The SEC and Ripple Labs Inc. filed for summary judgment in the complaint to settle the matter without trial. That was first filed in December 2020 and now in 2022. Both the US Securities and Exchange Commission and Ripple have asked US District Judge Analisa Torres of the Southern District of New York to make a summary judgment, which is a decision based on the parties’ statements and evidence instead of a full trial.
Ripple Price & Tokenomics
The current XRP price is $0.372711, and the 24-hour trading volume is $2.8 billion. In the last 24 hours, XRP has dropped 4.41%. Today, the XPR/USD pair achieved a high of $0.34880 and a low of $0.34816 after opening at $0.34841. But the ongoing legal fight between the SEC and Ripple has kept the XRP price from going up even more.
CoinMarketCap currently ranks #7, with a live market cap of $18.5 billion. There are 49,826,021,773 XRP coins in circulation, with a maximum supply of 100,000,000,000 XRP coins.
Quick Recap of the Ripple Lawsuit
The SEC filed a lawsuit against Ripple, its CEO Brad Garlinghouse, and its co-founder Chris Larsen in 2020, alleging that they sold unregistered securities when they issued $1.3 billion in XRP coins. However, Ripple has denied that XRP is a security. According to the initial SEC complaint, Ripple began selling digital assets known as XRP in unregistered security offerings to investors in the US and abroad in 2013 to generate money.
Furthermore, it claimed that Ripple distributed billions of XRP in exchange for non-cash benefits such as labor and market-making services. When Bill Hinman, a former senior SEC employee, explained in a 2018 speech why he did not consider competing for cryptocurrencies like bitcoin and ether as securities, it sparked controversy. While the SEC has attempted to protect them, Ripple has collected papers and communications related to the speech.
Over the last two years, the parties have filed numerous discovery motions without ever debating whether Ripple violated the law by selling XRP. According to the SEC, several remarks by Ripple officials show that Ripple sold XRP and that XRP investors purchased the cryptocurrency with the expectation that their holdings would increase in value over time.
Judgment Phase: Ripple Lawsuit’s Summary
Ripple and the SEC filed separate summary judgment requests in the United States District Court for the Southern District of New York on September 17. They asked District Judge Analisa Torres for a decision based on the arguments presented in the supporting papers.
According to reports, District Judge Torres approved the parties’ proposed joint schedule. However, the hearing scheduled for September 19 will be critical for the upcoming proceedings. The statements will be redacted and submitted by the plaintiff and defendant. However, according to Attorney James Filan, the public cannot view the official declarations and documents.
XRP Price Pump
In his lawsuit against the SEC in the Ripple case, John Deaton chastised the commission for failing to disclose the XRP price increase that occurred in the context of negative investor sentiment. He claimed that the price of LBC rose by 11% while XRP rose by 10%. According to Deaton, the SEC has expressed concerns about all of these tokens.
XRP up 10%, LBC up 11%, DRGN up 5%
All implicated by SEC. https://t.co/11YWHxo2f0
— John E Deaton (@JohnEDeaton1) September 16, 2022
On the other hand, the legal dispute between Ripple and the SEC has progressed to the Summary Judgment stage. As a result, positive sentiment toward XRP has increased. The likelihood of a favorable verdict in the Ripple lawsuit fueled an increase in XRP. However, the overall negative sentiment in the crypto market weighed heavily, sending XRP into the red.
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