LUCKNOW (CoinChapter.com) — Ripple has regained a substantial advantage in its legal clash with the US Securities and Exchange Commission (SEC). The focus has shifted back to the “Hinman documents,” a critical factor shaping the ongoing legal discourse surrounding Ripple’s native cryptocurrency, XRP.
Over the weekend, there were no SEC vs. Ripple lawsuit updates, leaving investors speculating about the outcome. Ripple, nearing the lawsuit’s end, appears to gain momentum after the court dropped allegations against co-founder Chris Larsen and CEO Brad Garlinghouse.
The SEC sued Ripple Labs for allegedly violating securities laws by selling XRP programmatically and institutionally, claiming it’s an unregistered security. Ripple Labs defended, stating that XRP is a digital asset for transactions, not a security.
Both parties filed motions for summary judgment to determine whether the sales qualify as securities contracts. On July 13 this year, Judge Analisa Torres ruled in favor of Ripple, stating that Programmatic sales and XRP distributions do not constitute securities sales.
The Programmatic Sales ruling played a key role in Ripple’s success. It prompted the SEC to retract charges against Larsen and Garlinghouse. Despite these legal triumphs, the market value of XRP has remained below $0.70. This might be due to lingering uncertainties regarding a potential SEC appeal against the Programmatic Sales verdict.
SEC’s Legal Maneuvers and Ripple’s Programmatic Sales Victory
The SEC’s legal strategy takes center stage as it grapples with the aftermath of Ripple’s Programmatic Sales triumph. While Ripple secured victories in both aspects of the case, the SEC’s potential appeal may complicate the proceedings.
Recent legal maneuvers suggest that the SEC is considering an appeal against the Programmatic Sales finding.
However, the SEC must navigate the legal landscape and wait for the Ripple case’s resolution before pursuing such an appeal. The court’s decision to deny the SEC’s interlocutory appeal has further influenced the regulatory body’s decisions, leading to the withdrawal of charges against Larsen and Garlinghouse.
Hinman Documents and Ripple’s Counterattack
The importance of the Hinman documents comes to the forefront as Ripple’s legal leader, Stuart Alderoty, engages in a counterattack against SEC Chairman Gary Gensler.
This exchange follows Gensler’s recent speech referencing Joseph P. Kennedy, the first SEC chairman, and using his statements to model the agency’s ethical behavior.
In response to Gensler’s speech, Stuart Alderoty, XRP’s legal leader, cited instances of court losses.
“The SEC is losing in court; being criticized by Judges for shady behavior; being rebuked by the Gov’t’s internal auditor; hiding info about meetings with a felon; becoming irrelevant on the international stage. Gensler – admitting no fault – has become the insulate Col. Jessep,” said Stuart Alderoty.
The Hinman documents, specifically mentioned by Alderoty, continue to be a source of contention. It added fuel to the legal battle between Ripple, the SEC, and other crypto exchanges and custodians.
XRP Price Action and Whales’ Strategic Moves
Amid the legal drama, investors closely monitor XRP’s price action, currently at $0.624, with a market cap of $33.55 billion and a circulating supply of 53.72 billion XRP.
Santiment on-chain data reveals a noteworthy spike in Large Transactions and Whale Holdings.
Notably, whales’ holdings have increased to 16.8 billion XRP as of Nov. 18. It indicates a strategic move to capitalize on the lower pricing by acquiring 20 million XRP between Nov. 6 and Nov. 18. This significant purchasing activity among major players may influence retail investors to reconsider their positions, potentially impacting the ongoing market dynamics.