What’s next for Ripple’s XRP in 2022?
The markets are bullish for the year ahead. Much, however, will depend upon the outcome of two lawsuits.
A claim of bias against the SEC filed by Empower Oversight, a non-profit government watchdog, will be key. Empower Oversight claims that SEC officials were biased against Ripple Lab and XRP. A verdict in favor of Empower Oversight would give the SEC more reason to close out the claim against Ripple Lab, which should favor XRP.
Such an outcome to the claims could see XRP breakout from its January 2018 ATH $3.35. Some are talking of hitting $5.00 levels in the year. An unfavorable outcome, however, would have a devastating impact on XRP and XRP holders. While torn, the markets have been more optimistic than earlier in the year.
Aside from the outcomes of the two lawsuits, broader crypto market movements will also influence, however. A bearish year for the crypto markets could see XRP fall back to $0.50 levels. The downside risk to the broader crypto market remains greater regulatory oversight.
Where can you sign up for John Deaton’s Class Action Lawsuit against the SEC?
San Francisco-based Ripple Labs has asked a court to take into consideration recent comments by Securities and Exchange Commission members Hester Peirce and Elad Roisman on a lack of regulatory clarity over crypto in an effort to block the agency’s attempt to throw out Ripple’s fair notice defense, according to a new legal filing.
- In a letter to U.S. District Court Judge Analisa Torres, Ripple defense attorney Michael Kellogg referred to a July 14 statement by SEC commissioners Peirce and Roisman on the SEC’s enforcement action and settlement with Blotics, a UK-based company that operated the once-popular crypto website Coinschedule.com, which publicized initial coin offerings. The SEC earlier charged Blotics for unlawfully touting digital asset securities..
- In their joint statement, the SEC commissioners expressed disappointment that the SEC’s settlement with Coinschedule “did not explain which digital assets touted by Coinschedule were securities, an omission which is symptomatic of our reluctance to provide additional guidance about how to determine whether a token is being sold as part of a securities offering or which tokens are securities.”
- Citing their statement, Kellogg said the commissioners’ comments made it “even more clear that during the time relevant to this case, members of the public did not have fair notice of what the law requires.”
- “Commissioners Peirce and Roisman have candidly explained that there is a ‘decided lack of clarity for market participants around the application of the securities laws to digital assets and their trading’; that the application of the Howey test to such assets ‘is not crystal clear,’” Kellogg added. “The only certainty [they] see is that people have questions about how to comply with the applicable laws and regulations.”
- The SEC, which filed its lawsuit against Ripple in December 2020, is alleging that the San Francisco payments company’s sale of XRP was an unregistered securities offering worth more than US$1.38 billion. The SEC is seeking to dismiss one of Ripple’s core arguments — that the SEC failed to provide “fair notice” that XRP transactions violated the law or that the SEC would later claim XRP itself to be an investment contract.
- James Filan, a defense lawyer and former federal prosecutor who frequently comments on developments in the SEC v. Ripple lawsuit, said in a tweet: “It will be interesting to see how the #SECGov tap dances in its responses to the defendants’ filings about the Peirce and Roisman statement in view of the obvious infighting at the highest level of the Commission. The SEC needs to put its house in order.