Ripple versus the SEC. The fight is not lost yet!

8/5/2022, 02:30 PM
Ripple versus the SEC. The fight is not lost yet!
In the court case US Securities and Exchange Commission against Ripple (XRP), the parties to the conflict continue to get caught up in legal loopholes. Once again, the so-called "Hinman Speech" is in the spotlight. The SEC wants to continue to ensure that it does not have to make internal documents and accompanying circumstances relating to this speech from 2018 public. The court in New York has now granted the SEC the right to explain its position again.

Ripple considers the SEC's actions to be unlawful. In 2018, then SEC board member William Hinman gave a speech on the cryptocurrency industry and specifically mentioned Ethereum (ETH) as an altcoin that would not be subject to regulation. The current proceedings are about the question of whether Ripple XRP should have registered with the SEC because it could be a security. Since XRP is to be equated with ETH, the discussion is superfluous, Ripple believes. The company's lawyers believe that evidence for their position can be found in the internal SEC communication in preparation for the "Hinman speech". The disclosure has been fought over with hard legal weapons for months.

Specifically, the SEC has informed the defendants that it would only consent if the defendants agreed to repeat disclosure of the filings, allowing the SEC to serve a series of subpoenas. In doing so, she is pursuing the goal of obtaining copies of unspecified video recordings to substantiate her claims. Only if the defendants also agree to waive any authenticity and procedural objections to the unknown SEC videos would the subpoenas to the video platforms be approved
- Ripple

On another front, the SEC went on the offensive. It has applied for Ripple lawyer John Deaton to be excluded from the proceedings and for XRP holders to be stripped of their "Amicus Curiae" status. "Amicus Curiae" describes a group of people in US law who are allowed to participate in a procedure with their own expertise and involvement. Ripple intends to reject the SEC's demands, and a decision by the court is pending.

After the SEC agreed to authenticate the statements made in the video recordings at this meeting, it is now trying to prevent the acquisition of this video footage. The terms of use for the two platforms on which the videos are located prohibit the downloading of content without prior consent. Both platforms require court subpoenas for release of the material.

Ripple requested service of the court documents, but this cannot be done without the SEC's consent. Ripple characterized the SEC's actions as completely inappropriate. The subpoenas are not a reopening of investigations, but simply the implementation of a court order.


Ripple is currently up 0.91% at an XRP/USD price of $0.3725. This puts the cryptocurrency on track to test the 61.8% Fibonacci retracement of $0.3776. If it can clear this on a daily close basis, the door will be open for a extension of the uptrend towards the psychological level of $0.40.

Combined with the 78.6% Fibonacci retracement of $0.4021, this creates a relatively strong resistance area. If the downward pressure increases again, a test of the 50% Fibonacci retracement of $0.3604 is to be expected. Below that, the focus would shift to the 38.2% Fibonacci retracement of $0.3432.