Ripple vs. SEC: Ripple Believes SEC Lawsuit Driven by Potential Payout
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Ripple Labs has filed an opposition against the US Security and Exchange Commission’s appeal for a telephone conference to acquire a protective order, thereby relieving the Commission of any contract to respond to the Requests for Admission (RFA). The blockchain startup contended their RFAs’ importance and accused the watchdog of seeking disgorgement money from contracts it claims are “investment contracts under the Howey test.”
The defendant argued that the plaintiff’s argument is not enough to file for a protective order, claiming that, legally: “the large number of requests to admit is not in itself a basis for a protective order.”
Also, Ripple argued that not only is the number of RFAs proportional to the requirements of the lawsuit but that they operate by the SEC’s litigation theories. The defendant presented the sixth set of RFA to defend its claim that it operates by the SEC’s theories and must not get discarded.
The sixth set of RFA is based on the SEC’s investment contract argument theorizing that every offer, sale, and distribution of XRP by Ripple Labs between December 2013 and December 2020 was the offer, sale, or distribution of an investment contract.
Finally, Ripple accused the plaintiff of acting out of greed. The disgorgement amount is worth a minimum of $1.38 billion.
Key Ripple Levels to Watch — October 8
As the cryptocurrency market prepares to resume its upward rally soon, we could see XRP finally scale the critical $1.1000 barrier. The sixth-largest cryptocurrency currently trades along the upper-end of our ascending channel and within our $1.1000 – $1.0500 pivot area.
A break above the $1.1000 resistance, which coincides with the top of our ascending channel and pivot zone, should spark an aggressive rally towards the $1.2000 level over the coming hours or days. Additionally, we can observe an impending bullish golden cross around the $1.0500 level, which further bolsters our bullish bias.
Meanwhile, our resistance levels are $1.1000, $1.1500, and 1.2000, and our support levels are $1.0500, $1.0000, and $0.9500.
Total Market Capitalization: $2.33 trillion
Ripple Market Capitalization: $50.5 billion
Ripple Dominance: 2.16%
Market Rank: #6
