- The legal team behind Ripple has filed a new document on behalf of the blockchain firm’s CEO Brad Garlinghouse.
- The filing requests documents from crypto exchange Binance to challenge the SEC’s claims in the $1.3 billion lawsuit.
- Ripple argues that most of the XRP sales did not occur in the United States.
A new filing has revealed that crypto exchange Binance may have relevant documents associated with the Ripple lawsuit filed by the US Securities & Exchange Commission (SEC).
Binance has relevant documents in Ripple lawsuit
As part of the latest developments in the SEC v. Ripple lawsuit, cryptocurrency exchange Binance has been said to have documents relevant to the case.
The legal team behind Ripple CEO Brad Garlinghouse has made a filing with the Southern District of New York, seeking documents from Binance Holdings Limited, a subsidiary of the digital asset exchange based in the Cayman Islands.
According to the filing, Ripple believes that Binance has documents “relevant to the case and unobtainable through other means.” The document further asked the court to issue a letter of request for the Cayman Islands Central Authority to seek evidence from the digital currency exchange.
Ripple lawyers are challenging SEC claims that the blockchain firm’s CEO sold over 357 million XRP to investors worldwide through digital asset trading platforms.
The legal team has filed for the motion to obtain against the regulator’s claim under Section 5 of the Securities Act of 1933, which only applies to domestic sales and offers of securities, in contrast to the agency’s statement of global violation.
As a result, the documents that the Ripple lawyers requested of Binance may demonstrate evidence in support of the claim. The legal team stated that the SEC has knowledged that Garlinghouse’s XRP tokens sales were mainly made on crypto exchange platforms outside of the United States jurisdiction.
Since the filing, Ripple CEO Brad Garlinghouse’s motion to obtain international discovery has been granted, and the case continues as a settlement does not appear to be on the table.
XRP price momentum slows down
XRP price continues to consolidate after its swing high on August 1. Ripple was rejected by the 200-day Simple Moving Average (SMA) that acted as stiff resistance and has further slid down below the 50% Fibonacci retracement level at $0.719.
Consequently, XRP price is now exposed to an 8% decline, should Ripple slice below the 61.8% Fibonacci retracement level at $0.669, further tagging the next downside target of the 50-day SMA at $0.659. The trading volume of the cross-border remittance token has also diminished, which indicates that buyers are nowhere to be found.
The cross-border remittance token should discover meaningful support at this level. However, should further selling pressure materialize, Ripple could fall into the demand barrier, extending from the 78.6% Fibonacci retracement level at $0.598 to $0.659.
XRP/USDT daily chart
It appears that the upside potential for XRP price remains limited, constrained by the first level of resistance at the 38.2% Fibonacci retracement level at $0.768. The second obstacle for Ripple is the 200-day SMA at $0.783, which has trapped the token under this technical level with minimal bullish momentum for over a month.
Should XRP price manage to break above the two aforementioned resistance levels, Ripple could target the 27.2% Fibonacci retracement level at $0.815 next.
Court Orders SEC to Answer Ripple’s Interrogatories
Ripple, however, has failed to bury the SEC in paperwork, with the judge granting the agency’s motion for a protection order against “unduly burdensome” requests
Magistrate Judge Sarah Netburn has ordered the U.S. Securities and Exchange Commission to answer some of Ripple’s hotly-contested interrogatories, which are meant to determine whether or not the plaintiff’s contentions can be supported by facts.
The agency will have to specify why the company’s XRP sales are investment contracts:
The SEC’s legal theory is not an excuse to avoid responding to Defendants’ factual inquiry. Nor is it a basis to answer a different question than posed.
In addition, the SEC will have to state whether it believes that Ripple’s efforts were key to boosting the price of XRP.
However, Ripple’s interrogatory about whether or not the XRP Ledger was fully functional prior to the start of the securities offering has been denied for being too vague:
The Court agrees that this interrogatory seeks relevant information. But Defendants’ interrogatory is too vague for the reasons identified by the SEC.
Netburn has also granted the SEC’s motion for a protective order, which allows the regulator not to respond to all of Ripple’s “unreasonably burdensome” interrogatories.
