Several updates related to XRP have presented a possibility for the cryptocurrency to regain momentum. On the 31st January 2023, a U.S. judge limited the Securities and Exchange Commission’s (SEC) authority in secondary crypto markets, which could set a precedent for securities law in the ongoing Ripple Labs vs SEC case.
Crypto Law Founder and Ripple advocate John Deaton considers the outcome of the LBRY vs SEC case crucial for the future of securities cases, as the SEC relies on similar “secondary markets” terminology in its case against Ripple.
The SEC alleges that Ripple sold XRP, which raised money for Ripple Labs and two of its senior executives, without registering it as a security according to the 1933 ‘Securities Act.’
Ripple contests that XRP, used as a tool to facilitate money transfers, is not a security as it was sold on the secondary market, and profits were not pooled.
The Ripple vs SEC case outcome and the current state of XRP in the cryptocurrency market are closely related. The SEC’s recent reply brief, which referred to the LBRY case 21 times, suggests that the outcome of the LBRY case could offer insight into the resolution of the Ripple vs SEC case.
A positive outcome for Ripple could attract fintech companies to the U.S., while a negative result could result in a mass exit of crypto firms and talent.
In the cryptocurrency market, XRP’s current position remains uncertain. Despite a 17.3% increase year-to-date (YTD), XRP’s price is still bearish territory and has failed to break the 200-day Exponential Moving Average (EMA) over the past two weeks.
XRP is trading at $0.3945 at the time of writing and has found support at the 50 and 100-day EMAs. A break of the 200-day EMA, which currently stands at $0.4147, would be necessary to trigger bullish momentum and could cause the price of XRP to skyrocket.
An upward crossover of the 50-day EMA by the 200-day EMA, known as a golden cross, could signal the start of a new uptrend. If this occurs, the main resistance for the bears would be at the $0.54 level. If the bulls successfully break through this level, XRP could reach a nine-month high, a level not seen since the Terra Luna collapse.
The outcome of the Ripple vs SEC case and the current state of XRP in the market should be closely monitored. A positive outcome of the case and a bullish trend in the market could have a significant impact on XRP’s value.
The outcome of the SEC lawsuit against Ripple Labs has implications for the wider cryptocurrency regulatory future. It will set a precedent for how similar cases are approached and potentially affect the broader crypto community.
Find out more on recent changes at Ripple:
Ripple Shakes Up Leadership Ahead of XRP Lawsuit Outcome – What to Expect in Advance – DailyCoin
For more information on the SEC and Ripple Lawsuit:
Ripple vs. SEC Saga Approaches an End as Crypto Firm Files Final Submission – DailyCoin
See original on DailyCoin
Source: Cryptocurrency - investing.com
