XRP holders have scored a new victory. A lot has passed since December 2020, when the Securities and Exchange Commission (SEC) filed its case against Ripple Labs. Things started in the regulator’s favor, but with every new development, the situation seems to be changing.
According to a document published by the United States District Court of the Southern District of New York, represented by judge Sarah Netburn, the Commission was denied access to Ripple’s legal memos.
With this motion, the SEC would have ordered the payment company to produce communications in every format on “legal advice” seek or receive on whether XRP sales were subject to federal securities laws.
If granted, the motion would have in conflict with Ripple’s Attorney-Client privilege. The judge concluded that the company did not waive this right. However, the judge gave the SEC room to refile its motion. Per the document:
If, at some later date, Ripple raises its good faith beliefs or relies upon its privileged communications in support of its fair notice defense, the Plaintiff may renew its application to the Court.
Jeremy Hogan, a partner at legal firm Hogan & Hogan, has followed this case closely. The legal expert said the following on judge Netburn’s ruling:
Very important because the Judge states Ripple’s subjective beliefs re XRP are NOT relevant to the Fair Notice defense, blocking the road the SEC wanted to use to fight the Defense.
On the other hand, lawyer John E. Deaton, one of the community leaders of an initiative for XRP investors to gain more relevance in the action, believes the SEC always has little chance of winning this motion.
He believes that there is not much pressure for the regulator to return to negotiating table, but “it’s another public loss for the SEC”.
How The Legal Battle Has Impacted XRP’s Price
With losses in higher timeframes, XRP has positively reacted to recent developments. In the daily and 1-hour charts, the cryptocurrency records a 5.6% and 0.1% profit, respectively. At the time of writing, it trades at $0.89.
The market still seems correlated with Bitcoin’s price performance. The number one cryptocurrency by market cap has seen one of its worst months in the past 5 years. In the daily chart, Bitcoin is close to turning $35,000 from resistance to support.
If it succeeds, XRP and other altcoins could have a respite from the bears and reclaim some of their lost territories. In the coming weeks, BTC’s price will have a lot of influence on the entire market. Trader Credible Crypto claims that XRP could form a short squeeze and liquidate many short positions on exchange Bitfinex.
I mean. Idk what else to say but this looks ripe for a short squeeze lol. $XRP pic.twitter.com/BZtrBQUt93
— Credible Crypto (@CredibleCrypto) May 28, 2021
The trades remain bullish despite the current price action. He claimed that BTC’s price could have bottomed out and might be on a recovery trajectory. This could positively impact XRP, as mentioned. Credible Crypto said:
I know the structure there at the bottom LOOKS bear flag-y but I also see a completed 5-3-5 (ABC) to the downside which would imply the bottom is in. Would not be surprised to see this ‘bear flag’ break to the upside. BTC.