XRP maintains an uptrend amid good news in SEC case
XRP’s price has soared on news that soon-to-be-unsealed documents expose a key flaw in the SEC case against Ripple.
XRP, the cryptocurrency used by Ripple, was up more than 30% over the past week after a federal court judge in New York ordered documents unsealed. Traders anticipated that the currently sealed legal documents would show that the crypto company got legal advice from an outside law firm which concluded that XRP were not securities.
The SEC sued Ripple in 2020, arguing that XRP is not a currency but security, and therefore subject to strict securities laws. U.S. District Judge Analisa Torres of Manhattan has ordered that the documents must be unsealed on Feb. 17, Reuters reported.
“Once released, these documents will show that in 2012 Ripple received a legal analysis that XRP was not an investment contract,” Ripple General Counsel Stuart Alderoty said in a statement. “The fact that it took the SEC eight years to suggest they disagreed with that analysis — while XRP traded in a massive global market — is baffling.”
The SEC could not immediately be reached for comment. The agency had offered a different interpretation, saying the documents would show Ripple knew that XRP would be considered a security under federal law, according to the report.
Ripple lawyers’ advice on digital tokens set for unsealing in key SEC case
There is no dispute that Ripple sought advice in 2012 from an as-yet-unidentified global law firm in 2012, as the company contemplated the launch of a new digital token, nor that the law firm submitted two memos to Ripple analyzing the legal issues that could arise from the launch.
But Ripple and the government have offered widely divergent accounts of exactly what Ripple’s outside counsel said in the two memos, which have been docketed only under seal. The SEC contends that the documents show that Ripple and it’s then CEO, Christian Larsen, were well aware of the risk that XRP would be deemed a security under federal law. But Ripple and Larsen, who is now Ripple’s chairman, say regulators are mischaracterizing the memos. They said the documents show that Ripple’s lawyers ultimately concluded its tokens were not securities.
XRP maintains an uptrend amid good news in SEC case
XRP makes a strong uptrend
XRP has been on a major uptrend during the past 24 hours, and it has managed to break past major resistance levels. The next major resistance level for the token lies at $0.99, and this could be easily achieved if buyers maintain the buying pressure.
If it manages to break past this level, XRP could breakout past $1. The market support is strong; hence the chances of XRP making the uptrend are strong. If the token hits $1, it could go to the levels created during the bull market in November last year. The next target after breaking this resistance is $1.29, and further bulls could propel XRP to $1.40.
While the market has made significant gains, the current uptrend has attracted many short-term buyers into the market. If the broader market fails to maintain the uptrend, XRP could also decline, in which case it will go to the immediate support at $0.75. Sell-offs could also send XRP downhill to $0.62.
#Ripple’s case with SEC
The Sec protect the Moneylenders they don’t care about Us
The recent gains in XRP revolve around the positive market sentiment in the ongoing case between Ripple, its executives, and the SEC. Ripple has been granted permission by the court to respond to the Memorandum of Law by the SEC to support a motion to strike fair notice defense. Judge Analisa Torres has further ordered that three documents vital to this case be unsealed.
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