The SEC filing is an overreaching legal theory, says Ripple while pushing against the lawsuit


  • Ripple calls out the SEC for picking winners and losers in the XRP battles for regulatory clarity.
  • Larsen and Garlinghouse attorney's express intention to file a motion dismissal.
  • XRP's on-chain metrics remain bullish despite a weak technical picture.

Ripple is not ready to leave any stoned unturned amid the legal battle to save XRP from the Securities and Exchange Commission (SEC). During a court filing on Tuesday, the cross-border payments company pointed out that the regulator is moving forward with the narrative that XRP is a security token while leaving its peers, Bitcoin and Ethereum, untouched.

The SEC is deciding the winners and losers with the XRP fight

The SEC filed a lawsuit against Ripple Labs Inc., the company behind the issuance of XRP and its top executives, in December. The SEC alleges that the blockchain start-up, the co-founder Christian Larsen and the Chief Executive Officer Bradley Garlinghouse, duped investors into buying $1 billion of issued virtual tokens without duly being registered.

According to Ripple Labs, the SEC has no business regulating XRP because it a medium of exchange.  The company stresses that XRP is utilized in international and domestic transactions; thus, it is not a security. Ripple reckoned that:

The SEC's filing, based on an overreaching legal theory, amounts to picking virtual currency winners and losers as the SEC has exempted Bitcoin and Ether from similar regulation.

On Friday, a Bloomberg report said that the attorneys for Larsen and Garlinghouse had separately written to United States District Judge Analisa Torres detailing their anticipated motion to dismiss the regulators revise the complaint.

Ripple's on-chain metrics scream 'buy'

XRP may have a shaky technical picture, especially with the stubborn resistance at $0.45, but the token's on-chain metrics reveal the possibility of a massive recovery taking effect. For instance, the MVRV recently dropped into the buy zone, suggesting that it was time to go all-in on XRP.

The MVRV tracks "average profit or loss of those holding XRP tokens which moved in the last 30 days." The model is then adjusted to reflect the price when each of the XRP tokens last moved. A high MVRV highlights that most of the holders in profit are likely to sell.

On the other hand, a small ratio, or below zero, suggests that most holders are at a loss and are not likely to sell. Meanwhile, the current MVRV ratio is below zero but has started to rise, suggesting that XRP could see an influx of buyers as prices grow appreciably.

Ripple MVRV

Ripple MVRV

The bullish outlook has been echoed by the holder distribution chart, which vividly shows XRP whales filling their bags massively. Addresses containing between 1 million and 10 million XRP recently bottomed out at 1,131 on February 21. A recovery ensued, and these addresses have grown to 1,163 at the time of writing. If the whales continue with the buying spree, the tailwind on XRP will soar, pushing the token to higher levels.

XRP holder distribution

Ripple holder distribution

The lawsuit against Ripple has been the main factor behind its unappealing performance in the ongoing bull run. Most investors are skeptical of the outcome of the lawsuit and prefer to stay away from XRP. Therefore, the token may continue to struggle with its recovery until a clear XRP's future emergence.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin adoption accelerates as coiling prices hint at explosive rally

Bitcoin price faces a stiff resistance wall that has prevented weak bullish momentum from passing through. As a result, a short-lived retracement has caused a majority of the market to follow suit despite BTC’s raging adoption and interest from institutions over the past week.

More Bitcoin News

VeChain upswing thwarted again as sell signals multiply

VeChain price shows an ambiguous outlook as it has set up a textbook uptrend with a series of higher highs and higher lows, but technical indicators hint at a downtrend.

More VeChain News

Judge reaffirms order SEC must produce documents on Bitcoin, Ether and XRP in Ripple case

Judge Sarah Netburn has restated that the Securities and Exchange Commission (SEC) must produce documents related to Bitcoin, Ether, and XRP amid the ongoing legal battle with Ripple Labs.

More Ripple News

Polkadot Price Prediction: DOT hints at minor retracement before resuming its rally

Polkadot price shows a slowdown in its bullish momentum that has resulted in sellers taking over. Now, a minor retracement could push DOT into a significant support barrier.

More Polkadot News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP