Posted on

Analyst Says XRP Price Will Reach $100, But This Needs To Happen First

Crypto analyst JackTheRippler has raised the possibility of the XRP price rising to $100 soon enough. As part of his prediction, he mentioned what needs to happen for the crypto token to attain such ambitious heights. 

How XRP Price Could Rise To $100

JackTheRippler suggested in an X(formerly Twitter) post that the XRP price hitting $100 was “inevitable” once the case between the Securities and Exchange Commission (SEC) and Ripple came to an end. Furthermore, he predicted that XRP could rise to as high as $10,000, claiming that the crypto token hitting five figures was achievable after the lawsuit.

Related Reading: Brazil Wants BTC: 7,400 Bitcoin Futures Contracts Created On First Day Of Trading

The analyst’s remarks again highlight the belief among members of the XRP community that the SEC’s lawsuit against Ripple has greatly hindered XRP’s growth. Specifically, the lawsuit is believed to be why XRP underperformed in the 2021 bull run, having made remarkable strides in the 2017 bull run (long before the lawsuit was instituted). 

Meanwhile, in his remarks, JackTheRippler alluded to XRP gaining regulatory clarity once the case between the SEC and Ripple was over. This statement caught the attention of some of his followers, who pointed out that it had gotten clarity following Judge Analisa Torres’ ruling that XRP isn’t a security. 

Interestingly, XRP has failed to mount any significant run despite gaining this clarity last year. This is one reason why some XRP holders seem to have lost faith in the crypto token, as expectations were high following Judge Torres’ ruling. However, nothing much happened as the crypto token briefly rose on the back of the ruling but steadily declined in the following weeks. 

Therefore, these holders will likely be cautious about getting their hopes high despite JackTheRippler’s optimism since XRP could still maintain its unimpressive price action even after the SEC’s lawsuit is over. 

The SEC’s Lawsuit May Not Be Ending Anytime Soon

Meanwhile, it is worth noting that the case between the SEC and Ripple could even drag on beyond this year, irrespective of the outcome of the penalties stage, as both parties are likely to appeal certain rulings. This means that XRP holders might have to wait a while to see if the crypto token hits $100 based on JackTheRippler’s prediction. 

If the case is prolonged beyond this year, XRP could miss out on achieving its true potential in this bull run if the lawsuit is indeed acting as a stumbling block to its progress. The lawsuit has, however, not stopped crypto analysts like Egrag Crypto from making bullish predictions for XRP in this bull run. He predicts the crypto token could rise to as high as $27 at this market peak. 

At the time of writing, XRP is trading at around $0.54, up over 2% in the last 24 hours, according to data from CoinMarketCap. 

XRP price chart from Tradingview.com (Ripple crypto analyst)

Posted on

Ripple Vs. SEC Update: Is The Lawsuit Finally Coming To An End With A Settlement?

The legal battle between Ripple and the Securities and Exchange Commission (SEC) is getting heated and, following recent developments, looks far from over. This is due to the disagreement between both parties on the appropriate remedy for Ripple’s violation of securities laws. 

Ripple Proposes $10 Million Fine Instead

In opposition to the SEC’s motion for remedies and entry of final judgment, Ripple has proposed that the court should not impose a civil penalty of not more than $10 million. This figure represents a far cry from the SEC’s proposed judgment. The Commission had earlier asked the court to order Ripple to pay the sum of $1,950,768,364 as a pecuniary fine for violations relating to its institutional XRP sales.

Specifically, the SEC proposed that Ripple pay a civil penalty of $876,308,712 alongside a prejudgment interest of $198,150,940 and disgorgement of $876,308,712, which represents the profits from its violation of the Securities Act. However, Ripple asked the court to deny the requests for disgorgement and pre-judgment interest and only focus on the civil penalty, which shouldn’t be more than $10 million. 

Ripple’s lawyers also laid out arguments as to why the civil penalty should not exceed $10 million. Firstly, they stated that the first tier of the statutory maximum penalties is what applies to this case “because the SEC has never alleged fraud, deceit, or manipulation and has failed in its belated attempt to show that Ripple recklessly disregarded the law.”

Therefore, Ripple argued that the Commission’s request for a civil penalty of over $876 million isn’t the appropriate remedy for the first-tier structure. They added that the company’s revenue from pre-complaint institutional sales should be the only earnings considered when deciding on a remedy, which makes a civil penalty of not more than $10 million more appropriate. 

Accounting Error From The SEC

Ripple suggested that the SEC made an error in calculating the company’s earnings while deciding on the right amount for which the crypto firm should be fined. According to the company’s lawyers, the Commission failed to “analyze or even consider any other categories of Ripple’s expenses.”

Meanwhile, they allege that the SEC didn’t offer any evidence or explanation “for why cost if revenue is the only category of Ripple’s deductible expenses.” Simply put, Ripple argues that the regulator, while calculating Ripple’s earnings, didn’t consider how much the company expended before deciding that almost $2 billion was an appropriate fine. 

Ripple’s lawyers made this argument while stating that the SEC also erred in relying on the declaration of Andrea Fox, an accountant at the agency. They claim that the SEC never disclosed Fox as a fact or expert witness and that she wasn’t deposed during the initial discovery or supplemental remedies discovery. Therefore, they moved to strike her declaration as an “untimely disclosed expert report.”

Ripple Also Opposes SEC’s Proposed Injunction

As part of its entry for final judgment, the SEC had asked the court to “permanently” restrain and enjoin Ripple from “directly or indirectly conducting an unregistered offering of Institutional Sales.” Understanding how this could affect their ODL transactions, Ripple has asked the court to deny the request for an injunction. 

The crypto firm argues that the Commission has failed to show why an injunction is warranted. Injunctions are usually granted when there is a fear of future violations. Ripple claims that the SEC has failed to show a “reasonable likelihood of future violations.” 

The crypto firm’s lawyers further revealed that Ripple has “changed the way it sells XRP and changed its contracts to avoid any future violations.” To show good faith, they submitted a declaration by Ripple’s President, Monica Long, which describes the steps the company has taken to avoid future violations. 

XRP price chart from Tradingview.com (Ripple vs. SEC)

Posted on

Ripple CEO Responds To SEC’s Shocking $2 Billion Demand

In a rather shocking development, the United States Securities and Exchange Commission (SEC) has demanded a $2 billion sanction against Ripple. Responding to the startling demands, Ripple’s Chief Executive Officer (CEO), Brad Garlinghouse has taken a firm stance against the agency’s demands, determined to expose the true nature of the SEC.

Ripple CEO Criticizes SEC’s Demands

Stuart Alderoty, the Chief Legal Officer (CLO) of Ripple recently disclosed in a post on X (formerly Twitter) that the US SEC has petitioned a Judge for $2 billion in fines and penalties against Ripple. According to the Ripple CLO, the SEC is in a relentless pursuit to “punish and intimidate Ripple,” rather than faithfully applying the law. 

Challenging the SEC’s $2 billion penalty, Garlinghouse emphasized that the agency has consistently operated beyond the bounds of law in various enforcement actions. He disclosed that Judges have also taken note of the SEC’s actions, previously admonishing the agency for its extensive abuse of power entrusted to it by Congress. 

The Ripple CEO also criticized the SEC’s penalty demand, arguing that it lacks precedent and justification, particularly given the absence of any allegations, findings of fraud or recklessness in the case. As a result, Garlinghouse has vowed to expose the SEC for its conduct, emphasizing that Ripple will vigorously respond to the SEC’s action. 

Notably, Alderoty has disclosed that the company’s legal team will be addressing the SEC’s demands in a filing scheduled for next month. Offering his perspective on the SEC, the Ripple CLO characterized the agency as one “that trades in statements that are false, mischaracterized and designed to mislead.”

