A federal judge in New York has denied Ripple Labs’ motion to order the U.S. Securities and Exchange Commission (SEC) to produce records of its employees’ crypto transactions in an effort to prove that the agency did not consider XRP to be a security.
The SEC Wins One Against Ripple
According to an official transcript, Ripple filed the request on August 27. Their rationale for the request was that if it were discovered that the SEC employees had traded XRP, it would at a minimum expose the SEC’s past lack of clarity about the nature of XRP and at most prove that the SEC did not consider XRP to be a security before.
Defendants argue that individual trading decisions will, at a minimum, expose the lack of clarity regarding XRP’s status and whether the SEC believed XRP to be a security. Such evidence arguably would undermine the SEC’s allegations that the Individual Defendants acted recklessly and would bolster the Defendants’ fair notice defense. Defendants contend that they are entitled to know whether the SEC permitted its employees to sell, buy, and hold XRP “as market participants” during the relevant period.
But Judge Sarah Netburn disagrees with Ripple for several reasons.
First, she upholds the relevance of the SEC’s argument that “the preclearance decision process does not involve any determination by SEC Ethics Counsel that a trade complies with the securities laws,” i.e., the SEC Ethics Counsel had not proposed any provision expressly relevant to XRP, so the trading history of SEC employees is irrelevant for the case.
Another key argument for the denial was essentially the lack of legal justification to approve Ripple’s demands. The federal rule protects the privacy rights of SEC employees as U.S. citizens.
As to the annual certifications that Defendants seek, Congress has presumptively prohibited disclosure of such financial information through federal privacy statutes and regulations in order to maintain government employees’ privacy.
Ripple tried to use a similar argument earlier. The SEC asked for access to Ripple’s internal communications via Slack. As Cryptopotato previously reported, Ripple argued that producing such documents wouldbe a long, expensive process. This was not enought for the Court, which ended up ruling in the SEC’s favor.
Finally, the court explains that, in fact, the SEC had no trading policy regarding digital assets during the period of interest for the lawsuit, so its employees did not act in violation of the rule even if they had traded cryptocurrencies.
XRP Remains (Relatively) Unfazed
XRP did not overreact to the disappointing news. Generally speaking, the XRP market moves in pace with the developments of the Ripple-SEC situation, with rallies when Ripple scores a win and crashes when the San Francisco-based company has any setbacks (like today’s).
Currently, XRP is trading around $0.878, down about 5% in the last 24 hours and slightly recovering about 0.5% so far today.
This seems to be more of a natural reaction to the state of the markets than to Ripple’s case, in fact. Bitcoin, the SP500, and most global markets are going through a period of nervousness after the infamous Evergrande scandal exploded.
XRP Forecast November 29 — December 3, 2021
XRP/USD end the trading week at 0.9427 and continue to move within the correction and the bullish channel. Moving averages indicate a bullish trend. Prices are again testing the area between the signal lines, which indicates pressure from buyers and a potential continuation of the growth of the cryptocurrency from the current levels. At the moment, we should expect an attempt to develop a correction and a test of the support area near 0.7455. Where can we expect a rebound again and a continuation of the rise of the cryptocurrency to the area above the level of 1.4205.
XRP Forecast November 29 — December 3, 2021
An additional signal in favor of the growth of XRP quotes in the current trading week November 29 — December 3, 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 0.6855 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 0.6055. Confirmation of the growth of the cryptocurrency will be the breakdown of the resistance area and the closing of quotations above the 1.2205 area.
XRP Forecast November 29 — December 3, 2021 suggests an attempt to test the support level near the 0.7455 area. Where can we expect the continued growth of quotations with a potential target at the level of 1.4205. 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 0.6855 area. This will indicate a continued decline with a target below 0.6055.
Ripple To Deploy Climate Friendly National Digital Currency In Partnership With Palau
With the increase in the adoption of digital assets across several mainstreams, some countries are strategizing on moving with the flow.
