The regulator continues to insist that the legal status of Bitcoin and Ether is not relevant to the Ripple case
In a letter to Magistrate Judge Sarah Netburn, Mark Sylvester, senior trial counsel at the U.S. Securities and Exchange Commission, asked the court not to compel the agency to provide additional answers to Ripple’s contention interrogatories.
The agency is accusing the defendants of trying to “trap” it into answering questions about the legal status of Bitcoin and Ether, pointing to the fact that it has never brought an enforcement action against either of the two cryptocurrencies:
There is no dispute that the SEC has never filed an enforcement action against issuers of Bitcoin or Ether contending that they engaged in securities transactions at the time of those transactions.
The SEC says that it doesn’t typically make independent determinations concerning whether certain financial instruments are securities.
Litigants typically rely on contention interrogatories to determine whether adversaries’ contentions are supported by facts.
On Aug. 31, Ripple’s lawyers filed a motion to compel the plaintiff to answer interrogatories that identify the regulator’s theory on how the Howey Test can be applied to all transactions made by the executives over the course of eight years.
In the aforementioned motion, the defendants argued that the agency had refused to provide the information sought by various interrogatories.
Particularly, it failed to identify all terms of the contract that purportedly led to an expectation of profit:
The SEC should not be permitted to play cat-and-mouse on this issue.
The agency also didn’t answer whether or not it contends that Bitcoin and Ether are securities within the meaning of Section 2 of the 1993 Securities Exchange Act since it believes that the legal status of the aforementioned cryptocurrencies to be irrelevant to the case.
On top of that, the SEC also didn’t specify whether Ripple’s efforts were necessary to push the price of XRP.
The SEC fires back
The regulator, however, claims that Ripple made similar objections to its own interrogatories.
The SEC Letter to Defendants also noted that, while Defendants accused the SEC of acting improperly by sometimes incorporating its responses to other interrogatories, Defendants had engaged in the very same practice in responding to the SEC’s interrogatories.
Furthermore, the Southern District of New York doesn’t require detailed responses to contentions litigations.
The SEC says that it did provide the defendants with the term “contracts,” claiming that it shouldn’t accept Ripple’s “incorrect reading.” In addition, it has identified “a variety” of ways in which the company’s efforts resulted in XRP price spikes.
XRP price on edge of cliff as Ripple faces imminent collapse
- XRP price falls below key Ichimoku levels on the weekly chart.
- Key oscillator divergence may hint at near-term support.
- The threat of a 34% drop, however, remains likely.
XRP price followed the rest of the cryptocurrency market lower over the weekend. The US Thanksgiving holiday gave cryptocurrency traders and investors some early Black Friday deals, but downside risks remain.
XRP price drops below weekly Ichimoku Cloud, threatening flash crash conditions
XRP price completed the most bearish weekly candlestick close within the Ichimoku system since the week of February 28th, 2020, last week.. The candlestick closed below its final Ichimoku support level, the Kijun-Sen ($0.957). XRP now has very little support structure remaining and will now rely on the Chikou Span as its final hope of support.
The saving grace for XRP bulls is where the Chikou Span is positioned. For an Ideal Bearish Ichimoku Breakout entry to occur, the Chikou Span must be below the bodies of the candlesticks and in open space. Open space is a condition where the Chikou Span won’t intercept the body of any candlesticks horizontally over the next five to ten periods. For the open space condition to be accurate, XRP price would need to close at or below $0.59.
Some bullish warning signals are flashing, however, and could trigger some covering by short-sellers. Currently, XRP price has bounced off the 38.2% Fibonacci retracement at $0.84 to return above the Kijun-Sen. Another factor contributing to the bounce is the Chikou Span moving above the body of the candlesticks for the first time since the August 13th weekly candlestick.
