- XRP price rallied 17% on the weekly time frame and the altcoin sustained above support at $0.6886.
- Ripple CEO Brad Garlinghouse told Bloomberg Live that there is an opportunity to create value in XRP.
- Garlinghouse says Ripple has worked with regulators as SEC vs. Ripple lawsuit deadline approaches.
XRP price corrected after hitting its year-to-date peak of $0.7440. Despite its recent pullback, XRP price yielded nearly 17% weekly gains for holders ahead of the upcoming deadline in the SEC vs. Ripple lawsuit.
Ripple CEO Brad Garlinghouse commented on whether XRP can create value and how the altcoin compares to Bitcoin, in a recent interview with Bloomberg Live.
Also read: XRPLedger’s AMM activation could have a positive effect on Ripple, XRP
Daily digest market movers: Is XRP the next Bitcoin? Brad Garlinghouse comments on XRP value creation
- Brad Garlinghouse says that Bitcoin ETF volumes have been soaring while ahead of the BTC halving. The Ripple executive says that the broader crypto market is following Bitcoin’s lead and comments on the bullishness in the ecosystem, in a recent tweet on X.
BTC ETF volumes have been soaring, we’re due for a halving and the broader crypto market is following BTC’s lead (as has historically been the case). As someone who has experienced multiple cycles of “crypto is back” it’s imperative this bullishness go hand in hand with…
— Brad Garlinghouse (@bgarlinghouse) March 11, 2024
- In a recent interview with Bloomberg Live, Garlinghouse addressed the question whether XRP is the next Bitcoin. The executive said that if Ripple works with the system to solve the problem (value transfer) at scale, the problem measured in trillions of dollars, then there is a lot of opportunity to create value in XRP.
- Ahead of the upcoming opening brief deadline in the Securities and Exchange Commission (SEC) vs. Ripple lawsuit, Garlinghouse explains that Ripple has worked with regulators from the get-go.
- Commenting on the lawsuit, Garlinghouse was quoted as saying:
“From the get-go, Ripple has worked with regulators. And we have worked with regulated institutions like banks, where there isn’t regulatory uncertainty. And so, we have found a part of the reason why XRP has performed well is because people realize, hey wait a minute.”
- Coinbase’s opening brief in its lawsuit addressed the SEC’s authority on rule-making for crypto, this lawsuit and its outcome has a direct impact on the regulator’s allegations on Ripple.
- Coinbase CLO Paul Grewal questions the SEC’s authority on rule-making in the digital asset space, according to a series of tweets on X.
If you go back and read the SEC’s perfunctory denial, you’ll be hard pressed to find an actual reason for its inaction. This is despite the dozens of legitimate concerns we raised in our petition, including questioning the SEC’s authority over the digital asset space. 2/7
— paulgrewal.eth (@iampaulgrewal) March 11, 2024
- The SEC vs. Ripple lawsuit deadline for the regulator’s remedies-related opening brief is March 22, there is anticipation among XRP holders, as the deadline draws close.
Technical Analysis: XRP price corrects on Wednesday, eyes rally to $0.75 target
XRP price is sitting close to support at the 78.6% Fibonacci retracement level at $0.6886. The altcoin’s price is $0.6981, trading in a range between $0.6886 and $0.7440. Technical indicators suggest an upside trend, the altcoin could wipe out losses with positive momentum.
The bars on the Moving Average Convergence/Divergence (MACD) indicator and the Awesome Oscillator (AO) are flashing green, suggesting that bulls are gaining ground. The altcoin’s uptrend is intact and if bulls have their way, XRP price could make a comeback to the 2024 high of $0.7440 and target the November 2023 peak of $0.75 next.
XRP/USDT 1-day chart
In a dire case scenario, XRP price could sweep support at the key Fibonacci retracement level of 61.8% at $0.6452. A daily candlestick close below this level could result in a decline to the Fibonacci retracement of 50% at $0.6147, before the altcoin begins its recovery.
SEC vs Ripple lawsuit FAQs
It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.
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