XRP volumes above $1b as SEC v. Ripple lawsuit closer to end

Rick Steves

2022 will see the SEC v. Ripple reach a conclusion, whether through settlement or via court ruling.

The XRP market saw daily trading volumes drop gradually as the year 2021 ended, though they kept above the $1 billion mark, according to data from coinmarketcap.com.

Crypto investors and the overall industry have been eyeing the digital asset as they look for answers of what to expect from regulators as the space matures.

XRP lawsuit spans three years: 2020, 2021, 2022

2020 was the year the SEC v. Ripple lawsuit had its official start. Jay Clayton, former SEC Chair, signed the complaint on 22 December 2020. Something that Ripple CEO Brad Garlinghouse commented on days ago on Twitter.

“Of all the shitty things in 2020, this was certainly one to cap the year Rolling on the floor laughing. But what I said then remains (painfully) true today: this is an attack on crypto in the US, not just Ripple.”

2021 was the year both parties pursued their litigation strategies with the fact discovery process showing the plaintiff is pushing the narrative that Ripple marketed and sold XRP as securities contracts.

The defendants – Ripple Labs, Brad Garlinghouse, and Chris Larsen – are more focused on the lack of proper notice from the SEC that XRP could be considered a security.

The many inconsistencies in the SEC’s communications throughout the years have left many market participants wondering which digital assets could be deemed a security.

FinanceFeeds webinar: Expert panel to discuss market data for multi-asset brokerages  

First Telegram, then Ripple, then Ethereum?

Clearly, clarity isn’t one of the SEC’s talents. In 2020, the SEC filed a complaint and won against Telegram (TON) because of an unregistered securities offering via initial coin offering (ICO).

That was two years after ex-SEC William Hinman’s 2018 speech, where he stated that ETH is not a security…although Ethereum had raised funds in 2014 via ICO as well.

As Ripple kept pointing at the agency’s inconsistencies throughout the lawsuit, the SEC has backtracked in regard to any speech made by an official, even when they were publicly commenting on behalf of the regulator.

We still have to wait a while to learn if that move has convinced the Judge, but as the new year starts, the news about what is happening in court is expected to flow on a nearly daily basis.

2022 will see the SEC v. Ripple reach a conclusion, whether through settlement or via court ruling. This will most likely happen this quarter, Q1 2022, and the outcome will set the rules for future encounters with the SEC as the agency shows no signs of ending its regulation-by-enforcement practice.

 

Read this next

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro, Businessempire.fr

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.

Technology

Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

<