Ripple
SEC’s Motives Questioned After Latest Ripple Case Developments
SEC’s Motives Questioned After Latest Ripple Case Developments
The recent release of documents from a 2019 deposition of William Hinman, the former director of the US Securities and Exchange Commission’s (SEC) Division of Corporation Finance, have sparked new controversy in the ongoing legal battle between the SEC and Ripple. The documents suggest that the SEC’s classification of Ripple’s XRP as a security was not clear or consistent, raising questions about the agency’s motives.
Background
The SEC filed a lawsuit against Ripple in December 2020, claiming that the company conducted a $1.3 billion unregistered securities offering through its sale of XRP tokens. Ripple has maintained that XRP is not a security but rather a cryptocurrency like Bitcoin or Ethereum, and therefore falls outside of the SEC’s jurisdiction. The case has been closely watched as it could have significant implications for the broader cryptocurrency industry and its regulation in the US.
The Hinman Documents
The latest development in the case came in late June when Ripple was granted access to internal SEC communications regarding cryptocurrencies, specifically documents related to the SEC’s decision to classify Bitcoin and Ethereum as not a security. Among these documents was a transcript of a 2019 deposition of William Hinman, who was considered a key architect of the SEC’s policy approach to cryptocurrencies during his tenure there. In the deposition, Hinman appeared to suggest that XRP was not a security, stating that “the characterization of XRP as a security is not clear”.
This contradicts the SEC’s current stance, which has classified XRP as a security and accused Ripple of conducting an unregistered securities offering. This inconsistency has led many to question the motives behind the SEC’s case against Ripple, with some suggesting that the agency may be using the case to establish itself as the regulatory authority over the cryptocurrency industry.
The Ripple Case and Cryptocurrency Regulation
The Ripple case has brought up broader questions about the regulation of cryptocurrencies in the US. The lack of clarity around the SEC’s jurisdiction and classification of different cryptocurrencies has led to confusion and uncertainty for companies in the industry. While Bitcoin and Ethereum have been deemed not to be securities, other cryptocurrencies such as XRP, Litecoin, and Bitcoin Cash have not yet received clear classification from the SEC.
The SEC has been criticised for its lack of clarity and consistency in regulating cryptocurrencies, with some arguing that the agency’s approach is stifling innovation and hindering the growth of the industry. The Ripple case is seen as a potential turning point in this regulatory landscape, with many hoping that a favourable outcome for Ripple could lead to greater clarity and consistency in regulation.
The release of the Hinman documents has raised new questions about the SEC’s motivations for pursuing the case against Ripple. The inconsistency between Hinman’s 2019 deposition and the current classification of XRP as a security has led many to question whether the SEC is using the case to establish its authority over the cryptocurrency industry. The Ripple case has broader implications for the regulation of cryptocurrencies in the US, with many hoping that a favourable outcome for Ripple could lead to greater clarity and consistency in the future.
XRP price has been in the red for the past few days against the backdrop of the global cryptocurrency market turmoil. XRP has crashed by nearly 19% over the past week and 29.50% in the month to date. Even so, the altcoin remains 52.49% higher in the year to date. The asset’s total market capitalization has crashed over the past few days to $27 billion, with the total volume of XRP traded over the last 24 hours falling by more than 24%.
Crypto Selloff
XRP price has been in a steep decline over the past few weeks after jumping to its highest level since April 2022 in July. Ripple, the cryptocurrency company behind XRP, recorded a landmark court win against the US Securities and Exchange Commission earlier in July after 3 years of struggle. The judge presiding over the case ruled that XRP was considered a security when solely sold to institutional investors. The ruling by the federal judge saw the XRP price skyrocket by nearly 80% to $0.9380. Even so, the ripple effect from the court win did not last long enough to sustain the XRP price, prompting a 39% decline since.
The cryptocurrency market has been in jitters over the past few weeks amid the decline in market sentiment and global economic uncertainty. The global cryptocurrency market cap has plunged to $1.05 trillion, while the total crypto market volume continues to increase. Last week, Bitcoin,…
Ripple Teams Up with Colombian Central Bank to Explore Blockchain Technology
Introduction
Ripple has announced a new partnership with the Central Bank of Colombia to explore the potential of blockchain technology. As part of the collaboration, the bank plans to set up a pilot program using Ripple’s blockchain-based solutions to facilitate cross-border payments, with the aim of reducing the time and cost associated with these transactions.
Details of the Partnership
The Central Bank of Colombia will work closely with Ripple to create a pilot program that will utilize the company’s blockchain-based technology to facilitate cross-border payments. The ultimate goal of this program is to reduce the time and cost associated with these transactions, thereby increasing efficiency in international payments.
According to Ripple’s Vice President of Business Development, Emi Yoshikawa, the Central Bank’s interest in blockchain technology highlights the need for more efficient payment systems. She noted that Ripple’s solutions provide a faster and more reliable way to move funds across borders, making it an ideal fit for the bank’s needs.
The Importance of the Partnership
This new partnership is a significant milestone for Ripple and the wider blockchain industry. It underscores the growing recognition of blockchain technology as a viable solution for cross-border payments, a market that is estimated to be worth trillions of dollars.
Moreover, the partnership signals an increasing interest from central banks around the world in exploring blockchain technology. As noted by Yoshikawa, central banks are becoming…
XRP price has been in a freefall for the past few days as macroeconomic factors eclipse the euphoria around Ethereum’s Shapella upgrade. At press time, XRP was changing hands at $0.4707. The altcoin’s total market cap has crashed 4.73% to $24.3 billion over the last day, while the total volume of XRP increased slightly higher. XRP currently ranks as the 6th largest cryptocurrency after the USD Coin and ahead of Cardano.
Fundamentals
XRP price has been under intense pressure for the past few days on the back of the recent bearish sentiment in the crypto market. The global crypto market has been ticking lower for the past few days as crypto leaders, Bitcoin and Ethereum, led the losses. Statistics by Coinmarketcap show that the global crypto market cap has slipped to $1.19 trillion, a 2.30% decrease over the last day.
Bitcoin, the largest cryptocurrency by market cap, has 2.84% in the past 24 hours to $28,042, while Ethereum, the largest altcoin, fell 2.02% to $1,918.15. The performance of BTC and Ether largely influences the performance of other cryptocurrencies. The decline in crypto prices has been linked to the increase in selling pressure and profit-taking by investors.
Additionally, the uncertainty over the Fed’s monetary policy, as well as concerns about the global economy, have been outweighing post-Shapella gains. Markets have been pricing in a potential interest rate hike by the Federal Reserve. Markets anticipate a 25-basis point interest…
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