Hence, most countries across the globe are working and experimenting on developing a national digital currency that they can link with their fiat currencies. This is the primary reason for collaboration between the Republic of Palau and Ripple’s digital payment network.
Through the partnership, Ripple will assist the Pacific Island country in developing its national digital currency. The initiation ensures that the digital currency is USD-backed and will support Palau’s payments across borders.
In addition, Ripple announced that it would produce a national stablecoin within the first half of next year through the partnership. This will stand as the first of its kind globally with government backing.
Furthermore, Ripple indicated that the national digital currency for Palau might not be a Central Bank Digital Currency (CBDC). The digital payment network explained that its support to Palau cuts across design, business, policy, and technology.
It talked about the influence of exploring a USD-backed stablecoin and its use cases on the XRP Ledger. It mentioned that such an application would give a preferable substitute to CBDCs for a nation like Palau.
On his part, President Suangel Whipps Jr. of Palau confirmed that the citizens receive increased financial access through the national digital currency.
Commitment Of Ripple To Climatic Considerations
Furthermore, Palau as an island is prone to impacts from climatic changes. Also, this is another reason for the partnership with Ripple. The network explained that XRP Ledger is carbon-neutral and conserves energy more by 120,000 times than Proof-of-Work blockchains.
Ripple’s VP of Central Bank Engagements, James Wallis, disclosed their excitement with the collaboration with Palau in handling both the financial and climatic issues. He said it offers them the opportunity of displaying their experience and technology within Palau’s unique attributes. Hence they will effect a real impact on both the economic and social aspects of the country.
The place of Ripple within environmental and climatic influences is beyond that of a newbie. This year, in February, the network announced its aim of being carbon net-zero by 2030. The move involves using the EW Zero tool in turning XRP carbon net-zero.
As an Energy Wen open source solution, EW Zero will enable developers to buy tokenized renewables that will empower them to be carbon net-neutral.
Additionally, Ripple piloted the fundraising project of about $44 million for Nelnet Renewable Energy, a fintech provider. This project was for the funding of conscious environmental campaigns within the United States.
The payment network still manages its case with the SEC concerning whether the XRP tokens in 2013 were unregistered securities. However, according to Brad Garlinghouse, the issue has progressively gone pretty well and will end in 2022.
Ripple Price Prediction: Bears Contemplate A 9% Decline As XRP Drops Below $1
Ripple price dropped below the $1.0 psychological level on November 26, unravelling a possible bearish forecast. The descending parallel channel chart pattern suggests that Ripple could see a 9% drop. To invalidate the pessimistic outlook, XRP would need to overcome the 200-day SMA resistance.
Ripple price fell below the $1.0 psychological level on November 26, paving the way for further losses. The bulls of the international remittances token are struggling to keep their heads above the water as overhead pressure mounts.
Ripple Price Could Drop To $0.8708
XRP price is trading at middle boundary of the descending parallel channel around $0.9545 as seen on the daily chart. A descending parallel channel is a significantly bearish chart pattern that suggests a continued bearish leg as long as the price of an asset remains within the confines of the falling channel.
For XRP, the descending channel chart pattern points to a 9% downswing from the current price to tag the lower boundary of the channel at $0.8708.
The down-sloping moving averages and the position of the Relative Strength Index (RSI) indicator at 36.06 close to the oversold region suggest that Ripple is firmly in the hands of the bears, accentuating this bearish outlook.
XRP/USD Daily Chart Live Chart
On the upside, the bearish thesis could be invalidated if XRP price overcomes the immediate resistance at $0.9753 embraced by the 200-day Simple Moving Average (SMA). If this happens, Ripple price may potentially unto the losses that began on November 08 by breaking out above the upper boundary of the prevailing chart pattern at $1.0513.
However, any movement further could be inhibited by stiff resistance from $1.1056 and $1.1157 where the 100- and 50-day SMAs lie respectively.
Ripple bulls would need support from the wider market to overcome these hurdles which may see the XRP price pushed higher towards the peak of the descending parallel channel at $1.3542.