The ‘Ripple v. SEC’ lawsuit, to a certain extent, has been fueling volatility in the already erratic XRP market. In fact, there have been varied predictions about the positive and the negative impact the outcome of the lawsuit could bring. However, the most impacted by the result will likely be XRP holders.
Ripple and the XRP community
Ripple has always had the support of the XRP community to fall back on, whether it was during the winter that followed the 2017-18 bull market or the recent struggle with United States regulators.
However, recent developments in the lawsuit have left many in the community concerned. Such concerns have risen from the SEC’s recent filings, with some of them alleging that Ripple “failed to develop a use case” for XRP. What’s more, it’s also been alleged that Ripple CEO Brad Garlinghouse admitted to this during the launch of On-demand Liquidity [ODL] in 2018.
The same was pointed out by John Deaton, the lead attorney in XRP Holders’ motion to intervene, recently. He tweeted,
That means #XRPHolders developed the ecosystem and Ripple benefited from the efforts of us.
That makes #XRP a security of XRPHolders !
— John E Deaton (@JohnEDeaton1) May 23, 2021
The timing of the aforementioned statement is particularly important, especially since some are again speculating a possible settlement between the SEC and Ripple. It is understandable, therefore, that some XRP holders are panicking and are now demanding a seat at the discussion table.
The said sentiment was reiterated by Deaton in a later tweet, with the attorney claiming that he is “trying to intervene so that XRPHolders have a seat at the table in order to be heard during any discussions.”
Here, it’s worth noting that despite such speculations, the likelihood of a settlement at this time, according to many, remains remote.
XRP sales shaking confidence
While the lawsuit is bringing out the concerns of XRP holders, the attention of many in the community has also been directed to the sales conducted by the giants of Ripple like Brad Garlinghouse, David Schwartz, and Chris Larsen. Although CTO Schwartz called it “toxic nonsense” to assume the selling of digital assets as “evil or moral failing,” others believe it to be a sign of low confidence.
Similar concerns were raised several times when former Ripple CTO Jed McCaleb carried out sales of XRP until recently.
Over the past week, XRP, like the rest of the market, has been seeing major corrections. However, this did not seem to affect McCaleb’s XRP sales. As AMBCrypto had previously reported, McCaleb has sold nearly 275 million XRP since the beginning of May, a period during which the value of the digital asset collapsed by 62% from $1.69 to $0.6263.
These strong corrections have left XRP holders blown and as the digital asset tries to find stable ground, Ripple may have to note the growing discontent within the community and finally offer them a seat at the table.
XRP Forecast October 18 — 22, 2021
XRP/USD end the trading week at 1.1394 and continue to move as part of the rise and the bullish channel. Moving averages indicate a bullish trend. Prices broke through the area between the signal lines upward, which indicates pressure from buyers and a potential continuation of the cryptocurrency growth from the current levels. At the moment, we should expect an attempt to develop a correction and a test of the support area near 0.9255. Where can we expect a rebound again and a continuation of the rise of the cryptocurrency to the area above the level of 1.8055.
Cryptocurrency XRP Forecast October 18 — 22, 2021
An additional signal in favor of the growth of XRP quotes in the current trading week October 18 — 22, 2021 will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the growth option for the Ripple cryptocurrency will be a fall in prices and a breakdown of the 0.6505 area. This will indicate a breakdown of the support area and a continued fall in XRP/USD quotes with a target below the level of 0.5005. Confirmation of the growth of the cryptocurrency will be the breakdown of the resistance area and the closing of quotations above the 1.3655 area.
Cryptocurrency XRP Forecast October 18 — 22, 2021 suggests an attempt to test the support level near the 0.9255 area. Where can we expect the continued growth of quotations with a potential target at the level of 1.8055. An additional signal in favor of a rise in XRP value will be a test of the trend line on the relative strength index (RSI). Cancellation of the cryptocurrency growth option will be the breakdown of the 0.6505 area. This will indicate a continued decline with a target below 0.5005.
XRP Lawsuit: SEC repeats “privileged documents” argument like a broken record
After hitting face first in the DPP dispute, the SEC has continued to assert its “privileged documents” stance. The latest development in the XRP lawsuit saw the SEC submit a redacted version of the three additional documents requested by Ripple for in-camera review on the public docket. The commission also submitted an explanation for its privilege assertions for all those documents that the plaintiff had either redacted or withheld by logging them as “privileged”.
SEC asserts protection under DPP and irrelevance of documents
The SEC has reinstated its “privileged” stance, noting that the documents are pre-decisional and deliberative, and therefore protected by the deliberative process privilege. The plaintiff claimed that the court should not be disarming the SEC’s privilege because the additional documents along with SEC’s September 14 documents that the commission filed under Appendix A are both protected under DPP, and discovery will further discourage government employees from genuine deliberations regarding crypto regulations. Additionally, the commission asserts that the documents are also irrelevant to both, SEC’s claims, and defendants’ objections.
“The documents on Appendix A, the Additional Documents are protected by the DPP, and the compelled release of these documents would discourage meaningful deliberations among SEC staff relating to regulatory activities in the digital asset space. Moreover, like the Appendix A documents, the Additional Documents are wholly irrelevant to the SEC’s claims or the Defendants’ proposed defenses…None of these documents even comes close to addressing whether Defendants’ offerings of XRP are securities transactions. The Court should not pierce the SEC’s privilege under these circumstances.”
Earlier this month the Court granted Ripple’s September 24 appeal, seeking the addition of three documents by the SEC for in-camera review. These documents include the two documents related to the SEC’s meetings with law firms, along the email trail concerning discussions with a third party who received guidance from the SEC to analyze its digital asset under the framework set forth in Hinman’s June 14, 2018, speech.
XRP Lawsuit: SEC aims to make XRP skip the bull run with an Expert Discovery Extension Appeal
The latest update in the XRP lawsuit saw the SEC file a letter requesting the Court to extend the expert rebuttal report deadline to November 12, 2021, and the expert discovery deadline to January 14, 2022, from the former date of November 12, 2021. The plaintiff noted that the extension will allocate both parties sufficient time to prepare rebuttal reports and depose a minimum of 14 expert witnesses.
Ripple Opposes SEC extension appeal to save XRP from an isolated bear run
While consenting to the extension of the rebuttal report deadline until November 12, Ripple opposes the January 14 deposition deadline to avoid the case from stretching long enough for XRP to entirely miss the bull run. Furthermore, Ripple also intends to file an opposition to this letter motion on October 18, 2021.
The SEC offered a compromise to Ripple, preponing the expert discovery extension to December 22, but the defense has rejected that offer as well. Ripple argues that the extension would “would likely impact the briefing schedule for summary judgment motion[s].”, as post-December 10, 2021, the Thanksgiving holidays will commence the holiday season.
SEC supports extension appeal with pending motions
The SEC objects that the case is even less ready for summary judgment motions as expert discovery has commenced with an incomplete factual record. The commission noted that on September 1, 2021, Magistrate Judge Netburn granted the SEC’s motion to compel Ripple to produce certain instant messages among its employees, but Ripple has not completed its production of responsive documents and has not provided any timetable by which it will be complete. Along with the incomplete discovery of a granted motion, the plaintiff states that the parties have a total of four pending discovery motions before Magistrate Judge Netburn. The plaintiff claims that even if one motion is granted, the parties will require an additional extension to proceed with the discovery.
“If Magistrate Judge Netburn grants any of the pending motions to compel, at minimum, the parties would need additional time to review and produce the documents at issue…The SEC’s proposed extension is fair and reasonable under the circumstances and should be granted for good cause.”, stated the SEC.