Ripple and SEC looking for an XRP deal?
After a correction yesterday, XRP resumed its recovery, while U.S. blockchain firm Ripple said it failed to reach an agreement with the U.S. Securities and Exchange Commission (SEC), but promised to keep trying.
At the time of writing, XRP is trading at $ 0.31 and is up almost 9% in one day and 35% in a week, reducing its monthly losses to almost 37%. The price also goes up 60% in one year. XRP is also one of the top performing currencies today, as other cryptocurrencies are showing mixed results.
This new appreciation occurs precisely while Ripple admitted that it was unable to make a deal with the SEC, or at least reach some kind of unspecified deal, after the lawsuit issued by the regulator against the company. Ripple CEO Brad Garlinghouse, tweeted on January 7 that,
“I cannot go into details, but we know that we have tried – and we will continue to try [com] the new administration – solve this in a way that the XRP community can continue to innovate, consumers are protected and organized markets are preserved. [. ..] We are on the right side of facts and history and we look forward to our day in court – as well as engaging with the new SEC leadership once appointed. “
As previously reported, the company is putting its hopes on the SEC’s new leadership, which may be more compatible with cryptocurrencies and (specifically) XRP.
Garlinghouse provided answers to a few more burning questions on this topic.
Even with Garlinghouse’s tweets, many still question his answers. Some are questioning whether there was really a deal offered to the SEC in the first place, and if so, what Ripple would have to give up; some are asking why the SEC is going against Garlinghouse and co-founder Christian Larsen personally; some are suggesting that Ripple is working against the deal, as they would have to pay a large fine; and there are those who believe that the CEO topic suggests “they knew they were in trouble, probably for months…”
And others suggested that Garlinghouse didn’t really answer the question of paying for exchanges to list XRP, but that the company is hiding behind its strategically chosen vocabulary.
Meanwhile, a tweet Recent study by Stephen Palley, a partner at the US law firm Anderson Kill, emphasized the importance of an agreement with the SEC. Palley said that believing in a Ripple victory would give a new definition to investment contracts, bonds or cryptocurrencies and that is “delusional”.
“The problem that Ripple is going to face – and why I think they’re basically screwed – is discovery, including contemporary documents and testimonials,” said Palley the day before. “There is no universe in which this will help them in any way.”
How does XRP manage to value this situation? Most exchanges have not removed XRP, and furthermore, “the US is not the whole world” – Ripple said before, and Garlinghouse repeated today, that 95% of XRP is traded outside the USA.