Is XRP Really A Security? Attorney’s Shocking Revelation Raises Eyebrows
The post Is XRP Really A Security? Attorney’s Shocking Revelation Raises Eyebrows appeared first on Coinpedia Fintech News
In a recent twist to the ongoing discourse around the status of XRP, a reputable attorney and crypto enthusiast, Bill Morgan, has shed new light on why XRP may not meet the criteria for security. The debate was triggered by Jesse Hynes, the founder of Seed Starter.
Hynes opened the conversation with a provocative statement suggesting that early sales of XRP would likely be considered violations of securities laws. He opined that this would lay a groundwork that the SEC could leverage to pursue numerous other companies. The crux of his argument rested on the hypothesis that if something is sold for fundraising, it automatically becomes an investment contract.
A Different Of Opinion
Morgan responded, offering an alternative perspective. He supported Hynes’ distinction between early and later sales but went further to propose a scenario where digital assets could transition from being securities to non-securities.
He argued that Judge Torres could potentially conclude that sales to On-Demand Liquidity (ODL) customers are not investment contracts due to the absence of an expectation of profit and the immediate use of XRP. This would provide the needed clarity to unequivocally establish that XRP is not a security.
How Will The Situation Play Out?
Hynes voiced his concern that Judge Torres might sidestep the issue entirely, focusing only on Ripple sales and leaving the asset itself and secondary market sales in a state of ambiguity.
Learn More: XRP Defies Crypto Decline as Ripple Seems to Have Upper Hand in SEC Case – Coinpedia Fintech News
Morgan contested this, highlighting that the judge could not overlook ODL sales as some fell within the XRP sales period alleged in the complaint. He further referenced Judge Torres’ recent decision on the sealing issue, suggesting her awareness of the difference between programmatic and institutional sales of XRP and sales of XRP to ODL customers.
In the final round of this exchange, Morgan stated that ODL customer sales could not be classified as Ripple sales unless a significant factual and legal error was made by focusing on the asset rather than the circumstances of the sale.
Renowned Crypto Attorney Makes Shocking Revelation About His Bitcoin (BTC) Investment
In a revelation that surprised many in the crypto community, prominent cryptocurrency attorney and fervent XRP advocate, John Deaton, took to social media to discuss his personal digital assets portfolio.
In a quote tweet of his picture at the XRP Las Vegas 2023 event, Deaton candidly disclosed the heavyweight of his digital assets investments – Bitcoin (BTC). This declaration is quite surprising, given Deaton’s public advocacy for XRP.
Diversified Crypto Portfolio: A Prudent Path
Deaton’s cheeky tweet reads:
“I have standing to make this comment b/c my BTC investment significantly outweighs my XRP investment (my XRP family overlooks this and forgives me).”
His statements brought a dose of humor, demonstrating the broad-minded approach he and the XRP community maintain despite their substantial support for the token. The lawyer was not hesitant to praise the XRP community, labeling them as “the brightest, most knowledgeable, and most passionate of all crypto communities.” It is this diversification in his crypto portfolio that emphasizes the versatility of Deaton’s investment strategy and his conviction in the crypto industry’s potential.
XRP’s Market Outlook: A Dance With the Bulls?
In the meantime, the XRP market has been stirring. Between May 16 and 19, XRP saw a rally of 13% but faced resistance at $0.469. After surmounting the 20-day EMA ($0.45) on May 18, a resurgence of bullish momentum seems to be in play, reducing selling pressure, as indicated by the flattening 20-day EMA and the RSI in positive territory.
However, a formidable resistance zone lies ahead, sandwiched between the downtrend line and the 50-day SMA, which is $0.48. A successful breach could catapult XRP’s price toward $0.54. Conversely, if the price recoils from its current level, the bearish influence might assert itself, potentially stagnating the price between the 50-day SMA and $0.40.
XRP was worth $0.468 at the time of writing this article.
Is the SEC’s Regulation of Crypto Unlawful? US Chamber of Commerce Delivers Shocking Verdict!
