Cryptocurrency News

SEC takes action against Ripple, will XRP benefit?

XRP holders have won a new victory. Much has passed since December 2020, when the Securities and Exchange Commission (SEC) filed its case against Ripple Labs. Things started out in favor of the regulator, but with every new development the situation is changing.

According to a document published by the United States District Court of the Southern District of New York, represented by Judge Sarah Netburn, the commission was denied access to Ripple’s legal memo.

With this speed, The SEC would have ordered the payment company to produce communications in every format Ask or obtain “legal advice” on whether the XRP sale was subject to federal securities laws.

If granted, the proposal would be contrary to Ripple’s attorney-client privilege. The judge concluded that the company did not waive this right. However, the judge gave the SEC space to refile its motion. Per Document:

If, at a later date, Ripple extends his good faith beliefs or relies on his privileged communications in support of his impartial notice defense, the plaintiff may renew his application to the court.

Jeremy Hogan, partner at the law firm Hogan & Hogan, has closely followed the case. Legal expert said Following on Judge Netburn’s decision:

Very important because the judge stated that Ripple’s subjective beliefs are not relevant to the XRP Fair Notice defense, blocking the road that the SEC wanted to use to fight the defense.

On the other hand, the lawyer John E. Deaton, One of the community leaders of the XRP Investors Initiative to gain more relevance in action, Believes that The SEC always has little chance of winning this offer.

He believes there is not much pressure on the regulator to return to the negotiating table, but “this is another public loss for the SEC”.

How has the legal battle affected the price of XRP

With losses in the higher timeframe, XRP has reacted positively to recent developments. In the daily and 1-hour charts, cryptocurrency records gains of 5.6% and 0.1% respectively. At the time of writing, it trades at $ 0.89.

XRP with small gains in daily chart. Source: XRPUSDT TradingView

The market still seems to be correlated with the price performance of bitcoin. The number one cryptocurrency by market cap has seen one of its worst months In the last 5 years. In the daily chart, bitcoin from resistance to support is close to $ 35,000.

Source: Luke Martin

If this succeeds, XRP and other altcoins can be relieved of the bears and recover some of their lost territories. In the coming weeks, the price of BTC will have a huge impact on the entire market. Trader Credible Crypto claims that XRP can create a small squeeze and eliminate many short positions on the exchange bitfinex.

Despite the current price action, trades remain bullish. He claimed that the price of BTC may be down and recovery may be on the way. As mentioned, it can positively affect XRP. Trusted crypto said:

I know the structure below Bear Flag-y but I also see a full 5-3-5 (ABC) downwards which would mean the bottom is. It will not be a surprise to see ‘Bear Flag ‘breaking upwards. B T c.

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Avinash is a blogger, Enterprenuer, marketer and author. He is very good affiliate marketer and Product Reviewer.