Yerevan (CoinChapter.com) – The US Securities and Exchange Commission (SEC) has to disclose the internal documentation containing references to Bitcoin and/or Ethereum to the court, according to the Federal Judge ruling after the closed hearing on May 6. The ruling affects the future of XRP, which is the native token of Ripple Labs, the startup on the receiving end of the secure SEC’s accusations.
A Step Back…
The SEC filed a lawsuit against Ripple Labs back in Dec 2020. The agency accused the latter of illegally raising $1.3 billion by selling unregistered securities in the form of XRP tokens, thus violating investor protection laws. The SEC built the prosecution on the premise of considering XRP securities. It singled out Ripple’s token from the line of other cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH).
The San Francisco startup, in return, accused the SEC of extreme bias against them. Ripple filed a motion for the agency to disclose their internal documentation concerning the alpha cryptocurrencies, as well as XRP.
Results Of The Closed Hearing
The closed hearing on May 6 resulted in Ripple’s favor, as the judge ruled for the SEC to disclose documents such as “division reports, final reports of internal working groups, or formal position papers submitted to the Commissioners”. Should the mentioned documents reveal SEC’s official position towards BTC and ETH as “cryptocurrencies”, rather than “securities”, the law enforcement agency might not have a leg to stand on regarding the lawsuit.
Earlier, Federal Judge Sarah Netburn granted the defendant’s motion only partially, making SEC disclose relevant documents involving third parties only. Excluding the internal communications altogether.
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.ruled judge Netburn.
The closed hearing, however, put more pressure on SEC. James K Filan, a lawyer actively involved in the case, tweeted about the latest Ripple victory. He also provided the details of judge Netburn’s ruling.
The Ruling Affects On XRP Price
Lengthy courtroom proceedings have a great effect on XRP price. It locks significant gains, whenever the judge rules in Ripple’s favor. If past is any indication, the same will possibly happen in the upcoming trading sessions. Ripple supporters are hopeful the lawsuit is approaching its close, and will eventually backfire on SEC.
As of the London session on Saturday, XRP is still consolidating within the symmetrical triangle pattern. The technical setup involves two lines with a similar slope. The upper descending resistance line prevents sharp breakouts. The lower ascending resistance line saves the token from breakdowns.
The consolidation within the symmetrical triangle indicates a future breakout either with a bullish or a bearish sentiment. Given the court ruling in the startup’s favor and the altcoin season ahead, the bullish predictions have merit.