SEC Actions Hurt XRP Holders The Most

In its lawsuit against Ripple, the US SEC accused the payment company of violating securities laws by selling XRP in unregistered securities offering to investors in the US. According to the agency, the company and its executives had allegedly failed to protect its investors, depriving them of adequate disclosures of XRP. 

However, members of the Ripple community argue that the SEC’s enforcement actions against Ripple have not protected investors but caused even deeper challenges and financial losses for XRP holders. 

A popular XRP enthusiast, identified as XRPCryptoWolf has asserted that it should be the SEC, not Ripple, paying billions to XRP holders. 

“The SEC asking for $2 billion in fines and penalties is ridiculous when they’re the ones who financially hurt XRP holders the most. The SEC owes XRP holders tens of billions of dollars,” he stated. 

The XRP community member disclosed that after the SEC announced its lawsuit against Ripple, approximately $15 billion was wiped out from XRP’s market capitalization, and the token was also delisted from major exchanges. As a result of the lawsuit’s significant impact on XRP’s value, millions of XRP holders experienced financial losses.

XRP price chart from Tradingview.com (Ripple SEC)

Posted on

Bitcoin Spot ETFs Approved After 14 Years- The Journey So Far

The year 2024 marks the dawn of a new era, not just for technology but for finance, as a major victory was achieved for Bitcoin Spot ETFs (Exchang-Traded Funds). It’s now the era where the past will be appreciated for its foresight and doggedness. 

When the pioneer cryptocurrency and digital currency, Bitcoin launched in January 2009, it was nothing like a real-world asset or of an ‘agreed’ digital value, but an almost neglected bag of gold as it faced enough rejection from all phases. Even with Satoshi’s Whitepaper, Bitcoin wasn’t given a cordial welcome in the world of finance.

However, for all its promise, BTC remained shrouded in an air of mystery and skepticism. It took several years for Bitcoin to cement its value in the world of technology, finance, and the digital economy, assuming a giant role amidst many other cryptocurrencies. 

However, On January 10, 2024, the SEC, in its official filing, approves all 11 Bitcoin Spot ETFs. This long-awaited green light from the US SEC marked a watershed moment, not just for Bitcoin, but for the entire cryptocurrency industry. 

The 14-year journey to this point was arduous and paved with skepticism; regulatory hurdles loomed large, with the SEC citing concerns about market manipulation and investor protection as justification for repeated rejections. Attempts like Bitcoin futures ETFs offered limited exposure, failing to capture the true essence of a spot ETF’s direct price tracking. 

Bitcoin Spot ETF Explained

The recent approval of Bitcoin spot ETFs has stirred excitement across the financial landscape. But what exactly are these instruments, and what impact will they have on the future of BTC and, more broadly, on the investment landscape?

Bitcoin “Spot” ETFs (exchange-traded funds), unlike their futures-based counterparts, don’t track the price of Bitcoin futures contracts. Instead, they take a more direct approach, holding the underlying asset – Bitcoin itself – in secure digital custodians. 

This eliminates the potential for “basis risk,” a phenomenon where futures prices deviate from the actual cash price of Bitcoin. Simply put, Spot ETFs offer a more straightforward and transparent way to gain exposure to BTC’s price movements, akin to traditional gold-backed ETFs.

Bitcoin Spot ETFs function similarly to their traditional counterparts, such as those tracking stock market indices. They pool investor capital, purchasing Bitcoin and holding it securely. Each share of the ETF represents a fractional ownership of the pooled Bitcoin, allowing investors to participate in the market without directly holding or managing the cryptocurrency themselves. This eliminates technical complexities and potential security risks, particularly for those with limited crypto experience, potentially broadening the base of Bitcoin investors. 

The Genesis Of Bitcoin ETFs (Early Days and Conceptualization – 2013-2017)

The earliest sparks of a Bitcoin ETF concept date back to 2013, when the Winklevoss twins first proposed their Gemini ETF. Winklevoss twins, Cameron and Tyler, both tech entrepreneurs with a vision in 2013, submitted the first application for a Bitcoin ETF, the Gemini ETF, sparking the decade-long journey to regulatory approval. 

This audacious proposal was outrightly rejected by the SEC during the tenure of its former chairman, Jay Clayton, who later resigned in 2020 and became a supporter of cryptocurrency. Interestingly, Clayton is now actively involved in crypto regulations when he joined the advisory board of Fireblocks, a crypto custody platform.

The following years were a crucible of innovation and uncertainty. While Bitcoin’s market capitalization surged, attracting both fervent supporters and cautious observers, the SEC remained hesitant. The regulator’s concerns about market manipulation, price volatility, and the nascent state of blockchain technology were cited as justifications for repeated rejections of subsequent ETF proposals, including Grayscale’s attempt to convert its Bitcoin Investment Trust into a spot ETF.

Yet, amidst the rejections, there were flickers of progress. Technological advancements improved blockchain security and custody solutions, addressing initial concerns about vulnerability and potential wash trading. The global adoption of Bitcoin, particularly in Canada with its approval of Spot ETFs in 2021, served as a compelling case study for increased accessibility and market stability.

This period also saw the SEC’s stance slowly evolve. The appointment of Gary Gensler as SEC Chair in 2021 brought a newfound openness to dialogue and exploration of potential regulatory frameworks for cryptocurrencies. The approval of the first US-listed futures-based bitcoin ETF in October 2021, despite its limitations, offered a glimpse of what could be.

The Turning Point: A Decade Of Persistence Pays Off (2018-2023)

While the 2017-2018 crypto boom and subsequent crash sent shockwaves through the industry, it also served as a crucible, forging resilience and fueling a renewed focus on compliance and innovation. Industry figures like Grayscale, undeterred by previous rejections, continued to refine their proposals, incorporating crucial safeguards and addressing regulatory concerns.

This relentless pursuit of approval finally yielded results in 2023. In May, Cathie Wood’s ARK Investments filed for a spot bitcoin ETF, setting a definitive deadline for the SEC’s decision. 

Then, in June, BlackRock’s entry into the arena with its own Spot Bitcoin ETF application sent ripples of excitement through the financial world. This move by a traditional financial giant signalled a crucial shift in sentiment, demonstrating growing institutional confidence in BTC’s potential.

The months that followed were a whirlwind of activity. A flurry of applications from firms like Fidelity and Invesco poured in, fueled by the momentum of BlackRock’s move and the prospect of imminent approval. In August, a pivotal legal victory for Grayscale in the D.C. Circuit Court further strengthened the case for spot ETFs, forcing the SEC to re-examine its previous rejections.

Finally, the SEC, in a historic decision, greenlighted 11 spot bitcoin ETF proposals, including those from BlackRock, Fidelity, and VanEck. This moment marked the culmination of a decade-long struggle, signifying the mainstream acceptance of investor participation in the cryptocurrency space.

Ripples Across The Crypto Landscape: Implications Of Bitcoin Spot ETFs (2024)

The arrival of spot ETFs has cast a wide net, sending ripples across various spheres of the financial world. There are a lot of potentials and challenges presented by spot ETFs, vital impact on market stability, institutional adoption, and regulatory oversight. There are positive predictions that the Bitcoin market cap could rise above $1 Trillion after the launch of Bitcoin Spot ETFs.

Let’s contemplate the broader significance of this pivotal moment, what it means for the future of finance, and its relationship between technology and traditional financial systems here.

Investor Crossroads

For retail investors, Spot ETFs offer a convenient and familiar way to participate in the Bitcoin market without directly holding the cryptocurrency. This opens the door to broader adoption and increased liquidity, potentially leading to smoother price discovery and reduced volatility. The influential American magazine, Forbes predicted the BTC price will trade as high as $80,000 as a result of Bitcoin Spot ETFs’ approval. 

