Since December 2020 there has been a thick air between the US financial regulator SEC and the crypto platform Ripple (XRP). In the past few weeks, events have come thick and fast as Ripple launched an attack on the SEC. An important deadline expires tomorrow, Friday, and the SEC is under pressure to act. THE SHAREHOLDER gives the details.
Ripple has filed a lawsuit requesting the SEC to disclose employee XRP holdings. The background to this is the ongoing legal dispute as to whether Ripple has to be classified as a security or not. Should it now turn out that the employees of the SEC were privately trading with XRP, this would be a conflict of interest or even possibly insider trading.
Other inquiries, for example how exactly the SEC carried out the classification with the so-called Howey test to check whether XRP is a security or not, have so far been commented as irrelevant by the SEC. However, the Ripple management team sees it differently. This is unlikely to end the legal tug-of-war.
Much is at stake for Ripple; legal defeat could mean a billion-dollar penalty. The outcome is currently uncertain and more and more secondary theaters of war are emerging. However, investors are already speculating on a victory for Ripple: The price has risen for the third day in a row and is now targeting the resistance at $ 1.35.
Note on conflicts of interest: The author has direct positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: XRP.