Despite the Ethereum rally after the successful London hard fork, experts are focused on the fast growth of the XRP price, which has already surpassed the $1 level.
Ethereum is correcting slightly after growing by almost 90% over the month, and the market may have a new leader. Cryptocurrency XRP added about 40% over the week, despite the absence of visible fundamental factors. The main argument in favor of XRP is that it is the only large-cap cryptocurrency that has not hit its all-time high of $3.84 since 2018. The reason is the SEC lawsuit against Ripple filed in December 2020, but now it is clear that Ripple is winning this legal action, although the SEC is not giving up. Ripple’s position is being strengthened by the fair rulings of Judge Sarah Netburn, who is taking into account the shift in US public opinion in favor of cryptocurrencies.
SEC Chairman Gary Gensler recently proposed to increase regulation of decentralized exchanges. But in response, former Commodity Futures Trading Commission Chair Christopher Giancarlo said that the SEC should not regulate cryptocurrencies at all, since cryptocurrencies are commodities.
Nevertheless, the SEC is trying to prove in court that XRP is a security, and it demanded to provide internal correspondence of Ripple employees, which they conducted through the popular corporate messenger Slack. SEC officials hope to find in these messages something that will prove that XRP tokens were being traded like security. Jeremy Hogan’s lawyer said:
– It (SEC) is attacking from the flank and arguing Ripple marketed and treated XRP like a security and therefore it is. The SEC has had some success with this argument in the past and it makes sense as a strategy since in all substantive ways XRP is NOT like a security.
The request for internal correspondence between Ripple employees is a response to Ripple’s request to question in court the former SEC’s director of corporate finance, William Hinman. Hinman declared under oath that he made a statement back in 2018 that bitcoin and Ethereum are not securities. Ripple’s lawyers only have to prove that XRP doesn’t differ technically from BTC and ETH.
However, the SEC refused to provide the court with the internal documents that were adopted by the Commission in this regard. Ripple’s lawyers hope Judge Netburn can order monetary sanctions against the Commission for failing to comply with the court’s decision and even dismiss the SEC’s claim against Ripple if SEC remains uncooperative.