In a dramatic turn of events, the United States Chamber of Commerce, the world’s most prominent business organization, has publicly backed cryptocurrency exchange Coinbase in its ongoing legal wrangle against the Securities and Exchange Commission (SEC). The Chamber has criticized the SEC for what it calls a “haphazard, enforcement-based approach” to cryptocurrency regulation.
Importantly, this is the U.S. Chamber of Commerce, not the Chamber of Digital Commerce, signaling that support for the crypto industry is gaining ground in traditional business sectors.
The Power of the Amicus Brief
On May 9, the Chamber of Commerce made its stance known through an amicus brief filed with the U.S. Court of Appeals. It accused the SEC of deliberately creating a volatile and uncertain regulatory environment for cryptocurrency companies operating within the U.S.
The term “amicus brief,” or “friend of the court,” refers to advice or information offered by third parties not directly involved in the court case but who have a strong interest in the subject matter.
“Nobody Knows for Certain Which Digital Assets Are ‘Securities”
The Chamber’s brief begins by highlighting the fundamental issue plaguing the digital asset industry – the lack of regulatory certainty. The brief states, “As it stands today, nobody knows for certain which digital assets, if any, are ‘securities’ under federal law.” This ambiguity is causing widespread confusion and is delaying growth and innovation in the U.S. digital asset space.
The Chamber’s Arguments
James A Murphy, Lawyer & Founder of Metalawman, highlighted the three main arguments put forth by the Chamber in his tweet: “Regulatory uncertainty is killing innovation in the U.S., the SEC is destabilizing the digital assets regulatory environment, and the SEC is violating Constitutional Due Process and Fair Notice rights. The brief bluntly declares, “The SEC’s actions are not just harmful policy; they are unlawful.”
“The Court will give these arguments advanced by the U.S. Chamber of Commerce serious attention… The largest, most influential, business organization in the U.S. has just declared it stands with crypto.” James A Murphy
The Chamber also took the SEC to task for failing to provide clarity on which, if any, of the approximately 20,000 digital assets in existence should be classified as “securities” under federal law. According to the Chamber, this issue has “immense implications” for everyone involved in the booming $1 trillion digital-asset economy.
Implications for the Crypto Industry
The U.S. Chamber of Commerce’s involvement, in this case, is a big deal for the crypto industry. The court is likely to give serious consideration to the arguments put forward by such a prominent organization.
Are clearer guidelines on the horizon? Will this boost innovation and investment in the crypto sector? Only time will tell.
Ripple CTO Reveals SHOCKING Truth About XRP’s $3.84 All-Time High
If you’ve been in the dark about XRP’s true all-time high (ATH) value, you’re not alone!
Ripple CTO David Schwartz has finally provided clarity on the matter, dispelling the long-standing misconception that XRP reached $3.84 on January 4, 2018. According to Schwartz, this figure is inaccurate due to the use of the official Korean won (KRW) exchange rate.
Want to know more about this misleading calculation and its impact on the crypto market? Keep reading to find out.
A Misunderstanding in Calculations
The Ripple CTO took to Twitter to address the issue, stating that the official KRW exchange rate inaccurately reflects the actual value South Koreans could obtain for their currency.
In fact, the value of KRW within South Korea is significantly lower than the value outside the country. Nevertheless, the official exchange rate considered the value outside South Korea, leading to the erroneous XRP price of $3.84.
Related: “Don’t Sell Your XRP Before Ripple v SEC Lawsuit Concludes”, Warns Expert – Coinpedia Fintech News
Ripple’s Expansion in International Markets
In related news, Ripple’s new Quick Guide confirms that XRP on-demand liquidity (ODL) payments are now available in India. The guide also highlights the availability of blockchain technology companies’ payment solutions in complex corridors, such as Brazil, Mexico, India, and Southeast Asia.
Ripple has consistently aimed to provide optimal solutions for international financial transactions, leveraging its RippleNet blockchain network to offer fast, secure, and cost-effective ways to transfer finances globally.
Despite Ripple’s ongoing legal battle with the US Securities and Exchange Commission (SEC), the company remains a prominent player in the sector.
XRP Price Analysis
XRP’s price has experienced some turbulence recently, with bulls defending the 50-day SMA ($0.45) on April 22 and attempting to push the cryptocurrency above the 20-day EMA ($0.48) on April 24.