The year 2024 is also shaping up to be a good one, if not one of the best seasons for cryptocurrency, especially Bitcoin, as it’s the season for Bitcoin halving, which will have another mega impact on the crypto industry. 

However, the inherent risks of Bitcoin, including price fluctuations and potential exposure to fraud, must not be underplayed. Investors should approach spot ETFs with cautious optimism, ensuring a proper understanding of the technology, market dynamics, and associated risks before venturing in.

Institutional Embrace Bitcoin

The arrival of spot ETFs marks a significant step towards institutional acceptance of Bitcoin. The involvement of established financial institutions like BlackRock and Fidelity lends credibility to the cryptocurrency and paves the way for further integration with traditional financial products and services.

Concerns remain about the impact of institutional involvement on market manipulation and potential conflicts of interest. However, regulatory oversight and robust compliance frameworks will be crucial in ensuring a fair and transparent market for all participants.

Market Redefined

Spot ETFs could potentially lead to greater market stability by introducing institutional investors and their risk management expertise. This could mitigate some of the inherent volatility of the cryptocurrency market, attracting a wider range of investors and fostering sustainable growth.

The SEC’s approval represents a cautious acceptance, not a blank check. Further regulatory clarity and potential adaptation of existing frameworks might be required to effectively address the unique challenges posed by the integration of cryptocurrencies into mainstream financial systems.

Beyond Bitcoin

Spot ETFs could act as a gateway for investors to explore the broader crypto landscape. Their familiarity and ease of access might encourage exploration of other promising blockchain-based projects, accelerating the overall growth and development of the cryptocurrency ecosystem.

The success of spot ETFs will hinge on the continued evolution of blockchain technology and associated infrastructure. Scalability, security, and user experience will remain key areas of focus for ensuring the smooth functioning and widespread adoption of crypto-based financial products.

The 11 Spot Bitcoin ETFs products (with their ticker symbols) approved  on January 10, 2024, are:

  • Blackrock’s iShares Bitcoin Trust (IBIT)
  • ARK 21Shares Bitcoin ETF (ARKB)
  • WisdomTree Bitcoin Fund (BTCW)
  • Invesco Galaxy Bitcoin ETF (BTCO)
  • Bitwise Bitcoin ETF (BITB)
  • VanEck Bitcoin Trust (HODL)
  • Franklin Bitcoin ETF (EZBC)
  • Fidelity Wise Origin Bitcoin Trust (FBTC)
  • Valkyrie Bitcoin Fund (BRRR)
  • Grayscale Bitcoin Trust (GBTC)
  • Hashdex Bitcoin ETF (DEFI)

Conclusion

The approval of Bitcoin spot ETFs is a watershed moment, not just for the cryptocurrency itself, but for the entire financial landscape. It marks a new chapter in the saga of Bitcoin, one where its disruptive potential can be harnessed within the framework of established financial systems.

Also, this path forward is paved with both opportunities and challenges. Navigating regulations and addressing investor risk concerns are important to ensure seamless integration with traditional financial systems and regulatory bodies, which will be crucial in determining the ultimate success of this technological leap.

Final Thoughts

The approval of Bitcoin spot ETFs is not merely a regulatory green light; it’s a resounding declaration of Bitcoin’s arrival on the main stage of finance.

Related Reading: Celestia Network: How To Stake TIA And Position For 5-Figure Airdrops

However, the journey is far from over. This approval is a milestone, not a destination. As we stand at this turning point, it’s important to remember the spirit of defiance that birthed BTC. It was born from a desire for autonomy, for freedom from centralised control, and for a more equitable financial system. 

While ETFs offer a bridge between this decentralized world and the established financial order, it’s crucial not to lose sight of these core principles.

BTC price chart from Tradingview.com (Spot Bitcoin ETFs)

Posted on

Bitcoin Spot ETF: SEC Mishap Triggers $220 Million In Crypto Liquidations

On Tuesday, the crypto market was taken by storm when a tweet emerged from the official X (formerly Twitter) account of the United States Securities and Exchange Commission (SEC) saying all Spot Bitcoin ETF applications had been approved. This had been initially followed by a surge in price but this was short-lived as the price would crash shortly after. The reason for this was because Gary Gensler, chairman of the Commission, revealed that the tweet was fake and the regulator’s social media account had been compromised.

SEC Hack Triggers $220 Million In Liquidations

In the wake of the wild Bitcoin price fluctuations that were triggered by the SEC’s hack, a large number of crypto traders found themselves with massive losses on their hands. According to data from CoinGlass, over $220 million have been liquidated in the last 24 hours, leading to the second-largest liquidation event so far in 2024.

The website also notes that over 70,000 traders were victims of this liquidation event as well. Also, given that the price of Bitcoin and other assets in the crypto market had seen price fluctuations in both directions, both long and short traders were affected.

Crypto liquidations Bitcoin

However, given that the crash to the downside has persisted for longer, long traders have come out as the group with the most liquidations during this time. Out of the more than $220 million in liquidations recorded, long trades made up 60.47% with $133.5 million, while the volume of short liquidations came out to $87.29 million for the same time period.

Bitcoin saw the largest single liquidation order during this time as well which took place on the ByBit exchange. A single trade worth $6 million was liquidated across the BTCUSD trading pair, with total liquidations on the crypto exchange coming out to $36.66 million. This falls behind market leader Binance with $83.88 million and OKX with $73.97 million.

Bitcoin price chart from Tradingview.com

Spot Bitcoin ETF Is A Sell The News Event?

The debate of whether the Spot Bitcoin ETF approval has already been priced in and if an announcement will lead to a decline in price has been waxing stronger over the last few weeks. Experts have chimed in to give their thoughts on what will follow an approval.

Crypto analyst Andrew Kang believes that approval would lead to a scramble among applicants to grab as much as possible from the $10 billion to $20 billion expected to come from fees. As such, they will all be at the forefront of marketing to push their ETFs.

On the flip side, renowned economist, Peter Schiff, believes that a spot ETF would actually not be good for the asset. Apparently, the advent of a spot Bitcoin ETF would mean that there is no longer any good news to trigger a price rally. As such, it would turn into a ‘sell the news’ event.

However, if the performance from Tuesday is anything to go by, it could mean that the ETF is already priced in given that there was a decline in price, even before the SEC dismissed the tweet from the hacked account.

Posted on

XRP News: Ripple CEO Teases Major Announcements At Swell Event

Ripple CEO Brad Garlinghouse has expressed his anticipation for the upcoming DC Fintech week, dropping major hints and teasers about significant announcements and heated discussions slated for the event. 

Ripple Swell Event Sparks Community Interest

Chief Executive Officer of Ripple, Brad Garlinghouse has teased the X (formerly Twitter) community with hints of discussions and ideas about the upcoming Ripple Swell 2023 event scheduled for November 8th and 9th in Dubai. 

Garlinghouse stated that he was always excited about the DC Fintech Week which occurred every year. He emphasized the importance of the event in bringing together different people with similar interests in one room interacting and sharing their different ideas and perspectives on substantial topics and issues in the finance and blockchain industry. 

In his post, Garlinghouse dropped a cryptic message, likening the Ripple Swell event to a “proverbial cage match.”

“Every year I look forward to DCFintechWeek — everyone from the public to private participants in one room, discussing (and sometimes debating) the substantive issues with no holds barred. wondering…a proverbial cage match?!” Garlinghouse stated. 

Some of the headlining speakers excluding Garlinghouse appearing at the DC Fintech Week include United States Under Secretary of the Treasury for Domestic Finance, Nellie Liang, CEO of Grayscale Investments, Michael Sonnenshein, Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, Vice Chair of Supervision at the Federal Reserve, Michael Barr, and others.

