- The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing.
- Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.
- One veteran trader expects XRP price to climb higher in the long-term.
The Securities and Exchange Commission’s case against Ripple is drawing to a close. The latest development in the proceedings has nearly 13 documents being pulled out of public view.
Outcome of SEC v. Ripple case may trigger a rally in XRP
The SEC has filed a motion to protect documents requested by Ripple from public viewing.
The XRP Army, proponents and supporters of XRP, have unearthed one of the 13 entries that count as internal SEC documents in the case.
A speech draft of William Hinman, former SEC director of Corporation Finance, is enclosed as an entry in an email submitted for review and comment by SEC officials.
Pseudonymous XRP proponent @digitalassetbuy believes that Hinman’s speech came from a collection of people’s opinions.
Here it is @JohnEDeaton1 The Hinman speech came from this. It looks like a whole collection of people’s personal opinions. https://t.co/3JPoJ316uw— Digital Asset Investor Researcher/Wild Speculator (@digitalassetbuy) September 16, 2021
Hinman’s speech is considered critical to the outcome of the case since he declared that Ether is not a security, in June of 2018. Back then, Hinman argued that he had warned Ripple about XRP and advised the company to halt its sales.
On the contrary, when asked about Hinman’s statement, Gary Gensler, the current SEC Chair, refused to comment.
With the ongoing investigation of the world’s second-largest cryptocurrency exchange, Coinbase, and the firm behind the sixth-largest cryptocurrency, XRP, the XRP Army asks why the SEC is picking winners and losers in the industry.
The argument dates back to Hinman’s 2018 speech and the SEC’s proceedings against Ripple since December 2020.
Charles Gasparino of Fox Business Network shared the SEC’s response to “choosing winners and losers”, on September 15.
BREAKING (1/2): @SEC_Enforcement sources tell @FoxBusiness the logic of the agency's case v @Ripple is that the company's infrastructure is STILL being built out so XRP — the token which was used to finance the thing — is considered a security. @ethereum infrastructure is— Charles Gasparino (@CGasparino) September 15, 2021
The founder of Crypto-Law.us, lawyer and XRP proponent John Deaton believes Ripple will win based on its current defense.
This is why the memo and evidence tweeted out below by @digitalassetbuy helps @Ripple’s Fair Notice Defense.
It’s an OBJECTIVE standard. Ripple could have bad intent and still win.
But don’t take my word for it. Here is Judge Netburn: 👇#xrpwins https://t.co/sTa57B2JRR pic.twitter.com/88e4IWApH0— John E Deaton (@JohnEDeaton1) September 17, 2021
With XRP’s largest public holder under investigation by the SEC, institutional investors have not made big moves in the altcoin since December 2020.
However, it is interesting to note that the number of active XRP wallet addresses has increased by over 200% in the past three months. Retail traders are adopting XRP despite recent delisting across several spot exchanges, this is bullish for XRP price in the long-term.
XRP active wallet addresses over the past three months
The legendary trader and analyst Peter Brandt shared a potentially constructive long-term chart, analyzing the XRP/USD pair.
The veteran trader Brandt considers that the altcoin’s price chart shows a head-and-shoulders pattern.
FXStreet analysts predict that the altcoin must hold support at $1.06 to avoid a 30% crash; XRP is likely to hit resistance at $1.27 before rallying further.
Ripple Forecast and XRP/USD Analysis October 21, 2021
XRP/USD are trading at 1.1307 and continue to move within the growth and bullish channel. The capitalization of the Ripple cryptocurrency at the time of the publication of the forecast is $53,450,449,348. Moving averages indicate a short-term bearish trend for Ripple. Prices broke through the area between the signal lines upward, which indicates pressure from buyers of the asset and a potential continuation of the rise in the XRP rate in the market already from current levels. At the moment, we should expect an attempt to develop a small correction of the asset and a test of the support level near the 1.0785 area. Further, an upward rebound and a continuation of the rise of the cryptocurrency to the area above the level of 1.2505.
Ripple Forecast and XRP/USD Analysis October 21, 2021
In favor of raising the XRP/USD quotes, a test of the support line on the relative strength index (RSI) will come out. The second signal in favor of the growth of asset quotes will be a rebound from the lower border of the bullish channel. Cancellation of the option of raising the cryptocurrency will be the fall and closing of quotations below the level of 0.9505. This will indicate a breakdown of the support area and a continued fall in XRP/USD to the area below the level of 0.8505. Confirmation of the growth of the digital currency rate will be the breakdown of the resistance area and the closing of prices above the level of 1.2205, which will indicate a breakdown of the upper border of the downward correction channel.
