Yerevan (CoinChapter.com) — The US Securities Exchange Commission denied that they have ever equated XRP, a token it deems as securities, with its top rivals Bitcoin and Ethereum just as its December 2020 lawsuit against XRP’s issuer Ripple Labs continues in the US court.
The US financial regulatory agency had accused Ripple Labs of illegally raising $1.3 billion by selling unregistered securities in the form of XRP tokens. In its defense, the Ripple team noted that XRP is a utility token. The San Francisco blockchain payment startup also accused the SEC of extreme bias against them, noting that the securities regulator does not look at XRP-like digital assets like Bitcoin and Ethereum from the same lens.
Ripple pushed the SEC to reveal their internal documentation, claiming it contains the definition “currency” while referring to Bitcoin and Ethereum. But in a recent court hearing, the US agency claimed that no such document exists. Federal Judge Netburn, presiding over the case, made an ambiguous ruling.
“I am going to grant, in large part, the defendant’s motion. I think that the discovery related to Bitcoin and Ether is relevant. […] Going to authorize discovery both as to exclusively Bitcoin or Ether communications as well as XRP communications between the SEC and third parties, and by that, I include all market participants and the other government agencies. I am not including SEC-to-SEC internal communications in that ruling.she said.
Attorney Jeremy Hogan tweeted after assessing Judge Netburn’s remarks, calling it a very “nuanced” ruling.
“The SEC is trying to say the Judge said “none,” Mr. Hogan commented. “And the Ripple is saying that she said, “mostly all.” The truth is, she said, “some.” I think she will rule on this soon without oral arguments and smash some heads together (in a polite way).
XRP Stays Choppy
As the blockchain’s token, XRP remains heavily influenced by the outcome of the ongoing SEC vs. Ripple case. The cryptocurrency earlier posted impressive gains after Ripple Labs claimed minor victories in the courtroom, one of them including a rejection of the SEC’s request to access the Ripple CEO Brad Garlinghouse’s financial documents.
During the London session on Wednesday, XRP traded at $1.55. Technically, the cryptocurrency trades within a Symmetrical Triangle range, which, in conjugation with the previous uptrend, eyes bullish continuation in the short-to-medium term.
Many Ripple supporters hope the next hearing on May 6 will put an end to the lengthy lawsuit. As of the moment of writing, the outcome of the court proceedings is not clear. Judge Netburn’s “nuanced” ruling has the potential to affect XRP’s value both ways.