In an attempt to avoid a full trial, both the SEC and Ripple Labs filed for summary judgment over the weekend, contending that the court already has sufficient information to determine whether or not Ripple’s XRP sales violated the law.
The SEC filed a complaint against Ripple and two of its executives almost two years ago. With the next court date set for 18 October, it’s feasible that all the antagonism, document conflicts, and Howey Test interpretation dance could to a head and a verdict will be rendered within the following month.
Regardless of the weather, a win for Ripple would be a tremendous boon for the cryptocurrency market and might fuel an XRP rise.
After the release of the documents on Sunday, the value of the seventh-largest digital asset, XRP, increased to almost 40 cents. Nevertheless, as of Monday, 8:23 a.m. (EST), the cryptocurrency was trading at $0.35, a 7% decrease from the previous day’s price. Throughout the first significant cryptocurrency rally in late 2017 and early 2018, XRP surpassed $3. In April of 2021, when prices surpassed $1, the most recent high occurred.
In the case of an SEC victory, it is anticipated that the price of XRP will fall, setting the stage for a hammer-throwing show suitable for a Viking king.
According to CoinDesk, the regulator has said, among other things, that statements made by Ripple employees demonstrate that the business sold XRP and investors bought it in anticipation of a price hike.
Ripple “publicly emphasized the multiple measures it was taking and would take to find a use for XRP and protect the integrity and liquidity of the XRP markets,” according to the SEC.
Ripple argued that there was no contract between it and XRP investors since there was no common business, a need for a contract under Howey, a 76-year-old checklist of criteria for establishing whether a transaction represents the execution of an investment contract.
According to the lawsuit, many XRP holders who obtained their tokens via exchanges were unaware of the seller’s genuine identity.
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