Ripple, the company behind the XRP cryptocurrency, is braced for a bombshell after a judge ruled a former regulatory official can be questioned as part of the ongoing legal battle over the sale of $1.3 billion worth of XRP.
However, charts show the XRP price 50-day moving average is about to fall below the 200-day moving average—a pattern known as the “death cross”—suggesting further XRP price pain could be on the way
Late last year the Securities and Exchange Commission (SEC) sued Ripple, its cofounder Christian Larsen and its chief executive Bradley Garlinghouse in New York on the grounds that XRP should be treated as security similar to company stock and was never registered as such.MORE FOR YOUCrypto Price Prediction: Billionaire CEO Reveals Surprise Link Between Bitcoin, Ethereum, Dogecoin, Facebook And TeslaMorgan Stanley Co-Leads $48 Million Investment To Bring Blockchain To Capital MarketsCoinbase Cofounder Issues Serious Crypto Price Warning As Bitcoin ‘Death Cross’ Fear Spreads
Ripple has denied the claims and argues the SEC can’t regulate XRP because it’s a medium used in international and domestic transactions.
On Thursday, New York District Court judge Sarah Netburn ruled former SEC director of corporation finance Bill Hinman can be questioned by Ripple—whose court appearance is now set for July 27.
“This is not a run-of-the-mill SEC enforcement case,” Bloomberg quoted Netburn as saying on a Thursday conference call, adding that Hinman’s deposition wouldn’t “open the flood gates” on government officials who have spoken on laws, regulations, or policies as the SEC had claimed when it sought to block Hinman’s testimony. She said the case “involves significant policy decisions in our markets, the amount in controversy is substantial and the public’s interest in this case is significant.”
In 2018, Hinman gave a speech that argued major cryptocurrency ethereum is not a security and Ripple will try to draw comparisons between XRP and ethereum’s ether token while making suggestions Hinman’s former law firm’s membership of the Enterprise Ethereum Alliance created a conflict of interest.
However, reaction to the ruling was muted, with commentators calling it a “small victory.”