While the cryptocurrency market is in the red, Ripple’s XRP is almost showing a price increase of around 30%. What is the reason for this bizarre growth?
XRP price surges
While all cryptocurrencies have trended down over the past week, especially ether (ETH), which fell 20% after the merger, XRP is up 27% over the same period.
XRP is Ripple’s cryptocurrency, for a decentralized international payment solution. If you’d like to learn more, we’ve covered the project in detail on our dedicated worksheet.
7-day price of XRP
The rise in XRP price can be explained by different factors.The main reason is likely to be the recent rebound The lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) U.S.
In fact, the US Financial Police started a legal battle in 2020 against Ripple and its 2 leaders, accusing them of selling XRP tokens, SEC classifies them as unregistered securities.
This case goes well beyond the Ripple case, as the latter can initiate legal proceedings if the judge in charge of the final ruling decides in favor of the SEC. For cryptocurrencies that are very similar or remotely similar to XRP.
But recently, the parties have filed a motion for summary judgment, a legal process so that a competent court can Make decisions based on established facts without waiting for the end of the trial.
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Ripple and Ripple’s bullish bullet
Some Ripple representatives said that the SEC seems to have difficulty proving that XRP can be classified as a financial security.
like this, Stuart AlderottiA member of Ripple’s general counsel, tweeted about the possibility of the SEC admitting defeat.
My hot topic – after two years of litigation, the SEC can’t determine any investment contracts (which the statute requires); and can’t satisfy a single branch of the Supreme Court’s Howey test. Everything else is just noise.
— Stuart Aldereroty (@s_alderoty) September 17, 2022
“My point – after two years of litigation, the SEC cannot determine any investment contract (which is required by law); and fails to meet the single criteria of the Supreme Court’s Howie test. Everything else is just noise. »
same story Brad Garlinghousethe CEO of Ripple, who also spoke on Twitter:
“The filing today makes it clear that the SEC has no interest in enforcement. It wants to redo everything and expand its jurisdiction far beyond the powers Congress has given it in an impermissible effort.”
Additionally, Ripple has defended itself, saying that XRP cannot be considered a financial security. as long as they are not related to any investment contract. Therefore, investors will not have any special rights in the acquired XRP.
As such, there remains a need to keep an eye on the evolution of the trial, which may not leave the market indifferent in one case and the other.
👉 In the News – Transactions on Ethereum (ETH) “Happen in the US” for the SEC
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