According to new legal filings this week, the US Securities and Exchange Commission (SEC) and XRP holders are again at odds in court over XRP investors trying to sue as third-party claimants in the SEC v. Ripple Labs case. The SEC’s response to the latest filing makes its hostile stance against XRP traders apparent. The latest developments in legal cases have done little to protect the rights of XRP traders.
As a result of the latest changes, the price of XRP Price has dropped nearly 5% in the last 24 hours to $1.44. The trade volume has increased by nearly 50% in the last 24 hours. According to data from coinmarketcap.com, the altcoin’s price is nearly 62 percent below its all-time high of $3.84.
Following updates from the SEC vs Ripple hearing, the social volume peaked many times. According to the above table, it has fallen to 16258 as a result of the SEC’s claim that XRP holders are actually XRP investors. Given the short-term effect on the ROI, this is akin to an assault on XRP HODLers’ portfolio. (The SEC’s slogan, ironically, is “protect investors.”)
According to the chart above, XRP traders have gained less than 15% ROI in the last 30 days, making it less lucrative than the majority of altcoins in the top ten. Similarly, HODLers who bought when the price was $1.9 are now losing money. With a few spikes following announcements from the hearing, the uncertainty has nearly subsided. XRP’s association with BTC and ETH, on the other hand, is over 80%. This has allowed the altcoin’s price to hold steady at $1.6 despite selling pressure on exchanges.
Attorney Jeremy Hogan, who has been following the SEC v. Ripple case since its inception, predicts that if Gary Gensler, the current SEC Chair, decides to settle with Ripple, it will happen within the next two weeks.
While a settlement will possibly benefit Ripple, there is nothing to prevent the SEC from repeating the stunt. More broadly, some investors want to punish the SEC for its poor conduct and make it less likely that it will misuse its authority in the future. In any case, the SEC needs its own version of the “Ripple Test” in order to regain legitimacy.