XRP/USDT Weekly Ichimoku Chart
There is an almost imperceptible hidden bullish divergence between the candlestick chart and the Composite Index. Hidden bullish divergence is when an oscillator creates lower lows while the price chart creates higher lows. Only valid if the prior trend was up – hidden bullish divergence is an early indicator that the prior uptrend will continue. Contributing further to some near-term support is the Relative Strength Index holding the oversold levels of 50 and 40 as support.
Bulls ultimately need XRP price to close at or above the $1.18 level to establish a clear and renewed bull market.
Ripple (XRP) Marketing Narratives No Drama Bells and Whistles
Ripple XRP Marketing Narratives are not Impressing Long-Term Holders in terms of profits.
Worry Wort Investors who have been holding XRP are like: It’s $0.9 from $1.96. what is the point of all the success story posts, partnerships, and projects. XRP price is not going higher. Are you using distraction tactic? Investors have been waiting for several years for the price to go up.
There is no doubt that Ripple is a great project and they are successful in what they do in terms of cross-border payments. Did they ever over promise that the price of XRP will go very high? Or, Are the community assuming that the company implied the price of XRP will sky rocket?
Ripple Technology is great. It is not a scam like many other projects out here. It is doing a lot of good in terms of real-time use.
It just looks like not all cryptocurrencies or tokens are about profit making. Some tokens are about facilitating use cases that are applicable real time. Perhaps XRP is one such token with no drama, bells and whistles.
The kind of services delivered by Ripple requires some stability with the token they use as a mode of exchange. So, investors anticipating high profits need to rethink and know that high profits mean high risk and high volatility. This might not be true about XRP in terms of the kind of services it facilitates for Ripple. May be the expectations of investors is not as realistic.
Some Interesting Stories about Ripple: Making an Impact with the Asian at Ripple Community: In an effort to help Ripple employees bring their most genuine selves to the job, Dushyant Acharya took on a global co-lead role for our Asian ERG. Know more by reading the exhaustive story.
Careers and Jobs at Ripple: This holiday weekend, while everyone else sleeps off their food coma watching the ‘big game’ why not browse open positions at Ripple? From engineering to finance to marketing, we’ve got a winning line up of roles.
Ripple’s Top Lawyer Says the SEC has declared war on Crypto: The key to developing an effective policy framework for crypto? Clear communication and collaboration between private and public actors. There is a breakdown of the protocol details published.
Citi CEO Fraser: ‘We’re Building the Infrastructure for Retail, Real-time Payments’: Real-time payments are gaining momentum and digital currency is positioned to play a significant role in its future.
Creator Fund: In collaboration with our agency partners, Mintable, MintNFT & VSA Partners, we’re helping creators and brand clients create and sell their NFTs. Explore to know more about the Ripple Creator Fund.
40 Million XRP Moved to Binance Exchange and Sold Immediately
Anonymous wallet moves a large number of coins to exchange while the cryptocurrency market recovers
While others decide to keep their coins in cold or hot wallets instead of exchanges, this XRP whale has moved a large volume of funds to a centralized exchange and, most likely, sold immediately.
According to transactional activity on the chain, an anonymous wallet ending in “kskkhi” has moved 40 million coins to a wallet owned by Binance centralized exchange.
Currently, the unknown wallet holds almost 13 million coins. The wallet received 40 million coins just a day before a large transaction from another unknown wallet that holds significantly more XRP.
The exchange between undisclosed whales is purely anonymous and has not been known to the public. The second wallet, which initially transacted 40 million coins to the wallet that sold it on Binance, is currently holding 156 million XRP coins.
The larger wallet might somehow be connected to another centralized exchange since it has been constantly receiving a large number of funds from it, including those 40 million coins.
The realization of coins on the Binance exchange could have led to the rapid retrace of XRP that has been moving with a 2.5% profit today. The current daily XRP volume on Binance is at 156 million coins. The transacted amount represents approximately 25% of the current daily trading volume on the exchange.
At press time, XRP is trading at $0.97 with 0.17% of daily growth that has peaked at 2.5%. Previously, Ripple faced a strong recovery by dropping below the $0.90 zone and then spiking back up to $0.96 in one day.