In a plot twist that has sent shockwaves through the cryptocurrency community, recently uncovered SEC emails have thrown the ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC) into disarray.
The revelation, brought to light by attorney John Deaton, who represents XRP holders, has ignited a fiery debate about the SEC's allegations against Ripple's XRP cryptocurrency. In a cleverly tucked footnote within Ripple's court briefs, doubts are cast on whether XRP truly satisfies the Howey Test, the litmus test used to determine whether an asset can be classified as a security.
Ripple Fails the Howey Test: SEC Staff Email Shows
Attorney Deaton has managed to thrust an overlooked footnote into the spotlight. Hidden within Ripple's opposition and reply briefs, this little nugget suggests that XRP might not check all the boxes required by the Howey Test. For those not versed in the intricacies of legalese, the Howey Test is the holy grail when it comes to determining if an asset falls under the purview of federal securities law.
The question on the minds of many following this revelation is: why would the SEC pursue charges against Ripple's top brass if their own staff saw XRP as a non-security? Adding fuel to the fire, Attorney Deaton points to Exhibit 230 from the SEC emails, which boldly suggests that the likelihood of XRP being classified as a security is about as probable as finding a unicorn sipping tea at the local coffee shop. This piece of evidence seems to contradict the very foundation upon which the SEC built its case against Ripple.
It is yet to be seen how this new revelation will affect the ongoing case or the ruling.
Impressive Growth for Ripple Despite Legal Battle
While the legal battles rage on, Ripple Labs, the masterminds behind the XRP ledger, refuse to be deterred. Despite the regulatory rollercoaster they find themselves on, Ripple's flagship products continue to march forward, leaving a trail of remarkable growth in their wake. A recent report from the esteemed crypto research platform Messari sheds light on the milestones achieved by Ripple and the XRP ledger during the first quarter of 2023.
In Q1 2023, the number of daily active addresses on the XRP ledger surged by an impressive 13.9% compared to the previous quarter. That's over 140,000 fresh faces joining the Ripple network, ready to dive headfirst into the world of XRP. Meanwhile, the number of daily transactions recorded on the XRP ledger also enjoyed a healthy boost, growing by 10.7% during the same period.
The report further revealed that in Q1 2023, the price of XRP experienced a staggering 55.5% surge, going from $0.35 to $0.54. To put it in perspective, XRP outpaced the overall growth of the crypto market by a solid 9.5%. However, as with any rollercoaster ride, there have been dips. Presently, XRP is trading at around $0.46.
XRP Above Critical $0.45 Mark
Speaking of price, XRP appears to be on a recovery trajectory, following a sharp 12% drop between May 6 and 8. The fall came as a result of the Bitcoin congestion issues that rocked the market at the time. That said, XRP has managed to pull itself back above the critical $0.45 support mark as XRP traders await further gains.
The first target for XRP bulls is the $0.50 round figure, which should open the doors to a retest or the yearly high over the coming weeks and months. If the current bullish trajectory persists, a fine MA cross could emerge, cementing a strong move to the $0.55 resistance level.
XRP Statistics Data
XRP Current Price: $0.46
XRP Market Cap: $23.8B
XRP Circulating Supply: 51.8B
XRP Total Supply: 100B
XRP Market Ranking: #6
This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.