The SEC finally bows to this motion; What could be next for Ripple?
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The long-running legal dispute between the SEC and Ripple seemed to gain momentum this year, but a resolution may be close.
Recently, things have started to take shape, and some people, both inside and outside the crypto community, have been predicting possible outcomes based on how things are right now.
The SEC finally approved the Amicus Curiae after filing multiple complaints against it, according to a recent development. This information was provided in a tweet that described the letter that the SEC delivered to District Judge Analisa Torres.
The Amicus Curiae
Amicus Curiae is a person or group that was not involved in the initial dispute but is allowed by the court to provide information about the case.
In this case, some XRP holders and organizations have stepped forward to provide details about XRP. These details are to determine if Ripple projected and sold XRP as a security.
The SEC has often questioned this, arguing against the importance of these testimonies, but the latest development showed that the motion had been carried.
Since the SEC had continually fought to keep the documents out of court, District Judge Analise Torres finally ordered their release.
In an official capacity, the former director of the Finance Division of the SEC Corporation, William Hinman, stated, in 2018, that he believes that both Bitcoin and Ethereum are not securities. These documents contain his internal SEC communications and early drafts of a lecture he gave on this subject.
In a filing on Oct. 21, the SEC argued that Ripple's request for summary judgment should be rejected because there was indisputable evidence that the defendants had made unregistered offers and sales of securities to the general public.
On the same day, Ripple also responded to the SEC's request for summary judgment arguing that the SEC lacked a credible legal theory to support its claim that Ripple was required to register XRP as a security under the Securities Act of 1933.
XRP Price Movement
The observed price movement of XRP on a daily time frame confirmed an uptrend for this asset. With the Relative Strength Index (RSI) line just above the 50 level, it was clear that the current run was slightly to the upside.
As for the price action, it appeared to be healthy as both the short and long moving averages (MA) represented by the yellow and blue lines respectively, were found to provide support underneath the price action.
The daily time frame chart revealed some higher lows and higher highs, providing an opportunity to forecast the potential level that the price may reach in the future.
With the current price movement, it was possible to see that XRP could rise as high as $0.9 by using the trend-based Fib extension. At the time of writing, XRP was trading at around $0.47.
The Amicus Curiae motion for Ripple would only be successful if these witness accounts can conclusively prove that XRP was never advertised as a security and never sold as such.
This will be the next conflict, and how it turns out will have significant implications for all parties.
The XRP community has become more optimistic about Ripple's chances of defeating the SEC, which has improved the mood surrounding the token.
If the Ripple team were to succeed, exchanges in the US and elsewhere that had not yet listed XRP would. This will make XRP more accessible to broader markets, and perhaps at that point, the real bull run could begin.
Oct 27, 2022