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XRP lawsuit update: Why did the SEC accuse Ripple of wanting ‘special treatment?’

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The relentless filing of motions has meant that the legal battle between the SEC and Ripple has taken several new turns. Just recently, the SEC requested the court additional time to extend its deadlines for both fact and expert discovery by a period of 60 days.

The defendants, however, were downright against the extension and contended that their business operations would be threatened by the unforeseen delay. They further stated that the regulatory agency had not noted any “good cause” for extending the discovery schedule.

In what is the latest development, however, the agency has now filed a reply in an attempt to invalidate Ripple’s aforementioned claims.

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According to the SEC, the “undue prejudice” and “existential threat” remarks of the defendants are both “legally and factually unsupported.” While Ripple had cited two cases in support of their arguments, the SEC is now claiming that neither of them supported the denial of an extension request.

“The SEC is not aware of any decision denying a plaintiff additional time for discovery to advance that defendant’s business interests, and Ripple cites to none.”

Additionally, Ripple had also claimed that its purported ODL money transfer product would be “unfairly harmed” by the extension. Retaliating back, the agency asserted,

“The SEC’s Amended Complaint alleges and the evidence shows that Ripple earned only de minimis [minimal] fees from its ODL product before the SEC filed the case, and instead funded its operations through its unregistered offers and sales of XRP…”

The SEC also went on to contend that the sale of the aforementioned “digital asset security” exhibited “unlawful conduct” on Ripple’s part. Ripple’s financial statements, it argued, confirmed that before the filing of the case, it earned “hundreds of millions of dollars” a year from XRP sales. The overwhelming majority of the fees had “nothing to do” with ODL, the reply said.

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The blockchain firm had also pointed out that numerous digital asset trading platforms had suspended trading in XRP, thereby leaving the asset “essentially illiquid” in the U.S. 

According to the regulatory agency, however, XRP’s illiquidity claims are “unsupported” by the record. XRP is still available for purchase on dozens of digital asset trading platforms, the SEC said, claiming that the asset’s trading volume was about three times higher on 11 June than it was a year ago. Curiously, the agency was also quick to highlight that XRP’s price has risen by 4x since. 

“However, Ripple’s desire to end this litigation and return to normal business-as-usual, without regard to the requirements of the securities laws or the harm to the public resulting from violations of registration requirements, is not a valid reason to deny the SEC’s request.”

Finally, Ripple had also claimed that the SEC’s primary argument for extension was the SEC’s own self-prompted motions. The SEC retaliated by stating that most of the motions in the case were filed by the defendants. According to the aforementioned reply, the SEC has been “diligent” in serving document requests and subpoenas throughout. What’s more, the SEC blamed Ripple for attempting to “prevent” it [the SEC] from obtaining relevant discovery by denying the extension. 

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“This remarkable effort by Ripple appears to have resulted in weeks of delay in the production of third part documents.”

The SEC’s letter concluded by stating,

“What Ripple really wants is special treatment: the ability to veto a reasonable extension of the discovery schedule, notwithstanding the SEC’s diligence to further Ripple’s litigation strategy.”

Needless to say, reactions to the same were very vocal, with popular attorney Jeremy Hogan opening,

“I think looking at Roman Num. III of the SEC’s motion, it fails to be very specific about what FACTS it still needs to develop and that is a problem for it.”

If the SEC’s request gets approved, the period for fact discovery would end on 31 August and the period for expert discovery would conclude on 15 October.

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XRP

XRP Has Great Risk-Reward Ratio, With 10x Price Rise Likely: Macro Guru Raoul Pal

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Raoul Pal is saying that global payments asset XRP has a great risk-reward ratio despite a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). 

In a new interview on Savvy Finance, the CEO of Real Vision and Global Macro Investor shares why he remains bullish on the crypto asset.

“XRP is a great risk-reward. The lawsuit – we’ve seen every lawsuit, every single one has been fine. Everybody’s actually cleared up after the event anyway and these events were a while ago. Bitmex, that’s happening, we’re going to see all of these, so I think it’s going to be a slap on the wrist that it could look like a security, there’ll be no admission of guilt on either side, there’ll be a payment of a fine and then XRP is free to run.”

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The former Goldman Sachs executive also identifies factors that will help drive up the price of the coin. 

“What’s interesting about XRP is there is quite a lot of use cases. Now, I know the bunch of Bitcoin people hate it– it’s not decentralized enough, I don’t care. Are people using it? Yes, a lot more than most people realize, and what’s amazing about this setup is you can’t buy on any of the exchanges and it’s not in the Bitwise ETF.  

