XRP Tussle Heats Up as Lawyer Accuses SEC Chair

Ivan Crasto December 15, 2023 0 Comments Ripple, Ripple Labs, SEC, XRP

Coinbase joins XRP, arguing the SEC’s broad definition of a security hinders crypto innovation and the SEC misrepresents the crypto market.
Denying the SEC’s request for internal deliberations strengthens Ripple’s case and fuels hope for a favorable outcome.
Technical indicators show mixed signals, with support around $0.35 and resistance at $0.45, highlighting cautious optimism despite legal and market uncertainties.
This case represents a clash between centralized and decentralized approaches to finance, with implications for regulations and the future of crypto in the US.

The ongoing saga between Ripple Labs, the creators of XRP, and the US Securities and Exchange Commission (SEC) has taken a fiery turn, with accusations of “gaslighting” flying from Coinbase’s legal counsel. The dispute centers around whether XRP, the second-largest cryptocurrency by market capitalization, is a security or a commodity. This seemingly technical question has far-reaching implications for the entire crypto industry in the United States.

Tale of XRP and Securities and Exchange Commission

The SEC’s narrative is that XRP was offered and sold as an unregistered security, violating securities laws. They argue that Ripple Labs misled investors by promoting XRP as an investment opportunity with the potential for substantial returns.

Ripple Labs, on the other hand, maintains that XRP is a utility token used for fast and efficient cross-border payments, making it a commodity. This distinction is crucial, as securities are subject to stricter regulations than commodities.

Coinbase steps in the fray

Coinbase, the major US cryptocurrency exchange, has become a key player in the battle between XRP and SEC. The exchange, which lists XRP, filed an amicus brief in support of Ripple Labs. Indeed, Coinbase is arguing that the SEC’s broad definition of a security could stifle innovation in the crypto space. Coinbase’s General Counsel, Paul Grewal, went even further, accusing SEC Chair Gary Gensler of “gaslighting” the American public by claiming that crypto markets are rife with fraud and manipulation.

@GaryGensler with the backing of @ewarren is 💯 gas lighting the American people. In this letter, he states that there is NOTHING unique or new about cryptocurrencies, and states existing laws easily apply to crypto.

BUT THAT’S NOT WHAT GENSLER SAID UNDER OATH.

At his… https://t.co/tlR7yEFMMS
— John E Deaton (@JohnEDeaton1) December 15, 2023

Gaslighting in the Cryptosphere?

Grewal’s accusations are strong. “Gaslighting” refers to a form of psychological manipulation where someone deliberately distorts or fabricates information to make someone question their own reality. Grewal argues that the chair person of the United States SEC portrayal of the crypto market as a lawless wasteland is inaccurate. Moroever, he believes that the words are misleading and designed to justify the SEC’s overreach and stifle competition.

Ripple Labs continues to stay optimistic

Despite the ongoing legal battle, Ripple Labs remains optimistic. The company recently secured a major victory when a US district court judge denied the SEC’s motion to compel them to reveal internal deliberations about XRP’s status. This decision was seen as a blow to the SEC’s case and a potential sign of things to come.

The outcome of the Ripple vs. SEC case will have significant ramifications for the entire crypto industry in the United States. If the SEC prevails, it could set a precedent for how other cryptocurrencies are regulated, potentially hindering innovation and growth. If Ripple Labs wins, it could provide clarity and pave the way for a more favorable regulatory environment for crypto.

Ripple and SEC battle is crucial for the industry

The Ripple vs. SEC case is not just about a single cryptocurrency. It represents a clash between two visions for the future of finance: a centralized, top-down approach championed by the SEC, and a decentralized, bottom-up approach driven by the crypto community. The outcome of this battle will likely shape the future of money and finance for years to come.

With the legal proceedings ongoing and tensions high, the Ripple vs. SEC saga is far from over. The accusations of “gaslighting,” the legal victories for Ripple Labs, and the broader implications for the crypto industry all point to a story with no clear ending yet. As the drama unfolds, one thing is certain that the battle for the future of crypto in the US has reached a critical juncture.

Will the token hold its ground in such a situation?

The current technical picture presents a mixed bag for XRP. While bullish arguments exist, the lingering legal uncertainty and broader market conditions necessitate cautious optimism.

While the legal battle rages on, investors are also keenly watching XRP’s technical indicators for clues about its future trajectory. Despite the ongoing uncertainty, XRP has shown some resilience, recently finding support around the $0.35 mark. The RSI, which measures momentum, remains below 50, indicating a neutral market sentiment. This could be interpreted as a potential for either a breakout or further consolidation.

The zone between $0.35 – $0.40 has acted as a strong support level in recent weeks. This data is offering potential bounce points for the price. The 200-day moving average (MA) also lies within this range, further adding weight to its significance. Simultaneously, the zone between $0.45 – $0.50 has been a major hurdle for XRP in recent times, acting as a ceiling for its upward momentum. Breaking through this resistance could signal a potential shift towards a more bullish trend.

The ongoing case between Ripple and the Securities and Exchange Commission continues to cast a shadow. This battle is deterring some investors and dampening price growth.