However, the long wick on the candlestick indicates that bears are active at higher levels. With the downsloping 20-day EMA and RSI in negative territory, bears currently have the upper hand.
If the 50-day SMA fails, XRP could plummet to $0.43 – a critical level, as a further drop could lead to a decline to $0.36. To avoid this, bulls must quickly push the price back above the 20-day EMA, potentially leading to a rally to the resistance line where bears may mount a strong defense. If overcome, the pair may rally to $0.56.
As of press time, XRP is worth $0.45.
Also Read: Ripple Price Prediction 2023, 2024, 2025: Will XRP Price Reach $1 By The End Of 2023?
Avorak AI Trade Algo Provides Shocking Apecoin Price Prediction This Summer
AI trading tools have become increasingly popular among crypto traders and investors. The Avorak Trade bot recently made astonishing Apecoin price predictions while still in its development phase. This has sparked interest in the crypto community, with more investors joining its ICO event.
Apecoin news
ApeCoin (APE) news recently made headlines after soaring an incredible 2,000% on Korea’s largest exchange, Upbit. While there is no clear reason for APE’s sudden rise on the exchange, several analysts suggest that this might be because Korean crypto enthusiasts were pumping up Apecoin (APE) amid the exchange suspending deposits and withdrawals of ETH. There was a greater trading volume of the APE/BTC pair in Upbit, so much so that Apecoin’s price on Upbit was significantly higher than other exchanges. This even led to some price aggregators flagging Upbit’s APE pricing as an outlier. However, the suspension of transactions with ERC-20 tokens ahead of the Shanghai hard fork made the arbitrage of this currency impossible.
Apecoin price prediction
Apecoin (APE) has had a notable decline in 2023. Despite differences in exact price predictions, many analysts agree that APE might have a slight price surge in 2023. The effects of the recent news of Upbit and Apecoin (APE) are yet to take hold, and it remains to be seen how APE’s value will be affected. However, with the recent rise in AI trading, investors and traders can stay ahead of the curve with bots that can process massive amounts of data and identify patterns and trends much faster than humans, allowing them to make predictions that were previously impossible.
Avorak Trade: The best AI trading bot?
The Avorak Trade bot is one of Avorak’s AI solutions. The Avorak AI platform is built on the Binance Smart Chain (BSC) and offers users access to a comprehensive set of advanced AI solutions with its AVRK token.
The Avorak Trade bot can help traders make sense of the unusual pricing behaviour of APE and other cryptocurrencies in similar situations.y analyzing large amounts of data and identifying patterns, the AI trading bot can detect potential pricing and trading volume anomalies. This can help traders make more informed decisions about buying and selling cryptocurrencies and avoid losses due to sudden price drops or market crashes. Additionally, the Avorak AI trading bot can also execute trades automatically based on pre-determined strategies, which can help traders take advantage of market opportunities quickly and efficiently.
Avorak AI includes first-to-market features in all of its AI solutions. The Avorak Trade bot, for example, doesn’t require code inputs by its users. Avorak is working on a simple command line input that can be programmed using a standard script. The AI trading bot can predict future prices of different assets and generate large sets of indicators, including services like TradingView to provide visuals. Avorak’s AI trading bot can work on different exchanges and learn from its user’s preferences, strategies, and overall market movements to provide the best possible trades.
The AVRK token is selling at $0.180 with a 7% bonus on top in phase 4 of the ICO. Avorak AI has been a trending topic in the crypto community since its initial coin offering (ICO) started last month. And crypto watchers, such as The House of Crypto, are still discussing the benefits of the Avorak AI project and its ICO.
Conclusion
It’s always a good idea to combine AI tools with your human intuition and analysis for the best possible trading outcomes. However, you don’t have to be an expert trader to succeed with Avorak Trade, as it allows you to enhance your trading capabilities with a secure, easy-to-use, and fun AI-powered trading tool.
