Ripple: The XRP Army picks a fight with the SEC
The US Securities and Exchange Commission (SEC) believes that accepting Ripple’s latest motion would be mean that senior government officials would also have to give evidence.
Ripple vs SEC, a justified fight?
The lawsuit between Ripple Labs and the SEC continues. The regulator argues that XRP token holders are lambasting members of social media platforms with fake news.
Last Thursday, the SEC addressed a motion to Justice Sarah Netburn in which it demanded the formal cancellation of Ripple’s motion. This document stipulated William Hinman’s refusal to appear before the court. Hinman is the former director of the SEC’s corporate finance division.
The SEC believes that validating Ripple’s motion would set a precedent of authorising a succession of testimonies from senior state officials, which would thwart the US government’s plans.
XRP, a title like so many others
As recently as December 2020, the SEC filed a lawsuit against Ripple Labs CEO Brad Garlinghouse and its co-founder, Chris Larsen, for launching an offering of unregistered and ongoing digital asset securities, in the form of XRP token sales. This caused the XRP trading to be suspended, and even removed, by crypto exchanges.
In March 2021, Ripple saw fit to end its partnership with the money transfer specialist MoneyGram. The company claimed that XRP was completely identical to Bitcoin (BTC) and Ether (ETH), and accused the regulator of misclassifying XRP with raw materials, instead of considering it a security.
For XRP holders, the SEC’s management supports propelling the Chinese economy to the top spot in the world. This theory has been promoted on social media by the XRP Army, the diehard Ripple supporters. For this reason, they demand an investigation into former SEC President Jay Clayton and Hinman. They also argued for the XRP token to be relisted after the lawsuit against the SEC.
All this excitement comes after XRP’s yearly high of $1.78. It has now sat below a dollar for a month. Currently, its value its around $0.63: a drop of more than 35% in just 30 days.
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