“The Bitwise ETF is now a billion of the Bitwise index. The top 10 index is a billion dollars, so the moment XRP is free, they have to buy a few hundred million dollars in it as everybody else can because the exchanges will have it back, so you’re setting up for a hell of a nice run if this clears up.”

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Pal says it is still worth betting on XRP despite the possibility of Ripple losing in its legal battle with regulators. 

“Worst case it doesn’t? Worst case is, let’s say, 50% downside, best case is 10x from here, so I’ll take a 50 to 1 risk-reward for the next three to six months.”

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Chainlink

XRP, Chainlink and This Crypto Project Launching Bitcoin Smart Contracts Are ‘About To Go Crazy’, Says Altcoin Daily

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Altcoin Daily host Austin Arnold is listing three altcoins that he says are “about to go crazy”.

In a new video, Austin tells his one million YouTube subscribers that the altcoins in question are Dfinity Foundation’s Internet Computer (ICP), the bridge currency XRP, and blockchain oracle network Chainlink (LINK).

Kicking off the list with Internet Computer, Austin says that the crypto project focused on becoming a decentralized global computing platform, is planning to introduce smart contract functionality to Bitcoin.

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Internet Computer smart contracts will gain access to Bitcoin liquidity and Bitcoin will gain powerful new smart contract functionality without the need for insecure and cumbersome trusted bridging services.

So this could be big – a DeFi [Decentralized Finance] ecosystem for Bitcoin is a major industry initiative. It would mean the world’s most popular cryptocurrency, Bitcoin, could be used for lending, yield farming, derivatives, liquidity pools and more.”

Turning to XRP, Austin says the developer Ripple Labs has encountered a setback in the lawsuit filed against it by the U.S. Securities and Exchange Commission (SEC).

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“…Ripple filed a motion back in August 27th requesting information about whether SEC employees had purchased and traded Bitcoin, Ethereum and XRP. The United States Magistrate Judge Sarah Netburn rejected this motion on Tuesday…

…so what this means to you as a potential XRP holder is that Ripple will have to find another way to prove to the SEC that XRP is not a security. That’s of course the SEC’s point of view. They’re the ones that are suing Ripple and the case is heating up.”

In the case of Chainlink, Austin says that the blockchain oracle network’s recent integration with decentralized cold storage aggregator Coldstack is bullish.

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“…big green flag for LINK holders. Here’s the reason Chainlink was chosen – because in their [Coldstack] words ‘Chainlink is the industry standard in blockchain oracles’.”

Austin also quotes Coldstack’s CEO Alexander Shishow showering praise on Chainlink.

“In a direct quote from Coldstack CEO… ’There really isn’t any substitute for Chainlink – if we want to provide the best data storage solutions for our users, then it makes sense to use the best oracle service provider in the industry.’”

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Cardano

Top Analyst Plots Path Ahead for Cardano and XRP, Says Three Altcoins Are Now Attractive After Dip

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Michaël van de Poppe is sharing his updated forecast for two leading altcoins, Cardano (ADA) and XRP.

In his new video, the crypto analyst says that Cardano has hit important price levels, breaching the $1.90 to $2.10 range.

“I’m assuming that Cardano is quite close to being bottomed out at this stage, through which we can expect new impulse waves to be happening.”

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Van de Poppe next looks at the token’s Bitcoin pair (ADA/BTC) and says that there is a possibility that Cardano could see new highs.

“I’m expecting that we’re going to have some slight consolidation comparable to the area that we had in April. So some slight consolidation here until we crack resistance, but if we [do], I think we’re going to be running with new all-time highs or new highs for Cardano here as well.”

The trader also identifies a crucial price level for XRP that could indicate a bullish signal for the crypto market.

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“I think that if you want to get into the markets then the chances are here that we’re finally getting bottomed out and we are ready for the next impulse wave in the market.

What is the level to crack for XRP? The area around $1.05 is the one that it has to crack through. I’m not assuming that we’re going to get it in one go, but I’m assuming that once it breaks through there, I think all coins will be breaking out left and right. But this is a good candle on XRP.”

The widely-followed analyst notes that the downturn offers a good opportunity to get into the market, naming Avalanche (AVAX), Solana (SOL), and Fantom (FTM) as the three altcoins to buy during the dip.

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“Should you be getting interested in the markets when it’s approaching support and when projects are dropping down by about like 35% to 45%? Yes, of course. 

When you get towards the support, people will ultimately become quite bearish and they are only expecting further downward momentum. That is the moment that you want to get into the markets.”

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