Amidst the high market volatility caused by the US economic policy, XRP stands out for the lack of positive dynamics. Analysts see the reason in the actions of the SEC, aimed at dragging out the lawsuit.
In December 2020, the Securities and Exchange Commission filed a lawsuit against Ripple, accusing it of selling unregistered securities under the guise of the XRP cryptocurrency. Prior to this, XRP held the third position in the ranking of cryptocurrencies by capitalization for years and was popular among investors. Ripple also regularly increased its partnerships around the world, this contributed to the adaptation of XRP. And thanks to Ripple’s flagship On-Demand Liquidity (ODL) product, the capitalization of the cryptocurrency had been constantly growing.
After the start of the lawsuit, XRP fell sharply from the price of $0.66 to $0.21, but then bounced back to its previous value when it turned out that the court was set to fairly consider the lawsuit of the state regulator. For almost a year, XRP has been correlated with the broader market and with bitcoin. Ripple rose at the same time that BTC rose to $63K in April 2021. The price of XRP was over $1.55 at that time.
However, at bitcoin’s second high of the 2021 year, when BTC hit an all-time high of around $69K, XRP’s growth was not significant, the coin only rose to $1.28. XRP is now trading around $0.6, which is lower than it was before the lawsuit began. Obviously, delaying the consideration of the case does not benefit Ripple.
Now the SEC is building another barrier to complete the trial. The commission received a reprieve until February 17 to challenge a court order to release documents requested by Ripple. Ripple lawyers requested drafts and emails related to the preparation of a speech by former director of the SEC’s Division of Corporate Finance William Hinman.
In this speech, the recognition of bitcoin and Ethereum as cryptocurrencies was made. Hinman stated that he doesn’t think Bitcoin (BTC) or Ethereum (ETH) are securities due to the decentralized structures of their networks. networks. Ripple’s lawyers base their defense on this statement of the SEC official, as the Ripple network is also decentralized.
Previously, the SEC tried to prove that Hinman’s speech contained his private assessment and not the SEC’s decision. If the court will consider documents that confirm that Hinman received from the management approval for his statement, this could put an end to the protracted case. However, now everything looks like this evidence will not be taken into account. Ripple lawyer Jeremy Hogan tweeted that ‘there is no silver lining to the ruling for Ripple’ in this decision.