As the Ripple Swell event approaches, many crypto enthusiasts are looking forward to witnessing what could be a defining moment in the Ripple ecosystem as the event may provide more insight into Ripple’s future developments and present challenges.

Ripple price chart from Tradingview.com (XRP News)

Garlinghouse To Share Stage With Gensler At Swell Event

Following the conclusion of one of the most heated high-stakes legal battles in the crypto space, Garlinghouse and SEC Chair Gary Gensler are set to share a stage in the DC Fintech Week, discussing and possibly debating on various topics in the fintech and blockchain space. 

The legal battle between Gensler and Ripple’s top Executives Chris Larsen and Garlinghouse has been one of the most closely watched conflicts in the crypto space. The SEC sued both executives, accusing them of violating US securities laws by supporting the sales of XRP tokens in unregistered security offerings to investors. 

The regulator eventually dropped all charges and claims against Larsen and Garlinghouse earlier in October, earning Ripple a partial win against the agency. 

Many XRP community members have rallied behind Garlinghouse’s label of the Ripple Swell event as a “proverbial cage match.” This sentiment is particularly strong when considering participants like Gensler and Garlinghouse who have a history of legal disagreements and Grayscale and US SEC who are currently in a legal dispute concerning the approval of Spot Bitcoin ETFs. 

Posted on

Legal Expert Explains Why Ripple Will Always Back XRP

A pro-XRP lawyer known for advocating for the cryptocurrency has outlined reasons why he believes Ripple would not abandon the XRP token. 

Lawyer Proclaims That Ripple Is Committed To XRP

Pro-XRP lawyer and Managing Partner of the Deaton Firm, John E. Deaton has taken to X (formerly Twitter) to assuage concerns raised about Ripple’s commitment and plans for the XRP token. 

Following the recent announcement of XRP’s expansion into Dubai after gaining approval from the Dubai Financial Services Authority (DFSA), Deaton boldly stated in his post that Ripple was not planning to ditch the XRP token and would not be for years. He said that the crypto payments network had a strong financial responsibility to the token, having invested billions in XRP. 

“As I’ve said for more than 3 years, Ripple is not going to abandon XRP. It has a fiduciary duty not to,” Deaton stated. 

Deaton highlighted Ripple’s financial journey revolving around the XRP token. He stated that in its Series A funding in 2015, Ripple was valued at $128 million. In Series B, the crypto payments network’s value rose again in the following year to $410 million and by 2020, Ripple had attained a value of $10 billion in its Series C valuation. 

Deaton also mentioned Ripple’s Series C buyback valuation last year, which saw the crypto network purchasing its Series C shares at a 50% higher price. 

According to Deaton, Ripple’s growing value and large-scale investments regarding XRP are proof enough that the crypto network would continue its support for XRP.

The pro-XRP lawyer disclosed that Ripple owned $48 billion to $50 billion worth of XRP, which makes it inconceivable for the crypto network to abandon XRP. He also stated that Ripple has more to gain than lose, especially if the XRP token price surges to $2. 

“Ripple’s pre-IPO shares clearly trade at a valuation significantly less than $15B. Owning 48B-50B XRP makes it insane to abandon XRP. If #XRP reaches $2, Ripple has an asset valued at $100B,” Deaton stated. 

Ripple XRP price chart from Tradingview.com

XRP Enthusiast Question Price Standstill After Major Milestones

While many XRP community members have commemorated the recent successes in the XRP ecosystem, an XRP enthusiast has chosen to voice out concerns about the lingering question of why the price of XRP has not been affected by its new achievements. 

XRP Cryptowolf took to X on Thursday to publish XRP’s newest development of partnering with the National Bank of Georgia (NBG) and why the token has not shown any significant price surges following the announcement. 

“Anyone else wondering why $XRP didn’t skyrocket to the news of Ripple partnering with a central bank?” XRP Cryptowolf stated. 

Additionally, following John Deaton’s statement that Ripple would not abandon the XRP token, an XRP community member disclosed that the XRP token had shown only a slight price change when a larger surge was expected.

“And yet here we are up 3 pennies haha any other coin would have jumped $15 bucks in a day with this kind of news,” an XRP community member stated.

While the present price of XRP has displayed a slower price growth than its past, many crypto enthusiasts believe that the cryptocurrency’s ongoing legal battle with the United States Securities and Exchange Commission (SEC) has been the primary source of its growth stunt. 

In response to XRP Cryptowolf’s question about the slack in the price of XRP, a community member stated that “for XRP to truly be free and demonstrate its potential, it will only happen after it clears all the SEC lawsuits.”

Posted on

SEC Demands $700 Million Settlement From Ripple, Pro-XRP Lawyer Reveals Next Steps

The US Securities and Exchange Securities Commission (SEC) and Ripple Labs are expected to proceed to finalize a settlement following the official dismissal of the former’s claims against Ripple’s CEO Brad Garlinghouse and its co-founder Chris Larsen. In line with that, pro-XRP legal expert John Deaton has revealed how the settlement will play out. 

A Settlement Isn’t Going To Be Straightforward

In a post shared on his X (formerly Twitter) platform, Deaton mentioned that he doesn’t believe “there has been a single serious conversation regarding settlement” between the SEC and Ripple alongside its executives. He said that the Commission is “pissed and embarrassed and wants $770M” as a fine for Ripple’s violation of securities laws.

He further noted that the penalty phase isn’t as straightforward as some may think, as it is “like a second case” but one that requires more depositions, interrogatories, requests for the production of documents, emails, bank statements, contracts, and ODL transactions. 

The process is also made more difficult as while the SEC is insistent on a $770 million fine, Ripple wants to “drastically reduce” the figure, as Deaton stated. To achieve this, Ripple will be looking to exclude the ODL transactions, which the SEC may claim are under institutional sales that violated securities laws. 

Deaton also alluded to the SEC’s case against the decentralized content-sharing platform LBRY, which took “eight months of additional litigation” before the Judge ordered that the platform pay a fine of $111,614 to the Commission. That case was also not straightforward as both parties had to file multiple briefs again, and depositions were taken. 

How The SEC’s Case Against Ripple Could Play Out

As to when a final judgment could come from Judge Analisa Torres, Deaton doesn’t foresee one until late summer “at the earliest.” With that in mind, he mentioned that it could take a full year before the SEC (or even Ripple) gets the chance to file an appeal in this case. 

The lawyer once again mentioned the role that Coinbase’s Motion To Dismiss (MTD) could play in this case and a potential settlement. He said that the SEC “will be forced to pivot its anti-crypto agenda and then work out a possible settlement with Ripple” if Judge Failla grants the motion. 

However, a settlement is unlikely if the crypto exchange were to lose its MTD. Coinbase is asking the judge to dismiss the SEC’s case against it, arguing that the Commission doesn’t have jurisdiction over its activities. Hearing of Coinbase’s oral argument is slated for January 17, 2024, with a ruling likely to come within 60 to 120 days after. 

XRP price chart from Tradingview.com (Ripple SEC pro-XRP lawyer)

Posted on

Pro-XRP Legal Expert Shares Expectations If SEC Wins Appeal Against Ripple

Pro-XRP legal expert Fred Rispoli has shared some expectations following Judge Analisa Torres’ order, where she officially dismissed the US Securities and Exchange Commission’s (SEC) claims against Ripple’s executives Brad Garlinghouse and Chris Larsen. 

SEC Can Still Bring Claims Against Ripple’s Executives

In a post shared on his X (formerly Twitter) platform, Rispoli noted that the SEC could still file another lawsuit against Garlinghouse and Larsen if they were to appeal Judge Torres’ ruling on the programmatic sales and other distributions and get a judgment in their favor. 