The agency claimed that covering all the 29,947 requests would take 104 days without “breaks or sleep.”
Earlier this week, the court also granted the SEC’s motion to extend the expert discovery deadline to Jan. 14, 2022, despite Ripple’s protestations.
Ripple CEO Says the SEC Helped Ethereum to Surpass XRP as No.2 Crypto
- Ripple CEO aired his opinion on the crypto market and regulations.
- Brad Garlinghouse said the US SEC granted Ethereum regulatory green light.
At the DC Fintech Week virtual conference on October 21, Ripple CEO Brad Garlinghounse aired his thoughts on the state of the crypto market and regulations. Besides, he holds a grudge over the financial regulator’s approach to Ethereum.
In addition, Garlinghouse declared that the US Security and Exchange Commission (SEC) granted Ethereum regulatory green light that enabled it to surpass his firm’s XRP token.
Likewise, the Ripple boss feels that his firm has been played out. But, at the same time, Ethereum’s subsequent success is at least in part down to more favorable treatment by the US SEC. Also, Garlinghouse stated that it is affecting its market. He said,
“Within the last few years, XRP was the second most valuable digital asset. As it became clear the SEC had given a hall pass to ETH, ETH obviously has exploded, and that clarity has helped.”
To clarify, XRP was the second-largest crypto asset by market cap in late December 2017. But, currently, it has dropped to seventh place while Ethereum has kept the second spot ever since.
Furthermore, the reason why XRP dropped is the US SEC pursuing Ripple over claims that XRP is unregistered security. In fact, in January, Ripple filed a Freedom of Information Act request with the US SEC demanding to know why it didn’t consider ETH security.
As a result, later in July, a district judge allowed the firm to depose a former official who declared in 2018 that ETH was not a security.
Ripple CEO reinstates SEC bias towards ETH, claiming XRP could’ve been No.2
It is not news that the ongoing XRP lawsuit has got the better of Ripple’s XRP token. Ripple CEO, Brad Garlinghouse recently questioned the SEC’s bias towards Ethereum, claiming that XRP would’ve been at the No. 2 position instead of ETH if it weren’t for the commission’s partial crackdown. Garlinghouse spoke at the DC Fintech Week virtual conference yesterday, arguing that the U.S. Securities and Exchange Commission alleged Ripple’s XRP as unregistered security while granting Ethereum a regulatory free pass, which in turn helped ETH shoot through the roof.
“Within the last few years, XRP was the second most valuable digital asset. As it became clear the SEC had given a hall pass to ETH, ETH obviously has kind of exploded and that clarity has helped.”
XRP secured the position of the second-largest crypto asset by market capitalization during the latter half of 2017. However, the token has dropped down to seventh place while Ethereum stands strong as No. 2. Furthermore, Garlinghouse claims that the SEC’s exclusively aggressive anti-crypto stance to allegedly protect the consumers is in fact anti-investors. Referring to the XRP lawsuit, Ripple CEO emphasizes that “nearly 50,000 U.S. people who hold XRP who are trying to sue the SEC for ‘protecting them’”.
XRP Holders left with bearish and frozen funds
Earlier this week, Attorney Deaton Filed a Letter Motion on behalf of the XRP Holders (Movants) that contended SEC’s extension request, with the main argument concerning the XRP holders’ frozen funds because of the consistent postponement of the lawsuit’s final verdict. During the ongoing bull run, XRP remains considerably bear because of the regulatory crackdown on Ripple. However, the court has overlooked the community’s concern and granted the extension explaining that in lieu of pending motions, extra time will only facilitate both parties to complete pending fact discovery and thoroughly prepare for upcoming expert depositions.
“The lack of liquidity within the United States, coupled with the mass de-listings prevents XRP Holders from trading, selling, transferring, or converting their XRP. It is because of this de facto in place seizure of their property that XRP Holders took the extraordinary step to seek intervention as defendants… Any delay in the underlying action marks yet another day XRP Holders do not have access to their funds.”, wrote Deaton.