When the XRP token launched in 2012, no one expected this humble cryptocurrency to spark one of the most iconic legal battles in blockchain history the SEC vs Ripple lawsuit. We also use third-party cookies that help us analyze and understand how you use this website. In partnership with Mastercard, Latin Americas most popular exchange, Bitso launched a debit card in Mexico offering cryptocurrency rewards on customers purchases. Even if youre not an XRP holder, the result of the XRP lawsuit is expected to change the way cryptocurrency is regulated in the United States. Ripple Labs is a technology company that was designed to harness efficient payments and create blockchain solutions for financial institutions. ByJibin George. What arguably should affect your decision on XRP is its technical posture. The company has sold about $1.2 billion in XRP since then, according to Messari. Copyright Necessary cookies are absolutely essential for the website to function properly. He stated, If XRP is found to be a security, the SEC would say that exchanges should have known. If that happens, exchanges that operate within the US will face changes as side effects from the ongoing conflict with the SEC. Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Article printed from InvestorPlace Media, https://investorplace.com/2021/07/even-if-ripple-wins-its-sec-lawsuit-the-crypto-ballgame-isnt-over/. A win for Ripple may be bullish for XRP and vice versa. Long before Ethereum was even a twinkle in Vitalik's eyes, Ripple was already one of the largest digital assets in the crypto market. . With two outs at the top of the third inning, Javier Bez hit a chopper to the third baseman, who subsequently threw to first for what should have been an easy out. Analysts are starting to really think Ripple can beat the case . The SEC initiated legal action against Ripple Labs based on allegations that the company had offered unregistered securities in the form of XRP tokens. The lawsuit, which was filed in federal district court in Manhattan, accuses Ripple and its two co-founders of raising over $1.3 billion through "an unregistered, ongoing securities offering for digital assets.". #XRP returns to battling #Ether for the number 2 spot. With an expectation of profits: The investor expects profits, meaning that they buy the security in the hope of earning a return on their investment. What Is the Best EV Stock to Buy Now? If Judge Torres denies the SECs motion to strike the Fair Notice Defense and Judge Netburn overrules the SECs claim that the #BTC #ETH & #XRP documents are privileged, GaryGensler and the SEC could be facing a very significant precedent setting loss with huge implications, he continued. In terms of money, its quite obvious what would happen if they win. The current method of transferring money across countries uses something called swift. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. Therefore, all eyes are on the defendant company as it pushes for the timely deposition of former SEC director William Hinman. The trend of deeming other, lesser known Cryptos a security is broken. Are Payment Cards To Face The Same Fate As Cash In The Virtual Age? Bitcoin (BTC) price edges closer to the lower limit of its bullish structure after Thursdays market sell-off. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors. Other interesting coins are also around (from ApeCoin to Tamadoge), meaning that gain-hungry traders can still keep themselves busy while they wait for the Ripple-SEC case to end. DOT could witness a 20% crash in the short-term, in response to the tumultuous events in crypto. Get the latest crypto news delivered to your inbox daily. I know the SEC offered a buyback of the Veri token but I do not know the specifics. The U.S regulator seems ill-prepared to win the case, thus giving Ripple the upper hand. The SEC does not like losing lawsuits. Although John E. Deaton has come to the conclusion that only Bitcoin and XRP would be safe after the abovementioned settlement, Ripple officials have stated they have gone forward with the lawsuit as a means to protect their interests but also the cryptocurrency industry. The ledger uses an efficient consensus mechanism, which paves the way for fast, low-cost transactions. If Ripple loses the SEC case, more cryptocurrencies will likely be regulated by the SEC as securities moving forward. "So what happens to XRP holders if XRP is declared a security and has to be registered with SEC?", a Twitter user recently asked John Deaton, the attorney representing over 67,000 XRP holders with amicus curiae status in the case. Judge Sarah Netburn is performing an in camera review of the documents the SEC claims to be privileged information in order to decide whether they can be handed over to Ripple as part of the fact discovery. Its because he wants the option of going after them. But in the end, it might not even matter. Inexplicably, the first baseman bought it and chaos erupted. It will almost certainly have a . Ripple meanwhile contends . If the court decides to rule in favor of Ripple and dismisses the lawsuit, the price of XRP could boost further. These cookies ensure basic functionalities and security features of the website, anonymously. The big issue for the SEC is that, according to them, Ripple Labs and its executives conducted unregistered security offerings by selling XRP tokens to investors. This cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website. XRP holders who never sold win. Settle the case and flip the switch Brad. Cardano (ADA) price sees bulls leaving the scene as ADA tanks on Friday morning. So what happens to XRP holders if XRP is declared a security and has to be registered with SEC?, a Twitter user recently asked John Deaton, the attorney representing over 67,000 XRP holders with amicus curiae status in the case. Attorney John Deaton's filing of a motion to intervene two weeks ago was a spanner in the works for many who expected the ongoing lawsuit between the United States SEC and Ripple Labs to be a straight and direct back-and-forth. Please read our privacy policy and legal disclaimer. Ripple or XRP prices surged in 2021, but had not yet reached the heights from late 2017, making this digital coin different from other cryptocurrencies. This will broaden the definition of the Howey test, setting a legal precedent that could result in other similar cryptocurrencies also being classified as securities. