-The SEC vs. RIPPLE (XRP) advances as the court orders for a conference call on Hinman papers on June 7th. -XRP celebrates ten years in the crypto-blockchain decentralized industry. -The conference on Hinman’s emails is now available to the public, with new call-in information.
The SEC vs XRP case represents a gap in the government’s understanding of cryptocurrency and an unwillingness to learn before litigation. Either way, it’s a major moment in the history of the crypto legislature; it will set a precedent over whether or not a cryptocurrency is a security.
Ripple (XRP) has been in a lengthy court battle (that has severely damaged its reputation. As a result, many investors are selling out. The SEC filed a complaint against two Ripple Labs executives and the company itself on December 21, 2020. Instead of meeting with the SEC's requests, Garlinghouse announced that they would defend themselves in the XRP court action. Coinbase announced the delisting of the XRP token on December 30, 2020.
XRP tumbled 37 per cent upon delisting, bringing its drop to 60 per cent in the week since securities regulators accused Ripple of issuing more than US$1 billion in unregistered tokens. Coinbase said that it will fully suspend trading XRP on Jan. 19, but will continue providing custodial services for clients.
F
On 8 March 2021, the SEC requested an expedited hearing before the court. On 22 March 2021, Judge Netburn informed the SEC that the Ripple (XRP) token has monetary value and usefulness. That set it apart from Bitcoin and Ethereum.
On Tuesday, 7 June 2022, at 3:00 p.m. EST, United States Magistrate Judge Analisa Torres held a conference call to discuss the SEC’s renewed assertion of attorney-client privilege as to internal documents related to then-Director Hinman’s 14 June 2018 speech. The in-person conference call took place in Courtroom 23B at the Daniel P. Moynihan Courthouse in New York City.
The SEC filed motions invoking attorney-client privilege in its continuing effort to prevent the public release of Hinman emails. The emails cover a famous Ethereum speech, in which a former SEC official stated that Ether was not a security. SEC claim that the privilege protects these records because they documented confidential discussions between Hinman and SEC attorneys. However, Ripple contends that this privilege may not cover the papers for several legally-right reasons.
Although the “biggest decision in the XRP lawsuit” was already called, in April 2022, when Judge Sarah Netburn denied the SEC’s motion for reconsideration, the upcoming ruling serves the same purpose: to put an end to the SEC’s attempts to prevent the production of the infamous documents. The hearing was earlier this month and the court’s final ruling on the Hinman debacle is expected to come down this week.
The expectation is that, like in the previous ruling, the court’s next decision will include “a bulletproof section” that prevents the SEC from delaying the issue further via an appeal to the 2nd Circuit. Besides the lower probability of further delays, the upcoming order may trigger a settlement between both parties sooner rather than later. This is because many suspect the SEC will not produce its internal files, even if it costs it the whole case.
Could recent news finally signal the incoming closure of this case? And what might that mean for XRP price predictions? Ripple is said to be considering an initial public offering after its legal battle with the U.S. Securities and Exchange Commission has ended. Following that, the firm will explore the option of public listing. SEC’s lawsuit against XRP could have a significant impact on cryptos in the future. If the SEC wins, it may have sweeping consequences for crypto businesses. If Ripple succeeds, it would be a seismic shift in the crypto world.
If Ripple wins the lawsuit, it will not have to pay out $1.3 billion and will therefore be able to continue working on projects like the ones just mentioned. That will probably be bullish for XRP. Today, the coin is gaining 18% as investors digest the news, reaching a price of about 80 cents. Trading volume is also rocketing upward; over $3.4 billion in XRP is trading hands today, a near 250% increase over yesterday. While the court ruling on Hinman’s speech holds the key, crypto market headwinds will influence too. Investors should consider regulatory landscape shift, U.S economic data, and Fed’s fiscal policy.