Ripple Responds to SEC Lawsuit Over XRP Sales
The U.S. Securities and Exchange Commission (SEC) is ignoring that the XRP cryptocurrency has utility, fintech startup Ripple alleged in its response to a securities complaint filed by the regulatory agency.
In a Friday filing, Ripple Labs pushed back against the SEC’s allegations, which claim the San Francisco-based firm violated U.S. securities laws for over seven years by selling $1.3 billion worth of XRP tokens.
“The functionality and liquidity of XRP are wholly incompatible with securities regulation. To require XRP’s registration as a security is to impair its main utility,” the response said.
Related: Market Wrap: Bitcoin Bumps to $38.6K While DeFi Exchanges Hit $50B
In a 93-page filing, Ripple responded to each of the SEC’s paragraphs. In its affirmative defenses, Ripple stated that XRP is not a security or investment contract, and the firm’s sales or distributions of XRP are likewise not investment contracts.
Ripple rebuttal
The SEC sued Ripple in December 2020, alleging the company, CEO Brad Garlinghouse and Chairman Chris Larsen sold over $1 billion in XRP, promoted the token and paid third parties to support the cryptocurrency.
Parts of Ripple’s response seem to focus on what XRP actually does, in the company’s view, saying the SEC complaint ignored that XRP is open source and claiming that its price has correlated with the price of bitcoin and ether.
“The Complaint mischaracterizes advice that Ripple received in 2012, from which a reasonable reader actually would have concluded that Ripple Credits (a past name for XRP) were not a security,” the filing adds a few paragraphs down.
Related: After GME, Dogecoin and Bitcoin, Chinese Traders Are Betting What Will Pump Next
Ripple is also claiming that the SEC did not provide fair notice that its sales of XRP might be violating the law.
It pointed to its settlement with the U.S. Department of Justice and the Financial Crimes Enforcement Network in 2015, which registered XRP as a convertible virtual currency and allowed for sales and secondary market transactions.
Story continues
“Upon information and belief, Plaintiff knew of that 2015 settlement and yet, for years after, Plaintiff provided Defendants with no clear notice that, in Plaintiff’s view, Defendants’ prospective XRP sales as permitted by the agreement would nevertheless constitute a violation of another federal law,” the response said.
Commodity clarity
In addition to filing its response, Ripple filed a Freedom of Information Act request for documents from the SEC on how it determined that bitcoin and ether, the top two cryptocurrencies by market capitalization, are not securities.
“To date, they have offered no guidance for that determination, hindering responsible players like Ripple from being able to innovate in the U.S. to bring faster, cheaper and more transparent global payments to consumers who need them the most. As we have said for many years, we’re simply asking for the rules to be clearly stated and applied consistently,” a spokesperson said in an emailed statement.
XRP is up nearly 10% over the past 24 hours, joining a broader spike across the crypto market that saw dogecoin jump over 700% on Thursday.
Read the document:
Related Stories
Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – January 30th, 2021
A mixed start to the day saw Ethereum fall to an early morning intraday low $1,286.56 before making a move.
Steering clear of the first major support level at $1,248, Ethereum rallied to an early afternoon intraday high $1,442.88.
Ethereum broke through the first major resistance level at $1,391, before a late pullback.
Coming within range of the second major resistance level at $1,449, Ethereum slid to $1,332 levels and into the red.
Finding late support, however, Ethereum bounced back to $1,410 levels before ending the day at sub-$1,380 levels.
At the time of writing, Ethereum was up by 1.57% to $1,401.59. A bullish start to the day saw Ethereum rise from an early morning low $1,379.61 to a high $1,402.72.
Ethereum left the major support and resistance levels untested early on.
Ripple Price Analysis: XRP Skyrockets 25% in Hours, Here Are the Next Targets
XRP/USD – XRP Breaks Symmetrical Triangle.
Key Support Levels: $0.35, $0.34, $0.32.
Key Resistance Levels: $0.4, $0.417, $0.45.
XRP has been trapped in a symmetrical triangle pattern for the entire period of January 2021. The cryptocurrency was holding support at $0.263 (.618 Fib) for the past three weeks but slipped into the lower boundary of the triangle, around $0.25, on Wednesday.
From there, it rebounded higher and spiked above the triangle yesterday. However, by the daily candle close, XRP had returned into the consolidation pattern.
Today, the 22% price surge helped XRP break back above the triangle and head above $0.35. We will need to wait for today’s candle close to confirm a breakout of the triangle, but it looks very promising considering the significant boost in volume over the previous two days.
XRP-USD Short Term Price Prediction
Looking ahead, the first level of resistance lies $0.4. This is followed by $0.417 (bearish .5 Fib), $0.45, $0.476 (bearish .618 Fib), and $0.5. Beyond $0.5, the 2019 High of $0.556 will provide resistance.
On the other side, the first support lies at $0.35. This is followed by $0.34 (100-days EMA), $0.32 (200-days EMA), $0.3, $0.286 (.5 Fib), and $0.263 (.618 Fib).
The daily RSI has shot above the midline and has pushed to the highest level of bullish momentum since November 2020.
XRP/BTC – Bulls Finally Break Rangebound Trading
Key Support Levels: 1000 SAT, 867 SAT, 800 SAT.
Key Resistance Levels: 1200 SAT, 1425 SAT, 1500 SAT.
Against Bitcoin, XRP had been trapped within a range between 867 SAT and 760 SAT for the entire period of January 2021. Yesterday, XRP attempted to breakout above the range as it spiked higher but eventually closed within the range as the daily candle closed.
Today, XRP has surged higher and broke the upper boundary of the range to reach the highest price in January 2021 as it breaks the 1000 SAT level.
XRP-BTC Short Term Price Prediction
Moving forward, the first level of resistance lies at 1200 SAT (Dec 2017 lows). This is followed by 1425 SAT, 1500 SAT (Nov 202 low & 100-days EMA), 1800 SAT, and 1900 SAT (July 20 low & 200-day EMA).
On the other side, the first support lies at 1000 SAT. This is followed by 867 SAT (upper boundary of previous range), 800 SAT, and 670 SAT.
The daily RSI is also printing the highest bullish momentum seen since November 2020.
Ripple Price Analysis; XRP Finally Breaks Consolidation As Bull Momentum Hits Highest Level Since November 2020.
SPECIAL OFFER (Sponsored) Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
by TradingView.
Cryptocurrency charts by TradingView.