Ripple Labs recently celebrated a partial victory in its ongoing legal battle against the US Securities and Exchange Commission (SEC) over the security status of XRP. However, the SEC has refused to back down and filed for an appeal, intensifying the legal battle. While there has been a lack of court activity in recent days, the spotlight has turned to Bill Hinman, the former director of the SEC’s corporation finance division, and his testimony in the case. Amicus Curiae attorney John E. Deaton provided his insights on Hinman’s testimony.
Hinman’s involvement in the case stems from a speech he made in 2018, where he stated that Bitcoin and Ethereum should not be classified as securities due to their decentralized nature. This speech laid the foundation for Ripple’s argument that XRP should also be considered a decentralized cryptocurrency and not a security.
During the legal proceedings, Hinman was questioned about his knowledge of Simpson Thacher’s involvement in the Ethereum Alliance. He claimed that he only became aware of their involvement a month or two after leaving the SEC. However, Deaton argues that if Hinman had answered differently, he would have admitted to violating 18 USC 208, a statute that deals with financial conflict of interest.
This focus on Hinman’s testimony and the potential violation of 18 USC 208 is unlikely to have a significant impact on the motion for interlocutory appeal. Deaton believes that Judge Analisa Torres is unlikely to issue a different ruling from what was previously issued. The court has given Ripple until September 1 to respond to the SEC’s motion, and the SEC is required to file a response to Ripple’s filing by September 8.
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While the legal proceedings continue, Ripple’s filing and the court’s decision on other cases involving the SEC, such as the ones against Binance and Coinbase, could have a significant impact on the sentiment of XRP investors and the overall cryptocurrency market.
As of now, XRP is trading at $0.515508. The asset has struggled to break the resistance band between $0.5750 and $0.5900 and maintain support above the $0.51 level. Analysts predict that if the court dismisses the SEC’s motion, XRP could potentially break this resistance level.
However, if the momentum remains bearish, XRP could fall further and trade within the range of $0.4920 to $0.4780. Technical indicators, such as the 14-Daily RSI and the 50-day and 200-day EMAs, suggest a bearish signal. A positive outcome from Ripple’s filing could trigger a rally from the 50-day EMA to the resistance level between $0.5750 and $0.5900, as well as the 200-day EMA.
Ultimately, the outcome of the legal battle between Ripple and the SEC will have significant implications for the future of XRP and its classification as a security. It will also set a precedent for how other cryptocurrencies may be regulated in the United States.
In conclusion, Ripple’s legal battle against the SEC has intensified with the filing of an appeal. While the focus has shifted to Bill Hinman and his testimony, it is unlikely to have a major impact on the ongoing proceedings. The court’s decision on Ripple’s filing and other cases involving the SEC will significantly influence the sentiment of XRP investors and the broader cryptocurrency market.
