was registered, the XRP price suffered a huge loss. The cryptocurrency lost its market position and slipped from third to seventh position within a few days. Notably, even parent company Ripple did not take the case lightly. Rather than planning a simple settlement, Ripple stepped in to prove his stance by taking the stalemate to court and drawing more eyes and attention to the allegation. After all, Ripple gets what is expected. Yes, the upper hand in the Ripple vs. SEC case. There have been times when the case turned out to be entirely in favor of the SEC. In the worst case scenario, Ripple would have lost its XRP cryptocurrency and the entire digital asset market must have faced the heat of judgment. However, losing to the SEC could cost even more as it undermines the credibility of government agencies. The Ripple vs. SEC case is not expected to end anytime soon. But whenever that happens, the result will be a major revolution in the cryptocurrency space.

The basics of Ripple XRP

Ripple XRP was launched in 2012 and is one of the most important and widely used cryptocurrencies in the world. Similar to Ethereum, Ripple describes both its payment platform and the local currency. The parent distributor of XRP is called RippleNet.

Ripple is often viewed as something more than a cryptocurrency. Unlike Bitcoin, Ethereum and many other cryptocurrencies, XRP does not market itself due to its decentralization. In contrast, the digital token is closely related to bans, investment firms and corporations around the world. This sets it apart from other crypto providers. Although XRP is constantly getting into trouble as critics accuse Ripple contradicting the whole nature of decentralized cryptocurrencies, enthusiasts claim that the bond could be the key factor in Ripple’s success.

Ripple vs. SEC court battle

In December 2020, the Securities and Exchange Commission filed a lawsuit against Ripple and its two top executives. The government agency alleges that Ripple and Christian Larsen, co-founders, chairmen and former CEO, and Bradley Garlinghouse, the company’s current CEO, broke the law by selling unregistered securities. The SEC claimed to have raised over $ 1.3 billion through an unregistered ongoing offering of digital asset securities.

According to the complaint, since Jan. Year-round raised funds for in-kind contributions such as labor and market-making services through its digital asset called XRP. Larsen and Garlinghouse are also convicted of personal, unregistered sales of XRP totaling around $ 600 million. The complaint alleges that Ripple did not register its offers and sales of XRP to meet a registration exemption, in violation of the registration requirements of federal securities laws.

The lawsuit took a massive blow to the XRP price when the digital token managed moderate value amid large bull runs. The SEC case burned half of XRP’s $ 28 billion market valuation. In addition, many crypto platforms have also sold XRP trading from their platform after the allegations.

At the center of the battle between Ripple and the SEC is also a debate over the famous speech by former SEC director William Hinman in 2018 in which he stated that Ethereum was not a security. The speech sparked a massive spike in the price of Ethereum. A recent update in the Ripple vs SEC case is that XRP has found descriptions from the SEC’s privilege log that suggest they may be of high relevance to this case. At its center is an email chain discussing conversations with third parties the defendants know to have received from the SEC guidance on how to analyze their digital asset as described in Director William Hinman’s June 14, 2018 speech have received the framework set out. The allegations state that the SEC sent an email to a third party asking them to analyze a digital asset based on the factors in the Hinman speech. The current news is that the judge on the case has ruled in favor of Ripple’s motion and will add the documents and email chain for review on camera.

Another thing that gave Ripple the upper hand is that the judge also allowed a group of people who own digital tokens associated with Ripple Labs to offer their “meaningful perspective” on the case.

What is that triggering XRP price like?

At the time of writing, the XRP price is $ 1.15 with a market cap of over $ 50 billion. Long-term projections suggest that Ripple’s price will hit $ 2 by the end of 2021. The upward trend is expected to follow in the coming years, with XRP reaching $ 8 by 2025. With the XRP price already well on its way, the battle between Ripple and SEC comes to its worth as a booster. If people start rolling out more XRP in the coming days, the price could hit $ 10 even sooner than expected.

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