- SEC accused Ripple of selling unregistered securities in the form of XRP tokens.
- Going on since December 2020, in these two years, the SEC has failed to prove their point.
- Hoping for a win, investors are buying XRP.
The crypto community is hoping for positives in the Ripple vs. SEC case that has been running for the past 2 years. Many institutional investors are assertive of victory, so much so that they have already started acquiring huge volumes of XRP tokens, although there’s selling pressure on top assets. Reports suggest that large-scale investors recently bought $3 million worth of XRP tokens.
The Securities and Exchange Commission claimed that Ripple sold XRP tokens without registering them with the concerned authorities and that these tokens are securities.
Since the start, SEC could not prove its allegations against Ripple, and hence the majority of investors are optimistic that the commission may have no proof to support the claims and that Ripple may win the case.
Currently, it was trading at $0.3871 with a drop of 2.61%; its value against Bitcoin fell by 2.36%, while its market cap of $19.6 billion slipped by 2.61%, only its volume managed to jump by 17.61% at $1.2 billion. Having a market dominance of 1.99%, it is ranked at 6.
The positivity surrounding the expected result of the legal battle is impacting the XRP price,
Since the last week of December 2022, there has been a massive outflow in the market. Media reports that the total outflow from crypto investment products has been $9.7 million over the last week, proving the negativity in the market. BTC recorded a $6.5 million outflow alone.
Ethereum investment products saw $3.1 million worth of outflow and $4.5 million combined outflow from multiple crypto investment products. But at the same time, LTC and BNB saw inflows of $0.2 million.
Ripple has filed a motion demanding the SEC’s expert testimony and exhibits be struck out. The request came when the expert could not confirm or deny that they were selling unregistered XRP tokens as securities. Moreover, the expert’s explanation of the base of the case 1934 SEC Act is not concerned with the case.
Further adding to the request, Ripple said that the expert was not experienced enough with digital assets and had failed to analyze the material disclosures of XRP purchasers.
At the same time, SEC has also requested to exclude ten Ripple testimonies, arguing that these testimonies failed the Howey test and could not pass the three main criteria.
SEC wants the removal of these four testimonies of Ripple experts, namely, Carol Osler, Allen Ferrel, Prof. Alan Schwartz, and Peter Adriaens.
SEC wants Schwartz’s testimony to be removed because of contact interpretation deemed inappropriate by the regulators.