The legal battle between the Securities and Exchange Commission (SEC) and Ripple Labs rages on.
In 2020, the SEC sued Ripple and several of its executives for the “illegal” sale of XRP that powers the network as security.
The SEC argued that this sale was an offering of unregistered securities worth about $1.38 billion. The SEC also sued Chris Larsen and Brad Garlinghouse, its executive chairman and CEO, respectively, for aiding and abetting.
Ripple’s Victory against the SEC
Last week, Ripple scored another victory against the SEC as part of the legal proceedings leading up to the end of the court case between both parties.
Judge Analisa Torres from a US District Court ordered the SEC to turn in emails and other documents written by William Hinman, former director at the SEC’s finance division.
The release of these documents was significant because, in them, Hinman mentions that Ether (ETH) is not a security because, like bitcoin (and several other cryptocurrencies), the Ethereum network is decentralized.
As many have accused the SEC of doing in the past, Ripple aims to use these documents to prove that the SEC has taken an unclear and contradictory approach to enforcing laws.
The documents may be valuable in proving that XRP is not a security and should not be treated as such by the SEC, putting an end to the two-year-long case.
Ripple XRP May Pump Hard Very soon
The price of XRP has suffered through the last few years. Since 2020, XRP has been delisted from major exchanges like CoinBase and BitStamp.
The effects of the court case are so bad that even in the market boom of 2021, XRP was one of the only cryptocurrencies that failed to reach a record high, despite the price pumps of every other crypto in the market.
Ripple Labs beating the SEC in court may change all that, and there are even valid signs of this.
Right after Ripple Labs’ victory against the SEC in the tussle for the Hinman documents. The price of XRP rallied a whole 20% in a single day.
There have even been arguments that, from a fundamental standpoint, that XRP appears undervalued compared to other cryptocurrencies like it.
Ripple XRP from a Technical Standpoint
XRP in the charts appears to have formed an interesting pattern.
Over the long term, a single breakout from the $0.6 to the $0.5 zone may be all the cryptocurrency needs to rally upwards in a 103% pump to the $0.9 level.
Ripple winning the court case against the SEC may serve as a standard that can be applied to other court cases. It may even be the boost the bulls need to push XRP through a breakout and the pump that follows.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)