- Ripple lawsuit ruling by Judge Analisa Torres is considered a roadmap for crypto firms as it applies Howey analysis to digital assets.
- Legal expert J W Verret argues that the facts and circumstances of cryptocurrency offers and sales matter under existing securities law.
- XRP price defends $0.60 level, despite wiping out weekly and monthly gains.
The SEC v. Ripple lawsuit offers legal experts a lens to re-examine the application of existing securities law to digital assets like XRP. Judge Torres’ ruling prevented the SEC’s circumvention of existing laws and enabled adaptive regulation, rather than a stifling approach.
Legal expert J W Verret weighed in on the outcome of the SEC v. Ripple lawsuit and observed that the ruling is a roadmap for crypto firms to navigate regulatory pressures.
XRP price defended the $0.60 level, early on Tuesday, despite market wide correction in cryptocurrency prices.
Also read: Pro-XRP attorney slams former SEC Chair, XRP price plummets in market wide crash
Daily Digest Market Movers: Ripple roadmap paves way for crypto regulation
- Legal experts like Law professor J W Verret believe the Ripple lawsuit and Judge Torres’ ruling have paved way for the regulation of cryptocurrencies without stifling innovation.
- Judge Torres’ July 13 ruling offered partial victory to Ripple as it cleared XRP’s status as a non-security. Verret argues that Torres applied the Howey Test from 1946 to XRP and prevented the US financial regulator, Securities and Exchange Commission (SEC) from arguing alternative facts, in a recent report.
- Judge Torres reviewed all individual sales categories and noted that the vast majority of them were blind bid/ask transactions and do not qualify as securities sales.
- The Judge acknowledged affidavits submitted to the court and concluded that XRP is not a security.
- The financial regulator’s failure to show how Ripple’s public communications about XRP could have reached the asset’s buyers proved that the token is not a security and there is no investment contract between XRP buyers and Ripple.
Technical Analysis: XRP price defends $0.60 in recent decline
Bitcoin price wiped out recent gains and retreated below the $42,000 mark on Tuesday. Altcoins followed suit, with XRP wiping out its monthly and weekly gains. The altcoin defended the $0.6000 level and sustained above its 50- and 200-day Exponential Moving Averages (EMA) at $0.6119 and $0.5589, as seen in the chart below.
A daily candlestick close below $0.6000 could validate the bearish thesis and push XRP price lower to $0.5456.
XRP/USDT 1-day chart
As the altcoin sustains above its two long-term EMAs, XRP price is likely to make a recovery to the $0.6820 level, previously seen on December 9.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
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