To get more information on the Avorak AI project:
Website: https://avorak.ai
Buy AVRK: https://invest.avorak.ai/register
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Ripple Vs SEC: Lawyer Reveals Shocking Details From Judge’s Ruling on Testimony Admissibility
A securities law expert has shared key insights into the recent ruling by the presiding judge on the admissibility of expert testimony in the ongoing legal dispute between Ripple Labs Inc and the US Securities and Exchange Commission (SEC).
Judge’s Credibility Spotlighted
According to the Twitter user @MetaLawman, who claims to have handled a number of securities cases in the Southern District of New York, the judge has an excellent grasp of XRP and the technology that underpins it. He praised the judge’s “excellent command of the legal issues, claims, and defenses in the case.”
The law veteran believes that the judge’s rulings on admissibility are legally sound and that they are unlikely to be disturbed on appeal. However, given the high stakes of the case, it is expected that the decision will be appealed regardless of the outcome.
The judge sustained Ripple’s objection to expert testimony that the SEC wanted to offer about the intentions of XRP purchasers. This is a setback for the SEC because the reasonable expectations of purchasers are a component of the Howey test for defining an investment contract.
SEC’s Objections Overruled
On the other hand, the judge overruled the SEC’s objections to expert testimony that XRP is not treated as a security in the IRS code, that it should not be treated as a security under Generally Accepted Accounting Principles (GAAP), and that it has “commercial utility” in several use cases. These concepts are simple and easily understood by jurors.
According to the law expert, these rulings were a net positive for Ripple and XRP holders. However, he acknowledged that it doesn’t necessarily mean that Ripple will win the case on summary judgment.
Summary Judgment Win for SEC Unlikely
Despite this, the expert believes that the judge’s rulings make a summary judgment win for the SEC unlikely, given the extensive legal analysis of claims and defenses that went into these rulings.
Brad Garlinghouse, CEO of Ripple, took a swipe at the SEC, reacting to recent setbacks the agency has taken since Monday. The SEC has suffered three setbacks in court this week, including the Ripple case.
Garlinghouse tweeted, “It’s only Tuesday, but shaping up to be a not-so-great week for the SEC (this ruling, Voyager, Grayscale).” He was referring to recent developments that have gone against the SEC, including the recent ruling in the Ripple case.
As the legal battle between Ripple and the SEC continues, experts are closely analyzing every development in the case. The recent ruling on the admissibility of expert testimony is seen as a net positive for Ripple, but the outcome of the case is far from certain. The judge’s extensive legal analysis of claims and defenses suggests that a summary judgment decision may be imminent.
XRP Lawyer Exposes SEC’s Crypto Custodian Shake Up – Reveals Shocking Hidden Agenda!
On February 15, the United States Securities and Exchange Commission announced proposed rule changes to enhance protections of customer assets managed by registered investment advisers. According to the proposed rules, investment advisers are expected not to inappropriately use, lose, or abuse investors’ assets.
The SEC responded to the FTX and Alameda collapse that lost over $8 billion of investors’ capital. According to the SEC, the rule change is to ensure client assets are appropriately segregated and held in accounts to protect the assets in the event of a qualified custodian bankruptcy.
As a result, the SEC wants to have surprise audits on investment advisors by independent public accountants to verify client assets.
Effect of SEC Proposed Crypto Custody Rules
With the new proposed rules, market analysts have indicated that the SEC intends to help big players get a significant industry share. Moreover, the Biden administration signed a crypto executive order last year to ensure United States fintech companies have a competitive edge in the global markets.
Already licensed custodians in the United States, including Coinbase and Gemini, are expected to benefit from the rule change. Traditional banks are expected to catch up as they contend to get crypto custodian licenses.
The proposed SEC custodian rule change will severely affect crypto exchanges without a banking license. This is evident with the hit on Kraken for issuing unregistered securities through its staking program.
The change is, however, not welcomed by all who think it is terrible for small players in the market.
“If the SEC changed the rules so only qualified custodians can hold crypto for others, then it sets up a new gatekeeping system where the only custody solution is regulated banks,” said Maya Zehavi, a cryptocurrency angel investor.
Terrausd (UST) Under Fire as SEC Uncovers Shocking Revelation of Market Manipulation
TerraUSD (UST) is a cryptocurrency that is supposed to track the value of the US dollar, but it has no cash backing. It uses a unique dual token system praised as an engineering marvel in the blockchain industry. However, recent revelations have shown that the stablecoin is not as reliable as previously thought.
