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

Digital Assets

GK8 now allows clients to control their digital assets as they would their fiat

“As the institutional market is increasingly turning to self custody, our policy engine empowers them to automate transactions, approvals, and even crucial workflows, while providing the highest degree of security, consistency, governance and control.”

Digital Assets

Retail CBDCs in the UK: “Welcomed” by CryptoUK and R3, but “Dystopian” for ETC Group

“At this stage, we judge it likely that the digital pound will be needed in the future. It is too early to decide whether to introduce the digital pound, but we are convinced preparatory work is justified”, said the BoE and HM Treasury.

Institutional FX

Centroid taps Iress API to provide retail brokers with real-time market data

“It has always been a challenge to have an efficient, elegant solution for market data and order execution for retail brokers, but with Iress we have found absolutely the right partner to add to our client offering.”

Digital Assets

Ramp launches FCA-approved off-ramp product, onboards Brave, Trust Wallet, Ledger

“To obtain and maintain our FCA registration, we must meet and operate within their strict anti-money laundering and counter-terrorist financing standards. This is a huge achievement for us, as compliance is a cornerstone of our business and what we stand for.”

Institutional FX

State Street launches FIX API for Fund Connect ETF platform

“Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”

Industry News

HollyWally opens office in Portugal to bring B2B2C wallet-as-a-service platform to Europe

“We looked at a number of centers for startups throughout Europe and were attracted straight away to Lisbon. There is great Government support and enthusiasm for startups, it’s well positioned between our Asian and US offices, it’s a cost-effective city in which to base a fintech and it’s a beautiful place.”

Retail FX

Eightcap integrates Acuity’s economic calendar for trade ideas on MT4 or MT5

“By incorporating Acuity’s cutting-edge AI technology into our platform, we are able to offer our clients a powerful new tool that will help them stay ahead of the markets. We are committed to providing an extensive range of tools and educational resources that will enhance our clients’ trading experience and allow them to trade smarter.”

Digital Assets

Fuse Network powers Web3 economy, payments with ‘Fuse 2.0’

Web3 payments revolution startup Fuse Network announced the release of ‘Fuse 2.0.’ alongside a new roadmap, whitepaper, and fresh branding aimed at bringing crypto payments to the mainstream global economy.

Inside View

Private Equity Renaissance

Recent years have seen a resurgence in the concept of trading physical equities, with a slew of new arrivals joining the market for what is arguably one of the oldest forms of investing. But what has been the driving force behind this change in momentum?