Ripple Vs SEC: Should XRP traders take the safe route now?
The Ripple v. SEC battle might be coming to an end. But what does it mean for XRP and its numerous traders? Let's learn as much as we can about it!
The whole cryptocurrency industry is anxiously awaiting the outcome of the Ripple v. SEC litigation, which is about to come to a close. This legal dispute is very significant because it has the potential to provide the USA, which now lacks a thorough framework for regulating the sector, with much-needed regulatory certainty.
In denying the Securities and Exchange Commission's (SEC) attempt to keep the Hinman documents hidden, Judge Torres issued a major decision on May 16. This suggests that the court wants the public to have access to these materials. The countdown then started, with 6 June set as the target date for the release of these hotly debated documents to the public.
Ripple Vs SEC: Is it time for XRP traders to be cautious?
The Ripple v. SEC case is about to come to a close, and the whole cryptocurrency industry is waiting with bated breath for the verdict. This legal issue is particularly important because it may bring much-needed regulatory stability to the USA, which now lacks a comprehensive framework for governing the industry.
On May 16, Judge Torres made a significant ruling by rejecting the Securities and Exchange Commission's (SEC) attempt to conceal the Hinman documents. This implies that the court favours public access to these documents. The public publication of these very contentious documents was subsequently slated for 6 June, and the countdown began.
More recently, a letter asking for an extension of one week was sent jointly by Ripple and the SEC. The new date for submitting the public versions of the summary judgement motions and any supporting documents, such as the Hinman papers, is June 13, 2023.
On the other hand, according to Sam Lyman, a former policy director, Ripple may have a chance to win if the documents are made public.
The legal team that the company engaged is one of the reasons why Ripple could prevail. A former Director of Enforcement, a former Chief of Litigation, and a former Chief of the Criminal Division are among the members of Ripple's legal team, according to John E. Deaton.
Former SEC Commissioner's Remarks
In a recent interview, Joseph Grundfest, a former SEC commissioner, offered a few remarks on the matter. He said at first that the SEC should be treated with some sympathy because it is a regulatory structure that was not created to address issues and challenges related to cryptocurrencies.
However, during the interview, Joseph said he was uncertain about the justifications for bringing legal action against Ripple Labs. He also said that he was uncertain about the circumstances surrounding the ramifications of this occurrence. He continued by asserting that he does not think that this legal dispute would significantly contribute to the development of compliant crypto in the future.
XRP traders playing it safe
Many in the crypto community think that the release of the Hinman documents will provide Ripple with enough evidence to win this lawsuit, which will benefit XRP. However, traders don't necessarily hold the same opinion. Data from Coinglass shows that traders have been feeling pretty pessimistic lately as short bets made against XRP have increased over the past few days.
The cost of XRP also decreased at this time. Its price at the time of publication was $0.453. New users aren't as keen in purchasing XRP, as seen by the network expansion of XRP. But despite significant price swings, its velocity stayed steady over the past several weeks, showing that the token was still being frequently traded.
The revelation of the Hinman documents and the resolution of the legal matter may boost the price of XRP. Additionally, Ripple's other innovations may also contribute to XRP's current improvement.
Conclusion
As you may already be aware, Ripple recently announced that it had been chosen to present a method for tokenizing real estate assets as part of Hong Kong's first e-HKD Pilot Programme.
The real-world asset tokenization market is expected to grow to be worth several trillion dollars by 2030, which has increased interest in using this method to tokenize commodities, notably real estate. With the integration of the e-HKD, tokenized real estate, and lending protocols, Ripple has created a compelling application case. Utilizing the same technology as the XRP Ledger (XRPL), this solution will run on a private and secure ledger.
Ripple has also been seen working on its CBDC platform, according to reports. More than 20 nations are actively working with Ripple to establish plans for Central Bank Digital Currencies (CBDCs). Through this partnership, Ripple has significantly enhanced its CBDC platform, guaranteeing that it meets the unique needs of many. These organisations may customise their currency strategies and develop prototypes with the new CBDC platform thanks to this improved platform.
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