His assumption is based on the fact that the Judge’s latest order showed that the SEC only dismissed the claims against them with respect to the institutional sales, as the Commission had alleged that both Garlinghouse and Larsen aided and abetted Ripple Labs in violating securities laws with respect to the crypto company’s offers and sales of XRP.

However, he stated that any action would only be restricted to the programmatic sales and other distributions since the dismissal with respect to the institutional sales was with prejudice, meaning a claim cannot be brought again regarding that particular matter. 

In July, Judge Torres also ruled that the institutional sales were investment contracts, which amounted to them being securities. In line with this, the SEC and Ripple will move to settle on the latter’s violation of securities laws, with the firm expected to pay a particular amount as a fine for its violation of the act. 

XRP price chart from Tradingview.com (Ripple SEC)

Will The SEC Appeal Judge’s XRP Decision?

As to whether the SEC will appeal Judge Torres’ ruling on the programmatic sales and other distributions, Rispoli seemed to suggest that that was unlikely as the SEC was more focused on crunching the numbers (probably the monies Ripple will pay as fine) and “wrap this one up for good.”

In a subsequent post, he also mentioned that there was the possibility that they received assurances from the SEC to not file an appeal as one would expect that Garlinghouse and Larsen’s “high-powered attorneys” would have asked that the SEC dismissed all the claims, including the ones relating to the programmatic sales and other distributions. 

Interestingly, Rispoli had once predicted the likely outcome of this case as he had stated that the SEC was unlikely to drag Ripple’s executives through a trial and that they had only brought forward the claims against them in order to force Ripple into a “weak settlement position.”

The SEC is also unlikely to appeal, going by pro-XRP legal expert John Deaton’s comments when he suggested that the ETH Gate saga may have forced the SEC into what Ripple’s Chief Legal Officer Stuart Alderoty has described as a “surrender.”

Posted on

Bitcoin Spot ETF Approval: Why Price Could Be Set For 300% Surge

Bitcoin’s (BTC) price could be set to experience a 300% surge if a Spot Bitcoin ETF is finally approved by the United States Securities and Exchange Commission (SEC).

BTC Could Surge 300% When A Spot ETF Is Approved

The predictions of Bitcoin experiencing a 300% surge in its price from analysts can be traced back to the growth of Gold over the years after a Spot Gold ETF (SPDR Gold Shares) was approved back in November 2004, and listed on the New York Stock Exchange (NYSE).

The price of Gold had experienced an eight-year consecutive bull run following its first spot gold ETF. Before the listing, the price of Gold as of November 2004, was around $430/oz, and 3 years later, the numbers had doubled.

Fast-forward to the end of 2011, the price of gold was already trading at $1,800/oz indicating a 300% surge in price. Currently, the price of gold is closely gaining on its highest peak price of $1,977/oz, bolstered by geopolitical tensions in the Middle East. 

Gold moves slowly and steadily, and it is significantly less volatile than Bitcoin, but analysts anticipate the price of Bitcoin is likely to reach $120,000 in the next couple of years if the digital asset manages to reiterate the movement of Gold since its spot gold ETF approval. If the Bitcoin price were to follow this same pattern, then it could hit $100,000.

Recently, Bitcoin has achieved its highest price peak of $35,000 since May 2022. The recent increase in price can be traced back to the propaganda and excitement encompassing a spot Bitcoin ETF approval. However, the digital asset is still 50% down from its all-time high in 2021.

Last week, Bitcoin experienced a whirlwind rise of over 10% within minutes after a false report was released by Cointelegraph that a spot Bitcoin ETF had been approved by the SEC. However, the digital asset’s price later fell almost immediately after the report was proven to be false by Blackrock’s Chief Executive Officer Larry Fink.

Its significant market movement this week has prompted analysts to enter “price prediction mode.” The breakout was anticipated by cryptocurrency expert Mags for the end of the year. In addition, a decline below $30,000 is anticipated within the following few months.

Analysts believe that this will be the last area of accumulation before a significant breakout that would see the asset rise up to $50,000 prior to the halving. 

Bitcoin price chart from Tradingview.com (Spot Bitcoin ETF Gold ETF)

Bitcoin Spot ETF Boasts Higher Chance Of Approval

Recently, analysts have predicted a spot Bitcoin ETF to be approved by January 2024, due to the recent developments following the approval of a Spot Bitcoin ETF by the SEC.

Bloomberg crypto analyst James Seyffart shared his team’s prediction of a spot Bitcoin ETF approval on his official X (former Twitter) handle. The team believes that there is a 90% chance of approval of a spot Bitcoin ETF by January 10, 2024.

The team’s prediction came amidst ARK 21Shares Bitcoin ETF filling that had been updated with 5 new pages. The move suggested a “constructive conversation” with the SEC, an indication that an investment fund is likely to be approved soon. 

Posted on

Ripple Vs. SEC: Crypto CEO Predicts SEC Will Drop Charges Against Executives

The civil trial of the US Securities and Exchange Commission’s (SEC) case against Ripple and its top executives, Brad Garlinghouse and Chris Larsen, is set to commence on April 23, 2024. However, the Founder of Dizer Capital, Yasin Mobarak, believes that the SEC will withdraw its charges against Garlinghouse and Larsen before then.

Why The SEC Will Drop Charges Against Ripple Founders

In a tweet shared on his X (formerly Twitter) platform, Mobarak stated that the reason for his prediction is that it is not in the SEC’s interest to have “a trial where their corruption can be exposed.” He further stated that the Commission’s “agenda” is bigger than these two executives.

Garlinghouse and Larsen were joined as co-defendants when the SEC filed a lawsuit against Ripple in December 2020. The Commission alleged that the executives structured and promoted the XRP sales to finance the company’s business. Additionally, it accused both individuals of effecting “personal unregistered sales of XRP totaling approximately $600 million.”

Mobarak shares similar sentiments with pro-XRP legal expert Fred Rispoli, who stated that the SEC is unlikely to pursue a trial against them and outlined reasons for his assertion. One of the reasons he gave was that the SEC would not want a situation where its credibility is questioned, which he believes could happen if someone like the former SEC Director Bill Hinman was called to testify. 

The SEC filing a motion for an interlocutory appeal was considered by many as a means to prolong the trial unnecessarily, which Judge Analisa Torres had reasoned in her order. Following the denial of this appeal, Mobarak believes that the SEC will now move to end this case quickly so it can appeal to the Court of Appeals and “continue to sustain this cloud of uncertainty on the whole industry.”

XRP price chart from Tradingview.com (Ripple vs. SEC)

SEC Needs An Incentive To Do So

In response to Mobarak’s tweet, another X user mentioned that it would be surprising if the SEC decided to drop the charges against Ripple’s executives “without some incentive from Ripple given to them.” Such an incentive would likely relate to the crypto firm agreeing to a form of settlement. 

This is something that Rispoli had suggested when he said that the SEC didn’t intend to maintain a suit against Garlinghouse and Larsen but simply wanted to pressure the company into a “weak settlement.” 

However, it is unlikely that Ripple is willing to reach any form of settlement with the Commission as Ripple’s President Monica Lang asserted that her company intends to see the case “all the way through.” 

Moreso, there is no reason why Ripple should be willing to settle, considering that they already scored two major victories against the SEC and seem to have the upper hand now. 

Ripple and its executives will also have it at the back of their mind that the crypto community is looking to this case for clarity, as any judgment will likely set a precedent for how the crypto industry should be regulated.

Posted on

Pro-XRP Lawyer Reveals The Impact Of SEC’s Lawsuit Against Ripple

A pro-XRP lawyer has highlighted more casualties and negative impacts the regulatory authority has inflicted on XRP and its investors as well as individuals and businesses associated with the cryptocurrency. 

So while Ripple has stated it has lost over $200 million in its fight against the US SEC, it seems that is not the only loss that has been incurred in the drawn-out battle. 

