RIPPLE AND SEC “MAKE PROGRESS” ON PRIVILEGE ISSUES, POSTPONE DEPOSITION TO JULY 27

The prospective competition from central bank digital currencies may come into sharp focus, said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. 

It is never fully understood what fundamentals are really driving the markets. The cryptocurrency market is down this week, following an almost established narrative in which prices tumble every month since January.

China’s government crackdown on Bitcoin has put pressure on the market, with June’s spot volumes plummeting by 42.7% and total derivative volumes decreasing 40.7%.

There are also fears that Grayscale’s Bitcoin Trust conversion into an ETF could trigger a downward move in Bitcoin and the digital asset market in general.

The European Central Bank, however, has just given the green light for the digital euro project. The prospective competition from central bank digital currencies may come into sharp focus, said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

“The edge away from crypto wallets comes as speculation surges about the impact of central banks around the world launching rival digital currencies. The chair of the Federal Reserve Jerome Powell said the introduction of CBDCs would undermine the case for cryptocurrencies and stable coins.

“His comments in a special US congress appearance came as the European Central Bank revealed it is forging ahead with an investigation into the benefits of a digital euro which would complement cash”, Ms. Streeter continued, adding “the revolution in the global payments system is firmly on central banks’ radar given how critical its smooth running is to financial stability.”

While many investors could see CBDCs as a threat to the value of their crypto holdings, a number of firms within the space have been proposing their distributed ledger systems as the ideal technology to set up a viable central bank digital currency.

Ripple is among those blockchain companies. It has developed a private version of the XRP Ledger so that central banks are able to comply with their system and legal frameworks. It is also known that Ripple’s XRP has been considered by EU member states, namely France, as the basis for the digital euro.

Brazil has also had meetings with Ripple executives, but its most recent announced guideline for a digital real makes no mention of the firm.

It has been questioned, however, if the firm is really an option for the development of a CBDC while the SEC v. Ripple lawsuit lingers.

The lawsuit, which is now expected to end by early 2022, would preferably (in the eyes of Ripple Labs) come to a close with a summary judgment on the fair notice defense. A settlement could eventually mean damages for the XRP market.

RIPPLE AND SEC “MAKE PROGRESS” ON PRIVILEGE ISSUES, POSTPONE DEPOSITION TO JULY 27

JULY 17, 2021 1:40 AM UTC, RICK STEVES

The parties plan to have additional meet and confer discussions in the next few days to further narrow and resolve the issues relating to Mr. Hinman’s deposition.

The deposition of William Hinman, ex-SEC Director of Corporation Finance, has been postponed to July 27, 2021.

Both parties have agreed to reschedule the high-profile testimony after making “substantial progress in narrowing and resolving the privilege issues”, according to the letter sent to Judge Sarah Netburn.

Writing on behalf of both the plaintiff Securities and Exchange Commission and defendants Ripple Labs, Brad Garlinghousse, and Chris Larsen, the document stated:

“At your direction, the parties met and confered this morning on the privilege issues that arose during yesterday’s hearing on the motion to quash the deposition of William Hinman. Based on this morning’s discussions, we have agreed to adjourn the July 19, 2021 deposition of Mr. Hinman, and have rescheduled the deposition for July 27, 2021.

“The parties have made substancial progress in narrowing and resolving the privilege issues, and plan to have additional meet and confer discussions in the next few days to further narrow and resolve the issues relating to Mr. Hinman’s deposition, without waiver of any party’s rights, including any righs under Fed. R. Civ. P. 72(b)(2).

“With the court’s permission, we propose to notify the Court by 5.00 p.m. on Monday, July 19, 2021 as to the status of our discussions and, if further judicial intervention is necessary, to propose a briefing schedule to resolve any outstanding issues.”

The SEC v. Ripple lawsuit has clearly caught the eye of the public. So much so that the Judge took that, and the precedent-setting nature of the case, as exceptional circumstances that justify ordering for the deposition of the former high ranking government official.

You might also want to read: 

SEC v. Ripple: Judge orders controversial deposition of ex-SEC Director

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SEC v. Ripple: “SEC is desperate for this deposition not to go forward. Desperate”

SEC v. Ripple key hearing today: John Deaton offers line of questioning

SEC v. Ripple: “Stakeholders’ engagement with ledger system” is key, says expert

SEC v. Ripple: Will the lawsuit turn against Ethereum?

SEC v. Ripple: Why is the lawsuit taking so long?

SEC v. Ripple: When will the lawsuit end?