- The price of XRP soared 50% in the last 7 days as per CMC.
- Both Ripple and the SEC had filed petitions for summary judgement.
After a good week of gains, and with investors hoping the SEC’s case against Ripple may soon be coming to a conclusion, the price of XRP, the cryptocurrency initially introduced by the founders of crypto payments firm Ripple, soared 50% in the last 7 days as per CMC.
XRP trading has calmed down today and is trading in the red. Despite the overall decline in the crypto market, this was still enough to propel a 50% weekly increase and a return to the top six currencies by market valuation. While Ethereum continues to fall after the merge, Bitcoin is trading at around $19,000.
Judgement Around the Corner
The rise in XRP value comes after reports surfaced earlier in the week that both Ripple and the SEC had filed petitions for summary judgement in the $1.3 billion case, requesting the court to dismiss the matter without going to trial. In December 2020, the SEC filed accusations against Ripple, alleging that the sale of XRP constituted an unregistered offering of securities.
To back up its claim that it owes no fiduciary duty to XRP investors, Ripple included a memorandum with its submission arguing that it did not do so during the token sale.
The SEC, on the other hand, claims that XRP is a security because it passes the Howey Test, which has been used as a yardstick since the 1930s to determine whether or not an asset may be classified as an investment contract under U.S. federal law. The authority says that those who purchased XRP did so with the intention of making a profit and that their actions may be equated to investing in a joint venture.
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