SEC Allegedly Damaged 75K XRP Followers

John E. Deaton, a pro-XRP lawyer has taken to X (formerly Twitter) to publicly admonish the United States Securities and Exchange Commission (SEC) for its series of legal actions and enforcements against XRP, the native token of Ripple Labs. 

Deaton has been a strong advocate for XRP since its fight against the US SEC began in 2020, and the cryptocurrency enthusiast and lawyer has actively participated in the community, airing out his views in defense of the cryptocurrency and its value as a global payment asset. 

In a recent post, Deaton stated that the US SEC has negatively affected thousands of XRP investors and users and these people have been protesting against the SEC’s actions toward the ecosystem for three years.

“The SEC harmed a lot of innocent people in the process. 75K investors, users, developers, and small businesses have been screaming the above for 3 years,” Deaton stated. 

According to a civil filing, the SEC has destroyed more than $15 billion worth of assets owned by innocent holders of XRP who had acquired the token on secondary marketplaces.

Ripple And SEC Legal Battle Developments

RealClearPolicy (RCPC), an American policy website, recently published an article titled “The SEC is not King” on Thursday, September 30. 

In an X repost, Deaton acknowledged the article which highlighted significant aspects of the Ripple and SEC legal case from when the regulatory body filed a lawsuit against the crypto firm earlier in 2020, alleging that Ripple was selling unregistered security offerings. 

Ripple had aggressively defended itself against the SEC and achieved a partial victory after Judge Analisa Torres ruled in favor of Ripple and rejected the SEC’s allegations that sales of XRP tokens on exchanges are security sales. 

In a possible attempt to salvage its reputation and also gain the upper hand against XRP, the SEC filed an interlocutory appeal to reevaluate the Judge’s ruling and its case against the token. In light of this, Deaton published a blog post titled “The Irony of Interlocutory Appeal” last week, castigating the SEC’s appeal scheme to potentially delay the litigation.

The US SEC has also been struck by a blow that may put a dent in its case with XRP. The defense team of Ripple recently exposed a pile of internal SEC documents and secret positions about the token which could significantly undermine the SEC’s argument that XRP should be treated as a security. 

This recent development has thrown a curveball in the ongoing legal battle between the US SEC and XRP, raising questions about the SEC’s intentions for the crypto industry and its method of handling cryptocurrencies.

Ripple XRP price chart from Tradingview.com (Pro-XRP lawyer SEC)

Posted on

What The SEC’s Latest Announcement Means For The Crypto Industry

A recent announcement by the US Securities and Exchange Commission (SEC) suggests that the crypto industry may be in for more pain as it continues to endure the far-reaching consequences that the Commission’s enforcement actions have had on it. 

More Pain Incoming For Crypto?

During the Securities Enforcement Forum Central 2023, David Hirsch stated that his office plans to bring action against other crypto companies that were breaking the law. Hirsch heads the agency’s unit (Crypto Assets and Cyber Unit) that handles crypto enforcement, including the lawsuits against the biggest crypto exchanges in the world, Binance and Coinbase, and another against Ripple.

These actions are already negatively impacting these companies and, by extension, the crypto industry. As such, any further action could dampen the mood in the crypto market further. For instance, Binance US, the American arm of Binance, has seen a significant drop in its trading volumes since it began to face regulatory scrutiny. 

In June, the SEC sued Binance US for a range of infractions, including misrepresentation of trading controls and oversight on the platform. This forced the company to suspend trading for more than 100 token pairs, causing a significant drop in trading activity and investor confidence.

Also, despite securing a major victory against the SEC, Ripple’s XRP has lost most of its gains that resulted from the judgment. The XRP price has remained tepid overall, and one of the reasons for this could be that the Commission’s regulatory stance on Ripple has cast doubts in the minds of potential investors, especially with the SEC contesting Judge Analisa Torres’ ruling.  

The SEC’s continued clampdown on companies in the industry evidently influences how outsiders interact with stakeholders in the industry as they may be looking to avoid the SEC’s wrath. Ripple’s CTO, David Schwartz, also recently revealed how the SEC’s lawsuit made the company lose a deal with a stablecoin issuer. 

Meanwhile, others in the industry may be forced to leave the market or shut down certain parts of their operations, as in the case of crypto exchange Bittrex, which had to shut down its US operations earlier this year.

DeFi Not Exempted From SEC’s Wrath

So far, the SEC has been known to have largely gone after crypto projects that are more centralized. However, Hirsch stated that Decentralized Finance (DeFi) projects, which could be a direct reference to decentralized exchanges (DEXs), would not be exempted from his unit’s enforcement actions as the “label of DeFi” will not deter them from conducting investigations and doing their job. 

He, however, admitted that the Commission might not have enough resources to go after all these projects as they are already burdened with several lawsuits. This is in line with pro-XRP legal expert Fred Rispoli’s reasoning that the Commission may be looking to avoid any further legal battle as they do not have enough manpower to handle any additional lawsuit. 

Crypto total market cap chart from Tradingview.com (SEC)

Posted on

This Latest Move Suggests SEC Lawsuit Against Ripple Is Pushing The Crypto Firm Outside The US

Ripple may be in the process of leaving the United States market for good as the prominent crypto firm has stated that it will be acquiring the majority of its employee candidates from countries outside the US. 

Ripple Will Recruit A Workforce Overseas

US-based cryptocurrency solutions provider, Ripple has enacted plans to conduct its hiring processes outside US borders. The cryptocurrency firm has stated that over 80% of its workforce will be recruited from countries outside the US that encourage crypto adoption and innovation.

The decision to hire the majority of its workforce internationally can be seen as a strategic move to counteract the effects brought about by the regulatory changes enacted by the United States Securities and Exchange Commission (SEC).

In light of the legal dispute between Ripple and the US SEC, the Chief Executive Officer of Ripple, Brad Garlinghouse expressed his enthusiasm about the crypto firm’s expansion in new regions. He stated that the firm will be focusing on hiring candidates in regions like Singapore, Hong Kong, and Dubai which have favorable outlooks and regulatory conditions on cryptocurrency. 

“It’s super frustrating that you see markets like we have here in Singapore, where governments are partnering with the industry, providing clear rules, and you’re seeing growth. That’s why Ripple is hiring there,” Garlinghouse stated in an interview with Bloomberg. 

Presently, the United States does not have a clear regulatory framework for cryptocurrency assets, and the US Congress has also been relatively slow in clarifying the status of cryptocurrencies.

Ripple (XRP) price charr from Tradingview.com (US SEC)

SEC Lawsuit Developments

Ripple has been embroiled in a lawsuit with the US SEC since 2020. The SEC had previously sued Ripple for allegedly raising over $1 billion in unregistered securities offerings by selling XRP. 

In July 2023, Ripple secured a victory after Judge Analisa Torres ruled in favor of Ripple and stated that XRP was not a security. The SEC responded by filing an interlocutory appeal, however, it is unsure if Judge Torres will grant the SEC’s request.

Over the years, Ripple has reportedly spent over $200 million defending itself against the SEC allegations. The cryptocurrency’s native token XRP was delisted from several exchanges in 2021 while its price declined significantly and lost the majority of the gains it had accumulated over the years.

However, since Judge Torres’s ruling, leading exchanges such as Coinbase and Bitstamp have already moved to relist XRP since the court did not deem programmatic exchange sales to qualify as securities offerings.

Posted on

SEC Boss Gary Gensler Completes Senate Hearing: Here’s What Crypto Investors Should Know

SEC Chairman Gary Gensler is on the hot seat as the Senate Banking Committee demands answers and clarity on a range of topics including the commission’s ongoing investigations in the crypto space and Gensler’s belief that cryptocurrencies should be regulated under the securities law. 

