Key Insights
- According to the Blockchain Association, this legal battle is important not only for XRP but for the future of the entire cryptocurrency and blockchain industry at large.
- XRP, according to the SEC, was an unregistered security at the time of the IPO.
- So far, XRP has remained in its symmetric triangle formation and has tested the lower support since mid-October.
As the months roll by, the tides continue to turn in XRP Ripple Labs’ favor concerning their battle with the US Securities and Exchange Commission (SEC).
Barely a month after their victory over the SEC in the legal battle over the Hinman Documents, Ripple Labs has scored another goal against their opponent.
This week, a US-based cryptocurrency advocacy group known as the Blockchain Association has thrown its weight behind Ripple Labs and is now trying to help fight against the SEC’s “oppression.”
According to the Blockchain Association, this legal battle is important not only for Ripple Labs but for the future of the entire cryptocurrency and blockchain industry at large. The Association has added that it will stand with the crypto community in America by signing an “Amicus Brief” in ongoing legal action between both parties.
An Amicus Brief is a Latin word that translates to “friend of the court.” Individuals or parties who are not part of the original case but offer (and are permitted) assistance, information, or expertise are called an “Amicus Curiae.”
Support from the Blockchain Association
The Blockchain Association released a post on its website, stating that it has filed for an Amicus Brief in the legal battle between the SEC and Ripple.
Recall that in September 2022, the SEC sued Ripple Labs on the grounds of the latter offering XRP via an Initial Public Offering (IPO).
XRP, according to the SEC, was an unregistered security at the time of the IPO. The SEC also alleged that Ripple raised funds illegally (about $1.3 billion) by selling the cryptocurrency in exchange for non-cash services like Labor and marketing.
According to the SEC, the founder and former CEO of Ripple, Brad Garlinghouse, conducted personal XRP transactions totaling about $600 million, failed to register their XRP offers, and violated several US Securities laws.
According to the Blockchain Association’s publication, this case between the SEC and Ripple stems from the SEC’s “overly broad” interpretation of the Howey test. They also mention that this lawsuit is only one of the SEC’s numerous efforts to regulate cryptocurrencies by enforcement.
For context, The Howey Test is a method for establishing whether a transaction qualifies as an “investment contract” based on a case decided by the U.S. Supreme Court.
The Blockchain Association explained in the article published last week, why Gary Gensler, the chairman of the SEC, and his views on securities rules could have “devastating implications” on the cryptocurrency and blockchain space.
The Association claims that the blockchain industry benefits greatly from crypto since tokens can be used to pay for goods and services, transfer intellectual property rights, maintain inventory, and serve specialized purposes inside a blockchain project.
The Blockchain Association further notes that the SEC disobeys unambiguous Supreme Court and Second Circuit decisions that state that international transactions are outside the SEC’s jurisdiction.
Additionally, according to the association, this case offers the crypto industry enough grounds to stand against the SEC’s “regulation by enforcement” plans. This, according to them, might even pave the way for updated regulations and laws for the sector.
Ripple (XRP) Price Analysis
Despite the price explosion of cryptocurrencies across the market last week, XRP failed to move with such enthusiasm. So far, XRP has remained in its symmetric triangle formation and has tested the lower support since mid-October.
While the bulls on XRP have failed to show considerable strength against the bears, they have shown some strength in holding the price of XRP from falling below the formation’s lower support.
The RSI on the daily chart on XRP shows neutral conditions, indicating that the bulls and bears may be evenly matched. The MACD supports the RSI’s verdict but suggests that the bears may have a slight edge against the bulls.
The price of XRP is also above its 50 and 100-day simple moving averages, indicating that the bears may meet significant resistance from the bulls if they attempt to take full control of the market.
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