Ripple Labs and XRP have been in the news lately, following the recent proceedings in their court case with the SEC, and the calls for an immediate ruling, so the case can be put to rest.
Two years ago, the SEC accused Ripple Labs of misleading their investors, challenging them to a case in court. In the court case, the SEC maintained that Ripple Labs was in the wrong because they failed to register their cryptocurrency as security and didn’t provide full disclosure to their clients.
In 2022, the court case is on its way to being put to rest, and Brad Garlinghouse, CEO of Ripple Labs, has expressed optimism that the Ripple foundation can beat the SEC in court.
The Court Case in Detail
For a better perspective, the details of the SEC’s case against Ripple Labs and two of its executives is that they raised over a billion dollars through an unregistered and illegal digital asset cryptocurrency offering.
During an interview, Garlinghouse, the Ripple CEO, maintained that beating the SEC was possible because, to begin with, all of the tradings that go on with XRP as a cryptocurrency have nothing to do with the company. He also stated that what the SEC is trying to do is merely a means to “overreach the statute.”
Garlinghouse also addressed the misconstrued idea that Ripple runs the infrastructure that supports the XRP ledger. He states that the XRP ledger is an open-sourced piece of software and that Ripple Labs has no control over it.
Garlinghouse states that the first time he met with the SEC, he went with no lawyers. This was because he never even imagined that XRP may ever be considered a security. He adds that Ripple Labs is about to spend about $100 million to defend itself against the SEC. Something that is not only necessary for Ripple itself but the entire cryptocurrency ecosystem as a whole.
Ripple (XRP) Price Analysis
So far, bitcoin, Ethereum, and other altcoins seem affected by the recent rise of DXY against most other currency indexes. Stocks and cryptos have crashed recent, and even the British pound is at a record low against the US dollar
The price of bitcoin has dragged investors and traders alike through a rollercoaster ride, oscillating between $22,000 and $18,200. This price choppiness has affected the performance of most other cryptocurrencies.
XRP surged in price, to the $0.56 level, right after the news that Ripple Labs’ court case against the SEC may be coming to a close very soon.
However, the cryptocurrency price is in a correction, dropping to $0.4295.
The bulls are expected to defend this level aggressively. The price of XRP against the dollar is expected to consolidate for a while before a subsequent bounce or breakdown of the $0.41 support.
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)