XRP

Palau’s Ripple-supported stablecoin pilot achieves positive results

The U.S. dollar-pegged Palau Stablecoin was used by 168 volunteers for $100 of retail purchases in three months.

The first phase of the Palau Stablecoin (PSC) Program has been declared a success by the country’s Ministry of Finance. More work on the United States dollar-pegged national stablecoin is planned, with the goal of introducing the PSC on a national scale, according to a report released on Dec. 7.

The three-month PSC project was carried out with the participation of Ripple and used the XRP Ledger central bank digital currency (CBDC) platform. The Finance Ministry recruited 168 volunteers from among government employees, who were able to spend 100 PSC at participating local retailers. Both the volunteers and retailers responded positively to their experience using the PSC.

Purchases were made using a phone and a QR code or by manually inputting a wallet address. Only the retailers were able to redeem the PSC for U.S. dollars, which is Palau’s legal currency. The PSC was fully collateralized by $20,000 in “a Tier 1 Federal Deposit Insurance Corporation (FDIC) United States bank.”

Read more

Ripple launches liquidity hub for businesses to bridge the crypto liquidity gap

The liquidity hub aims to offer a pool of liquidity to businesses in addition to Ripple’s popular cross-border payments service called on-demand liquidity.

Fintech firm Ripple has launched its liquidity solution for businesses to bridge the gap between crypto and fiat. Ripple liquidity hub was launched on April 13 after a successful pilot last year.

The service operates as a stand-alone solution in addition to Ripple’s popular cross-border payments service called on-demand liquidity (ODL). This makes it a global liquidity network offering its partners access to payout rails worldwide.

The liquidity hub has been developed from an enterprise point of view to offer digital assets from various market makers, including crypto exchanges and over-the-counter trading desks. When an enterprise partner requires liquidity, it can source it from these large pools of deep liquidity, including United States dollars, Bitcoin (BTC), Ether (ETH), Ethereum Classic (ETC), Bitcoin Cash (BCH) and Litecoin (LTC).

Interestingly, the product launch finds no mention of XRP (XRP), the crypto token issued by Ripple. XRP has been central to most liquidity products and services the fintech firm offers, especially cross-border liquidity services. However, XRP was mentioned among digital assets in the company’s pilot phase.

The omission of XRP from its liquidity pairs could be attributed to the company’s ongoing court battle in the U.S. with the Securities and Exchange Commission.

Ripple claimed its liquidity solution would considerably reduce the cost of operations on high-volume transactions. This is done by optimizing cryptocurrency pricing and liquidity across asset pairs.

Related: New Ripple president says her job is to continue to scale amid crypto winter

The liquidity hub eliminates the need to pre-finance capital positions to source liquidity or conduct transactions. The liquidity service reduces complicated multiplatform administration requirements by enabling organizations to access digital assets in a single place. The services also lock in optimum pricing for digital assets to protect companies from market instability and price swings.

Ripple has made a name for itself in the fintech world for offering various liquidity solutions and cross-border remittance services. Its popular ODL solution has onboarded several banks worldwide to provide cheap remittance services with the help of cryptocurrencies.

Magazine: Why join a blockchain gaming guild? Fun, profit and create better games

XRP price rally stalls as SEC vs. Ripple ruling drags on — 25% drop ahead?

XRP nears key breakout, but lackluster volumes may spoil its 30% rally setup.

XRP (XRP) rose 2.1% to $0.52 on April 11, extending its daily gains from $0.50 alongside a broader cryptocurrency market rally, with traders pinning hopes on easing inflation data into April 12.

XRP price: lackluster volumes raise risk of 25% correction

XRP’s upside move brought it closer to breaking out of its prevailing bull pennant range, with a price target of $0.65.

XRP/USD daily candle price chart. Source: Tradingview

However, lackluster volumes accompanying XRP’s gains hinted at a potential price correction in the future. That could mean a short-term pullback toward the pennant’s lower trendline near $0.51 in April or a broader correction altogether invalidating the bullish continuation setup.

The extended sell-off scenario is best visible on the weekly chart below, wherein a key resistance-turned-support line has limited XRP’s upside prospects.

XRP/USD weekly price chart. Source: TradingView

If the fractal plays out again, XRP’s price will risk falling toward its multimonth ascending trendline support near $0.40 by May, down about 25% from current price levels.