Stricter Standards and Harsher Penalties by SEC
The Securities and Exchange Commission (SEC) has filed a complaint claiming that UST was propped up by a third party in May 2021 to restore its $1 value. The third-party, allegedly Jump Trading, committed to buying large amounts of UST. Terraform Labs, the creators of UST, did not use the software algorithm that claimed to back the stablecoin but instead relied on ‘Jump Trading’ to maintain its value.
The SEC has not filed any charges against Jump Trading as of this writing. However, Terraform Labs promised to repay Jump Trading with LUNA tokens in exchange for buying more than 62 million UST. The trading company reportedly purchased tokens at a low LUNC price to help maintain UST’s value.
About a year later, when the stablecoin lost its link to the US dollar and investors in UST and its sister altcoin LUNA lost money, it became clear that the algorithm behind UST wasn’t very good. The SEC says that Terraform Labs lied to the public about UST’s value when it said that its algorithm had re-pegged the stablecoin to the dollar.
Why are stablecoins so essential to the world of cryptocurrency?
Stablecoins don’t fluctuate like Bitcoin and Ethereum. Its pricing stability makes them ideal for daily transactions. Decentralized finance (DeFi) uses stablecoins for collateral, trading, and transaction fees.
Manipulating stablecoin values can generate price volatility and forced liquidations, tarnishing the crypto ecosystem. The cryptocurrency market relies on stablecoin pricing.
The impact on the crypto industry
The SEC’s complaint exposed the once-celebrated TerraUSD (UST) stablecoin’s weaknesses, which alleged that Terraform Labs and Jump Trading manipulated its value to maintain its value at its $1 peg. This incident has highlighted the need for transparency and accountability in the cryptocurrency industry, and regulators may impose stricter regulations on stablecoins to protect investors.
BlockFi Exposed: Leaked Financials Reveal Shocking $1.2 Billion FTX Exposure
BlockFi, a fallen cryptocurrency lending, and borrowing platform have reportedly posted uncensored financials revealing a $1.2 billion exposure to the FTX exchange and Alameda Research. BlockFi has $415.9 million in assets linked to the FTX exchange and $831.3 million in loans to Alameda.
The M3 Partners, advisor to the creditor committee admitted that they accidentally posted the uncensored version. A filing from November 24th showed that the creditor committee objects to BlocFI paying key employees $12.3 million in retention payments despite their limited operations and assets. The filing also contained ‘trade secrets, confidential research, development, and commercial information.
What happened to BlockFi?
BlockFi filed for Chapter 11 Bankruptcy on November 28th following the FTX’s collapse due to financial troubles. On the same day, BlockFi filed a lawsuit against Emergent Fidelity Technologies, a holding company owned by Sam Bankman Fried. The lawsuit aimed at getting back collateral that the company had pledged to pay on November 9th, including shares in Online brokerage Robinhood.
During the first hearing of bankruptcy proceedings on 29th November 2022, the company’s lawyer stated that they had $355 million in assets tied to the FTX exchange and $680 million in loans to Alameda. But as the value of bitcoin has increased now, the value of these assets has increased.
The impact on the crypto industry
The new revelation of BlockFi’s exposure to FTX and Alameda has raised concerns among experts and investors. The crypto industry is so volatile and unpredictable. Regulators are of the opinion that the crypto industry is not mature enough to deal with the problems at this scale. They are now making the laws and regulations stricter so that innocent investors may not become prey to fraudulent activities in the system.
The public still has got belief in the judiciary system of the U.S. and is hoping that they will always work in the best interest of the public. The value of Bitcoin is still gaining as people see value in cryptocurrency. But we advise you to do your own research before any major investment in the crypto industry.
Jack Dorsey Reacts on FTX Saga! Reveals Shocking Truth About Sam Bankman-Fried
Former FTX CEO Sam Bankman-Fried has received a significant share of criticism following the sudden collapse of the FTT token and its subsidiaries. With a congressional hearing on FTX collapse slated for next month, Bitcoin maximalists have taken to the social media stages to advocate for its prowess.
Jack Dorsey – a Bitcoin supporter and advocate – has expressed his disapproval of SBF and FTX’s approach to the digital market. While reiterating the old crypto slang ‘trust no one, ‘ Dorsey admitted that SBF approached him a few days before the FTX meltdown.
However, Dorsey indicated that he reported the text messages as junk to the network provider and Apple team. As such, the conversation did not continue from there, per the public report.
According to a report by Reuters, SBF spent the night before filing for chapter 11 bankruptcy calling deep-pocketed investors to bail out FTX. Among the listed investors requested to cough over $7 billion include Sequoia Capital, Apollo Global Management Inc, and TPG Inc.
Nonetheless, the investors declined SBF’s request, citing gross anomalies in the company’s balance sheet. Moreover, FTX was doing ‘well’ per the public quarterly earnings report until the second quarter of 2022, when the company recorded a net loss of over $161 million.
While SBF, FTX, and Alameda continue to hide behind men in suits through the Delaware court proceedings, an estimated 1 million customers and investors are counting significant losses. Moreover, SBF reportedly used $10 billion in customer funds to prop up its trading business.
While his operations remain unclear, it is reported that SBF used an estimated $40 million to sponsor the 2022 midterm elections in the United States.
Bigger Picture on FTX Meltdown
The FTX meltdown has been a blessing and curse to the cryptocurrency market simultaneously. For instance, rival companies Coinbase Global and Binance crypto exchanges have come together via Trust Wallet to enable safe and fast adoption of Web3 technology.
On the other side, confidence in the crypto market has been severely shaken, despite an ongoing investigation by the U.S. Department of Justice, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).
Meanwhile, bearish sentiments have sustained in the crypto market, led by Bitcoin price in the past two weeks. According to our latest crypto price oracles, Bitcoin price is down approximately 1.3 percent in the past 24 hours to trade around $16,500.
Bitcoin Price Analysis – Technicals Reveal A Shocking Trend
Recently, Bitcoin (BTC) slipped below its 20-day MA and has been struggling to hold onto the $19,000 stable mark as well. Hence, the bearish movement seems very likely as the momentum indicators are also pointing to added negative pressure.
A popular crypto strategist and trader, Kaleo, has put forward a theory saying Bitcoin (BTC) is prepping for a rally that may shrug away many traders towards the sidelines.
It is very common for traders to look at the inverted chart of an asset to check on their bias from a different perspective. Similarly, Kaleo informs his 535,200 Twitter followers that he’s been doing the same for Bitcoin.
According to Kaleo’s assessment, a new Bitcoin trend is making its way as the leading crypto asset is gearing up for a massive move up.
Kaleo mentioned, “I’m seeing more 2018 bear market fractal comparisons being used for this range, and I’m really not a fan of the idea at all. In my opinion, we’ve already seen that major breakdown. We’re in the accumulation phase. The markup will catch everyone off guard.”
The analyst’s chart hints that Bitcoin is setting the pace for a rally that can propel BTC to around $40,000, which is more than a 100% surge from the current prices.
The crypto strategist is also noting the performance of the Grayscale Bitcoin Trust (GBTC), a financial instrument designed for institutional investors to gain exposure to Bitcoin without holding the underlying asset.
As per his analysis, GBTC’s recent price action is a close copy of its performance during the latter stages of the 2018 bear market. This might indicate that the asset is bottoming out and preparing for a recovery rally.
“Here’s another high timeframe fractal on the GBTC chart to support my bullish bias,” Kaleo says.
Kaleo predicts a Bitcoin rally to $20,000 for the short term. He says, “squeeze it back above $20,000.”
Can Bitcoin Surpass $19,000?
The disappointing trading pattern with respect to crypto assets is partly due to the general risk-off mood that has hit stocks and other risk assets since mid-August. With investors betting on a more hawkish Federal Reserve, a softer-than-expected CPI reading could spark a relief rally for Bitcoin and other crypto assets too. If this doesn’t happen, it will become difficult for Bitcoin to breach the current range of $19,000 anytime soon.