Senate Banking Committee Grills Gensler

Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC) was cross-examined by the Senate Banking Committee on Tuesday, September 12. The committee probed the SEC boss for clarification on the commission’s complex rules changes and the ability of these new regulations to address future market failures.  

Following the hearing, a Journalist at Fox Business, Eleanor Terrett, revealed in an X (formerly Twitter) post a list of key points from the hearing between SEC Chair Gary Gensler and the Senate Banking Committee. 

She stated that a variety of topics were discussed in the hearing, with Artificial Intelligence being the primary focus, while cryptocurrency was discussed on a small scale. Nevertheless, Terrett explained that the members of the committee brought to light Gensler’s rule-making pace, and his aggressive pursuit of crypto firms in the industry. 

Republican members of the committee mostly questioned Gensler on his activities in the crypto industry. Some members felt he was encouraging a turbulent environment in the crypto space by enacting new rules and regulations at an excessively fast pace. However, other members felt he was not putting enough effort into positioning the crypto industry under the commission’s heel. 

Gensler responded by saying that the US SEC was enacting rules and regulations at a determined pace much slower than the committee’s previous Chairs. As an example, Gensler explained that he provided the public with a sufficient timeline of 70 days to make comments on the commission’s most recent securities rule which involved climate change. 

When asked about approvals for Grayscale’s spot Bitcoin ETFs, Gensler avoided making any solid statements. However, he emphasized the importance of securities law in regulating digital assets like cryptocurrency and protecting investors in the crypto industry from fraud and risks. 

“I think at the heart of our securities laws is protecting investors against fraud. They get to decide. They get to take the risk. I’m not negative or minimalist about crypto. I just think it would be best if it’s inside the investor protection regime that Congress laid out,” Gensler stated in the hearing. 

Crypto total market cap chart from Tradingview.com (SEC boss Gary Gensler)

The SEC’s Ongoing Battle With Crypto Industry

The ongoing battle with the US SEC and the crypto industry has been dominating headlines for years now. The regulatory commission has been striving to assert its authority and establish clear rules and guidelines for the rapidly evolving crypto sector. 

In its attempt to govern the crypto sector, the US SEC has filed multiple lawsuits against different crypto firms including Ripple, Gemini, and crypto exchanges like Binance and Coinbase. 

In light of this, many crypto industry leaders and political leaders supporting the advancement of cryptocurrency argue that the SEC’s classification of cryptocurrencies as securities stifles innovation and imposes unnecessary restrictions on digital assets. 

Posted on

Pro-XRP Legal Expert Takes The Spotlight With Daring Ripple Vs SEC Settlement Theory

There have been talks about the US Securities and Exchange Commission (SEC) and Ripple Labs reaching a settlement following the ruling that XRP isn’t a security. Following this, Pro-XRP lawyer John Deaton has stated a key factor that could lead to a settlement between both parties.

Coinbase’s Motion Key To Settlement

In a tweet released on the X (formerly Twitter) platform, Deaton stated that the “only way” the SEC and Ripple can settle this year is if Judge Failla grants Coinbase’s motion to dismiss the SEC’s lawsuit against it. 

The lawyer believes that the key is for Judge Failla to find that token sales on an exchange as part of a programmatic sale do not fall under US securities laws. If that happens, the Commission and its chair, Gary Gensler, may have no choice but to “pivot,” according to Deaton. 

He further noted that Judge Failla’s ruling may be final as he doubts the Solicitor General would allow an appeal as the case could end up reaching the Supreme Court, which could “strip away” the SEC’s powers and that of other federal agencies.

The SEC had filed a lawsuit against Coinbase, alleging that the biggest crypto exchange in the US was operating as an unregistered securities exchange by offering several cryptocurrencies on its platform without first registering with the SEC. 

In response, Coinbase filed a motion to dismiss the case, stating that the regulator was stepping outside its jurisdiction with such an action. The exchange said the token sales weren’t investment contracts but more commodity sales, with “obligations on both sides discharged” once the transaction occurred.

Interestingly, Coinbase cited Judge Torres’ ruling in favor of Ripple that programmatic sales, such as ones on exchanges, didn’t constitute investment contracts. 

Ripple (XRP) price chart from Tradingview.com (SEC)

How Deaton’s Ripple Settlement Theory Could Play Out

Going by Deaton’s theory, it is believed that the SEC would want to settle with Ripple if the court ruled that the Commission has no jurisdiction over token sales on exchanges. This is plausible because Judge Failla granting Coinbase’s request represents a setback for the Commission in its case against Ripple. 

The SEC argues that Ripple’s programmatic sales constituted an investment contract, making XRP a security.  However, a win for Coinbase ultimately makes the programmatic sales argument baseless, and it can no longer further the argument since token sales on exchanges are outside its purview. 

Regarding the SEC and Gensler wanting to “pivot,” as mentioned by Deaton, this could mean the Commission solely focusing on Ripple’s sale to institutional investors, which the court ruled constituted an investment contract. 

Considering that the regulator still has a long way to go to prove which institutional sales were made to domestic investors (the only ones the SEC has jurisdiction over), it may settle with Ripple rather than prolong a case it may eventually lose. 

Posted on

Bitcoin Price Crashes Below $26,000 As SEC Pushes Back On 7 Spot ETF Filings

On August 29, flagship cryptocurrency Bitcoin soared to as high as $28,000 following Grayscale’s victory. However, it has now lost these gains as the US Securities and Exchange Commission (SEC) chose to delay its decisions on seven Spot ETF applications. 

Bitcoin Crashes Below $26,000

Bitcoin dropped by over 4% to $26,000 as the SEC extended the timeline to decide on the ETF applications of BlackRock, WisdomTree, Invesco, Fidelity, Valkyrie, VanEck, and Bitwise.

This price action contrasts with when the cryptocurrency had reacted positively to the news of Grayscale’s victory, with the US Court of Appeals ruling in favor of the asset manager against the Commission. 

Many had looked forward to the SEC’s decision in these ETF applications following Grayscale’s victory, hoping that the legal loss would have softened the regulator into approving these applications. 

However, Bloomberg ETF analyst Eric Balchunas had stated earlier that he would not be “surprised” if the SEC delayed these applications. According to him, these timelines may not matter as much as the SEC is still likely to “give in” at some point, and we will eventually see the approval of these applications. 

Following this extension, the SEC will have another 45 days to review these applications and choose whether to approve, deny, or delay its decision. The regulator also has a maximum of 240 days to decide whether or not to approve or disapprove these applications. However, it has several key deadlines in between.

Bitcoin price chart from Tradingview.com (Spot Bitcoin ETF)

What’s Next For BTC?

Many have projected the approval of a Spot Bitcoin ETF as one of the key events that could spark a significant surge in Bitcoin’s price (as we saw how the market reacted following Grayscale’s victory). However, the SEC’s decision to delay these applications shows that it is not ready to back down just yet, and there could be continued resistance to approving a Spot Bitcoin ETF.

While the approval of a Spot Bitcoin ETF remains uncertain, Bitcoin may be hanging in the red throughout this month. According to historical data, September has always been known to be bearish for Bitcoin’s price as the digital asset has closed in the red most times at the end of September. 

Meanwhile, October seems more promising as there are major days to watch as Bloomberg analyst James Seyffart noted that the SEC’s next deadline for these ETF applications is in October. Ethereum Futures ETFs are also expected to launch in October, which could be a major boost for the market.

Despite this, analysts aren’t hopeful of Bitcoin hitting any new highs this year, as one predicts that Bitcoin could consolidate between $25,000 and $32,000 for the remainder of this year.

Posted on

Court Says Yes To Binance Request In Case Against SEC

In a new development in the ongoing case between crypto exchange Binance.US and the Security and Exchange Commission (SEC), the Court has approved Binance’s request for a new attorney. Following approval from Judge Amy Jackson, attorney Andrew Rhys Davies can now appear in court for Binance.US.

