Ripple vs SEC: Ripple Requests Extension in Legal Battle with SEC; January 19th Set as New Deadline
The SEC’s relentless pursuit of Ripple has taken center stage this week, attracting the attention of investors and industry enthusiasts. In its latest court filings, the SEC has revealed its determination to investigate Ripple’s financial affairs, particularly focusing on post-complaint contracts governing institutional sales. Legal expert James K. Filan believes that this move highlights the SEC’s keen interest in unraveling the complexities of Ripple’s financial web.
Ripple has filed a Motion for Extension of Time, requesting an additional 2 days to respond to the SEC’s Motion to Compel. The SEC, on the other hand, has filed a motion urging the court to force Ripple to publish its financial statements for 2022-2023 and disclose the post-complaint contracts governing Institutional Sales. The SEC argues that these contracts are necessary to determine whether Ripple violated the Section 5 Securities Act of 1933 and should face injunctions and monetary penalties. Ripple has requested an extension until January 19 to address the SEC’s motion comprehensively.
Criticism has been mounting against the SEC’s aggressive stance, with Ripple’s chief legal officer, Stuart Alderoty, calling the SEC an “out of control regulator.” Many in the crypto space view the SEC’s approach to regulation as heavy-handed and stifling for innovation.
Meanwhile, there is speculation about the possibility of XRP-spot ETFs. Valkyrie Chief Investment Officer Steve McClurg sees potential for Ripple in the crypto-spot ETF market, citing Grayscale’s inclusion of Ripple in one of its publicly traded trusts. Regulatory clarity through ETFs becomes even more crucial for XRP as the SEC’s grip tightens.
Market analysis shows a mixed picture for XRP. Its position below the 50-day EMA suggests short-term bearishness, but being above the 200-day EMA offers long-term hope. The future updates from the SEC and U.S. congressional scrutiny add to market uncertainty. If XRP breaks below $0.5835, it might trigger the 200-day EMA, and the RSI indicates that XRP could enter oversold territory.
Overall, the SEC’s legal battle with Ripple and the expectation of regulatory clarity through ETFs create volatility in the XRP market. Investors need to be cautious as the outcome of the SEC’s case and its impact on the crypto market remain unpredictable.