Ripple (XRP) is getting tailwinds from two sides: Major investors have significantly increased their holdings in recent months. And the publication of internal documents in the lawsuit against the SEC exonerates Ripple.
News is making the rounds about Ripple (XRP), which speaks for the controversial FinTech company with its own cryptocurrency. On the one hand, important documents have finally been published by Ripple, around which there had long been a back-and-forth in the proceedings against the US Securities and Exchange Commission (SEC). They were classified in advance by observers as “key evidence” and concern the assessment of lawyers commissioned by Ripple from 2012, whether and how XRP could be legally brought to market in initial sales. You can find the English language originals here and here.
The SEC had requested the release of these pleadings, hoping for material to support its thesis that Ripple knew very well that it needed permission to sell XRP. But now, even in the estimation of crypto lawyer James Filan, it appears that Ripple listened to the experts in 2012. The first of the two memos warned Ripple that the proposed sale route of XRP suggested that XRP would be securities. In response, Ripple improved and was certified in the second memo, now most likely with XRP not to be classified in the Securities class, which is subject to approval by the SEC. Filan summarizes: Ripple proves pro-active with the memos and exonerates the accusation of having sold XRP recklessly or carelessly.
News from the Ripple vs. SEC lawsuit sends XRP into positive territory
The market reacted positively to the development, temporarily sending XRP up about 10 percent over the weekend. Like Filan, the second well-known legal process observer Jeremy Hogan also assessed the new situation as good for Ripple. In a video, Hogan calls the SEC’s insistence on introducing the memos as evidence in the continuing trial a “gross mistake” that authority did itself no favors with. So, at least for now, it looks like Ripple is getting the upper hand in its lawsuit with the SEC over XRP.
Even before the memos became public, there was a second important pro-XRP sign. Data service Santiment revealed late last week that Ripple whales have been buying XRP for at least just over $710 million since December 2021. This was the second major buying wave for XRP in the past five years, it said, and referred to investors who had already held more than 10 million XRP anyway. Here give themselves two approaches to the explanation: On the one hand, the price curve of XRP against Bitcoin (BTC) has developed positively in recent weeks and so the strategy could aim to have indirectly via XRP Bitcoin in the target. And secondly, XRP Whales is also likely to closely monitor Ripple’s process with the SEC. If they settled here earlier than others that the SEC is entering heavy waters with its indictment, this also means increased comeback opportunity for XRP with corresponding profit opportunities.
Bottom line: Ripple and XRP are regaining market confidence
The latest news on Ripple is positive about XRP, as evidenced by the price curve as well as the legal assessment on the SEC litigation risk. However, the last word has not yet been spoken in court and the crypto markets currently seem quite nervous in general. Thus, it is by no means clear whether the moment has already come to consider XRP with buy orders. But the great panic before a total crash of XRP seems to have faded.
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