Approval From US Judge

According to a previous filing, attorney Andrew Rhys Davies had initially filed to represent Binance pro hac vice in the lawsuit. However, the federal judge had asked Davies to file a notice of appearance. 

In the latest filing details on August 30, Davies filed a notice of appearance for BAM Management US Holdings and BAM Trading Services – the company behind Binance.US. 

Granting the motion would mean Davies can now represent Binance in court pro hac vice, as the attorney is not licensed to practice in the jurisdiction. The pro hac vice is usually applied when an attorney who has not been admitted to practice in a certain jurisdiction can participate in a particular case in the jurisdiction. 

Davies’ addition to Binance’s legal team comes with years of experience in cross-border cases involving securities, banking, and financial regulation. 

“MINUTE ORDER granting 99 Motion for Leave of Andrew Rhys Davies to Appear Pro Hac Vice only upon condition that the lawyer admitted, or at least one member of the lawyer’s firm, undergo CM/ECF training, obtain a CM/ECF username and password, and agree to file papers electronically,” the court approval document read.

Binance Coin (BNB) price chart from Tradingview.com (SEC)

Details Of The SEC – Binance.US Lawsuit

The ongoing lawsuit between crypto exchange Binance and the SEC has dragged on for a while, with both parties filing different motions. In its latest move, the SEC filed a motion for leave to file documents under seal in the ongoing case. 

According to law experts, this could imply that the filing was made to protect details of a criminal investigation into Binance. Additionally, it could have also been filed to protect the safety or identity of a witness or company involved in the case.

Binance also previously filed a protective order motion against the SEC. Details of the court filing show that the exchange wanted relief from the regulators’ “fishing expedition” and requests for communications that have become “overboard.” 

However, Federal Judge Amy Jackson has since passed on the protective order motion to Magistrate Judge Faruqui. 

The crypto industry is closely watching how the SEC vs. Binance case unfolds as the outcome could set a precedent for how the regulator approaches the entire crypto industry.  

Posted on

Party In The USA: Ripple Gets Ready To Properly Celebrate Triumph Over SEC

The Ripple community is currently at the edge of their seats after the company’s founder and CEO made announcements to officially host a party to commemorate the cryptocurrency’s triumph against the US SEC. 

Hosting A Grand Celebratory Bash

Ripple, a leading global payments network, declared openly on Monday, August 28, its intentions to throw a dedicatory party to honor its win over the United States Securities and Exchange Commission (SEC). 

Ripple’s win against the US SEC is not only a positive result for the cryptocurrency, but a significant milestone for the cryptocurrency industry in regards to regulatory clarity and transparency. 

It’s understandable the relief the Ripple community feels after going through many hurdles that came with the SEC lawsuit, not just in monetary losses, but in its reputation and position as a cryptocurrency with as much potential as Bitcoin. 

Ripple has disclosed some information about the celebratory party on X (formerly known as Twitter). The cryptocurrency firm stated that the party will be hosted in New York City on Friday, September 29, emphasizing to the general public to “save the date” and look forward to a great celebration.

“We’re hosting a community celebration on September 29 in New York City! Stay tuned for more details to come later this week,” Ripple tweeted.

The CEO of Ripple, Brad Garlinghouse also took to X, enthusiastically informing the public of the date of the party and how he looks forward to properly commemorating the cryptocurrency’s victory against the US SEC. 

“As promised – it’s time for that proper victory party,” Garlinghouse said. “The last few years have been quite the journey and I look forward to sharing a celebratory toast on Sept 29 in NYC!”

Ripple (XRP) price chart from Tradingview.com (SEC victory)

The Spin-Off From Ripple And SEC Lawsuit

Ripple and the US SEC have been embroiled in a lawsuit for years. The SEC first filed a lawsuit against Ripple in 2020, alleging that the cryptocurrency firm was selling unregistered securities in its native token, XRP. 

Instead of accepting the SEC’s demands and paying the liabilities, Ripple responded to the allegations by engaging in a legal battle that has been ongoing for about three years. 

During those years, Ripple has lost hundreds of millions of dollars in its effort to defend against the SEC’s allegations. Its native cryptocurrency was delisted from several exchanges including Bitstamp. The token also suffered from massive liquidations in the XRP futures contract.

It was only this year that things started turning around for the cryptocurrency after Judge Analisa Torres ruled in favor of Ripple and declared that programmatic XRP sales should not be labeled a security. 

XRP sales jumped following Ripple’s partial win against the SEC. The cryptocurrency firm also inked a new partnership with Mastercard and is poised to be listed on Gemini. 

Even though the SEC is not too happy with Ripple’s win over the case and has submitted an interlocutory appeal against the cryptocurrency firm, XRP’s price remains somewhat stable. The crypto firm has also remained strong and enjoyed the support of notable cryptocurrency enthusiasts including Pantera CEO, Dan Morehead who labeled Ripple’s victory as a “positive black swan.”

Posted on

MasterCard Axes Partnership With Binance Amid Regulatory Pressures

The crypto space is in pandemonium after MasterCard, a global payment service giant, announced the imminent termination of its services and alliance with the Binance crypto exchange.  

Mastercard To Sever All Ties To Binance

Binance, the world’s largest cryptocurrency exchange by trading volume, is facing new challenges that could impact its reputation and growth rate. According to reports, Mastercard will discontinue its services on Binance, ending a years-old relationship and crypto cards programs starting Friday, September 22. 

The reason for the abrupt termination has not been clarified by Mastercard. Some have attributed the news to the recent regulatory challenges and lawsuits Binance has been up against since this year. 

Binance has refrained from making any comments regarding the reason for the suspension or who initiated the decision first. However, the crypto exchange has reassured users around the globe, stating that their Binance accounts are not affected by the news and they can continue their crypto transactions per usual. 

“Binance accounts around the world are not affected. Where available, users can also shop with crypto and send crypto using Binance Pay, a contactless, borderless, and secure cryptocurrency payment technology designed by Binance,” Binance stated.

Mastercard and Binance have been working together as partners for about four years. Around August 2022, they both joined hands to initiate debit card programs for four major countries, allowing users in Brazil, Argentina, Colombia, and Bahrain to have access to cryptocurrency assets via their Mastercards linked to a cryptocurrency wallet. 

Binance first partnered with Mastercard to launch crypto card payments in Brazil and Latin America at the beginning of 2023. The crypto exchange then made a similar announcement and launched prepaid crypto cards in Argentina in August 2022. 

Binance Coin (BNB) price chart from Tradingview.com (MasterCard)

Financial Service Companies Break Away Following SEC Lawsuit

Binance has been in a legal battle with the United States Securities and Exchange Commission (SEC) since June when the SEC sued the crypto exchange for allegedly offering unregistered securities. The regulator further attempted to freeze all Binance assets stating that the crypto exchange was operating a “web of deception” and filing 13 charges against Binance. 

Since then, Binance has been facing regulatory hurdles and industry challenges with many companies ending year-long partnerships and the price of BNB declining as a result. 

The cryptocurrency exchange has also ended several projects in the course of a month and carried out massive layoffs following the SEC’s Lawsuits. 

Recently, Binance shut down all cryptocurrency service operations on its official fiat-to-cryptocurrency payments provider, Binance Connect. The cryptocurrency exchange also discontinued its partnership with Checkout.com, a global payment service, after Checkout’s CEO terminated its contract this month.  

Visa, another payment service giant, also cut ties with Binance in July and stopped supplying co-branded cards with Binance in Europe. 

At the moment, it is unsure what the outcome of the SEC and Binance case would be. However, the results will undoubtedly impact the crypto industry and financial sector.