The price of $XRP, the native token of the XRP Ledger, has surged after reports revealed that both Ripple and the U.S. Securities and Exchange Commission (SEC) are looking for a ruling in their long-running legal battle through a so-called summary judgment.
According to available data, the price of XRP is up around 14% over the past week, which most of its gains coming after September 19 when reports of the attempts to seek a summary judgment started coming in.
XRP’s surge means it’s significantly outperforming the wider cryptocurrency market, as over the same period Bitcoin’s price plunged by 4.7%, while Ethereum’s price dropped by around 7.3% amid a wider cryptocurrency market sell-off.
The price of XRP likely surged because both the SEC and Ripple have asked for a swift judgment in the regulator’s case against the fintech firm over its sale of XRP tokens. Both are looking for a summary judgment, according to recently filed documents.
The filings suggest neither party wants the legal action to continue to a full trial. The SEC sued Ripple and two of its executives in 2020, alleging they sold unregistered securities when they issued $1.3 billion worth of XRP tokens. Ripple denies XRP is a security.
In the case, a major point of contention emerged over a speech from former senior SEC staffer Bill Hinman, who explained in 2018 that he didn’t consider top cryptocurrencies BTC and ETH to be securities. Ripple has been seeking to obtain documents and communications related to the speech, which the SEC has been trying to shield.
Ripple has recently argued that XRP tokens cannot be considered securities as there was no “investment contract” given to investors that outlined their rights or obligations. Ripple’s filing reads:
- The SEC’s untethered position would convert the sale of all types of ordinary assets – diamonds, gold, soybeans, cars, and even works of art – into sales of securities. Congress has given the agency no such authority.
Earlier this year, Ripple’s CEO Brad Garlinghouse noted that he believed the company would prevail in its legal battle against the regulator.
As CryptoGlobe reported, Ripple settling the lawsuit could lead to an XRP supply shock, which presumably would lead to a price surge as demand would remain the same, while supply plunged. That’s according to legal expert and XRP supporter Jeremy Hogan, who has been following the case.
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