Ripple Forecast and XRP/USD Analysis October 21, 2021 imply an attempt to test the support level near the 1.0785 area. Where can we expect the cryptocurrency to continue to rise with a potential target at the level of 1.2505. An additional signal in favor of the growth of Ripple will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to raise quotes will be a fall and a breakdown of the 0.9505 area. In this case, we should expect a continuation of the decline in the rise in digital currency with a target below 0.8505.
UAE exchange expands partnership with Ripple, for cross-border payments
The Ripple-effect can be felt in various corners of the world including the United Arab Emirates. Al Ansari Exchange, the UAE-based foreign exchange and money transfer company announced the expansion of its partnership with Ripple to deliver cross-border payments.
In doing so, Al Ansari exchange will be leveraging RippleNet in conjunction with MoneyMatch, a leading money transfer technology company. RippleNet’s assistance will allow the exchange to carry same-day remittances along with support from MoneyMatch. The services will initially only offer Malaysian ringgit.
The CEO at Al Ansari exchange, Rashed A. stated,
“Adopting this technology on the cloud via our partnership with Ripple and MoneyMatch is in line with our commitment to provide our customers with more flexible, faster, safer and more innovative money transfer solutions.
Together, we are carving new benchmarks in the industry, with an end goal of redefining customer experience and taking our services to the next level internationally.”
This has been in line with the exchange’s initiatives to contribute to UAE’s fintech agenda and will also play a role in the “Projects of the 50.” Ripple’s technology will gain more prominence in the region given Al Ansari was among the largest and longest-standing exchanges, focused on expanding their network.
According to Navin Gupta, Managing Director, South Asia, and MENA, at Ripple,
“We view this partnership with MoneyMatch as a continuation of that ethos, and we’re excited to be partnering with them to improve cross-border payments in key remittance corridors with RippleNet Cloud.”
The General Manager of RippleNet, Asheesh Birla, had earlier noted that the APAC region remained Ripple’s busiest region of customer demand and transaction growth. It had earlier facilitated a corridor between India and UAE, given the high remittance volume. As UAE advances its fintech standing, Ripple has been contributing to change the face of cross-border payments.
SEC v. Ripple: More than 50,000 XRP holders and ‘friends’ want to
The SEC v. Ripple Labs lawsuit is soon to enter mid-fall. Alas, the theme of the season seems to be extensions and delays as both parties are divided over the same.
Just recently, the American regulator requested that the expert rebuttal report deadline be moved to 12 November and expert discovery be pushed to 2022.
However, another group wants to be heard. John E. Deaton, Counsel for Amici Curiae – or “friends of the court” – has now filed a letter asking U.S. District Judge Analisa Torres to consider the views of XRP holders.
A ‘friend’s’ perspective
Though Deaton is worried about “annoying” the court, his filing referenced the SEC’s call for a two-month extension. He requested,
“…please accept this letter to serve as both the application for XRP Holders to offer their perspective, as well as an offer of proof of said perspective.”
What’s more, Deaton confirmed that he will not repeat any points made by the defendants in this case. Even so, he stated,
“In opposing the SEC’s request for this delay, Ripple’s argument focuses on how the “freezing” of XRP markets within the United States impacts Ripple. The negative impact on XRP Holders is even more profound.”
So, how many investors reportedly really want to join the crypto-lawyer? Well, Deaton claimed that as of 19 October, over 50,000 XRP holders had reached out to him in order to be part of the “putative class.”
As previously reported, the San Francisco-based blockchain company consented to push the rebuttal report deadline to 12 November. However, it is against the expert discovery deadline being moved to 14 January. Ripple opposed the extension, claiming that “further delay would prejudice Ripple and the market for XRP.”
For his part, Deaton also noted that many major exchanges had de-listed XRP due to its legal troubles in the USA. Additionally, he also pointed out that XRP in retirement brokerage accounts had been “frozen.”
In essence, Deaton claimed,
“Any delay in the underlying action marks yet another day XRP Holders do not have access to their funds.”
Checking in on XRP
One source of contention in recent days has been how the SEC’s extension request would affect XRP’s performance. The SEC claimed that XRP sales are “robust” and that the asset had seen price rises even during the lawsuit. Ripple, however, claimed that despite the rise in price, XRP has been “lagging behind the market.”
At press time, XRP was trading at $1.10, well below the levels it hit a few months ago.