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The winning argument Ripple makes will be added to case law for future cases. The lawsuit could have a positive or negative effect on the price, depending on the outcome. No matter where you live, the outcome of the Ripple lawsuit will impact how crypto is taxed and regulated in your own country. Is Ripple setting the stage for a win against the SEC: What to expect from XRP price? All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The Securities and Exchange Commission's case against Ripple is drawing to a close. The final judgment created a Fair Fund, so the penalty, along with the disgorgement and prejudgment interest, could be distributed to investors harmed by the Defendants conduct. Twitter sets this cookie to integrate and share features for social media and also store information about how the user uses the website, for tracking and targeting. If #XRP were to hit $5, Ripple could sell 10% of the monthly unlocked escrow and pay a settlement / fine totaling as high as $500 million providing Gensler with a big public victory & bragging rights. [{"url":"https:\/\/cryptonews.com\/news\/best-crypto-to-buy.htm","name":"Best cryptocurrency to buy\/invest in","children":[]}]. 2023 FinanceFeeds Limited. All the lingering doubts around whether crypto is a security or currency only discourage the general public and institutional investors from entering the space. Why NFTs now? XRP has traded sideways in a support zone from $0.37 to $0.41. #XRPHolders who never sold win. There is no clear bullish/ bearish divergence in RSI. All rights reserved. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The battle will likely drag on into next year after Ripple and the SEC agreed on a schedule for the next phase of the case: Filings and hearings on motions for summary judgment will extend to December. HSBC Holdings and Nationwide Building Society joined major UK banks in banning purchases of bitcoin and other cryptocurrencies via credit card following a recent regulatory crackdown. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. As Millennials and Gen Z become the dominant consumer class, the way payments are made is changing. #ADA?. However, it should be noted that even if Ripple manages to win the fair notice motion, it doesn't guarantee a win during the trial. The reputation of Ripple labs would suffer a severe blow, and the network may struggle to attract new users. This website uses cookies to improve your experience while you navigate through the website. Most recently, MoneyGram has announced it will halt its partnership with Ripple, and the use of its XRP token, after the SEC launched its lawsuit. Investors had until November 1, 2021, to submit a claim for eligibility for the Veritaseum Fair Fund. However, you may visit "Cookie Settings" to provide a controlled consent. Your email address will not be published. This article is for information purposes only and should not be considered trading or investment advice. An Investment of Money: The Howey Test requires that there must be an actual transfer of funds in exchange for an investment opportunity. Entwistle confirmed that Ripple is already in talks with over 20 central banks worldwide. Ripple continues to be locked in a court case trying to establish the status of XRP. XRP gets listed on exchanges that delisted it. The outcome of the SEC case will have consequences not only for XRP but for BTC, ETH, and the entire crypto community. Most likely, the status quo would remain in effect during an appeal. Follow us on Twitter @coinmonks and Our other project https://coincodecap.com, Email gaurav@coincodecap.com, We deliver the latest, breaking crypto news about Bitcoin and others. And that Ripple, its two top executives named in the suit, along with millions of retail holders, should have known this all along, even though the agency never did. The SEC has already begun cracking down on token staking, with top exchanges like Kraken being forced to cancel their staking services and pay $30M USD in fines. In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have rebounded slightly in February. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Although US equities were able to trigger a turnaround and close Thursday off with a net gain, someone in Asia clearly did not get the memo. They have joined other well-known companies such as Binance US, Swipe, and OKCoin that have stopped transacting or using XRP, leaving US investors in limbo. The Ripple platform is an open source protocol which is designed to allow low cost and fast transactions. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. Ripple and the SEC were recently allowed to re-brief the court with new arguments on the issue amid last minute changes in the law concerning DPP. Cronos (CRO) price sold off this Friday around the time Europe began trading. The Currency Analytics. Security wise, I am unsure. You also have the option to opt-out of these cookies. 3 Cream-of-the-Crop Growth Stocks to Buy for 2023, 7 Penny Stocks Poised for Explosive Growth in 2023, Even If Ripple Wins Its SEC Lawsuit, the Crypto Ballgame Isnt Over. When the United States Securities and Exchange Commission filed legal action against Ripple Labs and its top-two executives in December, alleging that its XRP coin was in fact a security and that. 2020 was a striking year for cryptocurrencies as it ended with the most prominent bull run since late 2017. This question has been asked many times by the thousands of XRP holders who await a conclusion to the SEC v. Ripple lawsuit, but no answer has been able to satisfy the inquiring minds. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); Get the latest Crypto & Blockchain News in your inbox. As seen in the chart above, the Relative Strength Index (RSI) is close to the oversold region. Back in January, for instance, the court must decree that the SEC has to hand over emails relating to an important speech Bill Hinman gave in 2018, which concerned whether BTC and ETH are securities (and which may also concern XRP). The SEC can use the money to create a fund that helps reimburse harmed #XRPHolders.. Ripple Labs, Inc. is still creating new business opportunities by expanding its operations with Japanese banks and leading a new ledger project for central banks. The claim is that they traded $1.3 billion in their cryptocurrency XRP as a security without registering it with the SEC. Winning this motion is not an indicator that the judge will . Upgrade your inbox and get our DailyCoin editors picks 1x a week delivered straight to your inbox. Although the market has turned south on the XRP token, analysis indicates the price is becoming stable, with an upward trend and a signal for a potential breakout for the token.