SEC vs. Ripple hype cools down

The XRP price has soared by nearly 55% in 2023, primarily due to anticipations that Ripple will win the lawsuit against it by the United States Securities and Exchange Commission (SEC). That includes its 43% rise in March amid speculations that the ruling will come out by the month’s end.

Related: Ripple, Montenegro sign deal on project for unspecified national digital currency

But it didn’t. Simultaneously, the Google search score for the keyword “SEC vs. Ripple” declined from its March peak of 100 — a perfect score — to 56 in the week ending April 8.

Internet trends for the keyword “SEC vs. Ripple” on a 12-month relative basis. Source: Google Trends

In addition, “XRP” social volumes dropped from their March highs, according to data tracked by Santiment.

XRP social volumes. Source: Santiment

Lastly, XRP remains in lockstep with Bitcoin (BTC) on a daily timeframe. However, as Cointelegraph reported, BTC risks a correction to $25,000 in the near term due to rate hike risks, putting XRP and other altcoins in danger of losses as well.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Lawyer lays out his reasoning on why XRP is not a security

Lawyer Jeremy Hogan believes the United States Securites and Exchange Commission has failed to legally demonstrate that XRP is a security.

Ripple’s XRP (XRP) is not a security because it does not fit the definition of an “investment contract,” the “only” legislative definition that it could “possibly” fit, according to Jeremy Hogan, a partner at the law firm of Hogan & Hogan.

In a series of tweets on April 9, Hogan explained that, in his opinion, XRP could only be considered a security under the definition of an “investment contract,” as it doesn’t fit the other definitions of a security such as stocks or bonds.

Hogan argues, however, that the United States Securities and Exchange Commission has not demonstrated an implied or explicit investment contract in its suit against Ripple.

“Instead it argues that the purchase agreement is all that is required — and that is all it proves,” Hogan stated.

“But that argument tears the ‘investment’ from the ‘contract’ as a simple purchase, without more, [there] cannot be an ‘investment contract,’ it is just an investment (like buying an ounce of gold) as there is no obligation for Ripple to do anything except transfer the asset,” he added.

The SEC initiated a lawsuit in December 2020, claiming that Ripple illegally sold its XRP token as an unregistered security.

Ripple has long disputed the claim, arguing that XRP doesn’t constitute an investment contract under the Howey test — a legal test used to determine if a transaction qualifies as an investment contract. The test was established in 1946 by the U.S. Supreme Court in the SEC v. W.J. case.

Hogan further argues that all of the “blue sky” cases, which the Howey case relies on for defining an “investment contract,” involved some form of a contract regarding the investment.

Related: Ripple CEO: XRP lawsuit resolved by June, SEC conduct ‘embarrassing’

“Indeed, how can a person ‘reasonably rely’ on an offeror to make them a profit when they have zero legal recourse when that offeror fails to come through?” he said.

“They cannot. Even the oft-quoted four-part test implies that a ‘contract’ of some sort is required.”

Hogan says the crux of the issue is not whether Ripple used money from the sale of XRP to fund its business, but if the SEC has proven that there was either an implied or explicit “contract” between Ripple and XRP purchasers relating to their “investment.”

“There was no such contract,” Hogan claimed.

Magazine: Bitcoin in Senegal: Why is this African country using BTC?

Crypto market rally stalls at the $1.2T level, but bulls are getting positioned

The total crypto market cap has stalled at the $1.2 trillion level, but derivatives data shows bulls are preparing for the next breakout.

After gaining 11% between March 16 and March 18, the total crypto market capitalization has been battling resistance at the $1.2 trillion level. This same level was reached on August 14, 2022 and was followed by a 19.7% decline to $960 billion over the next two weeks. During the lateralization period between March 20 and March 27, Bitcoin (BTC) gained 0.3% while Ether (ETH) posted modest gains of 1.6%.

Total crypto market cap in USD, 12-hour. Source: TradingView

One source of favorable short-term momentum is a change in the Federal Reserve’s monetary policy. The U.S. Federal Reserve was forced to increase its balance sheet by $393 billion between March 9 and March 23 in order to provide short-term loans to failing banks. The objective of the plan was to reduce inflation, which has significantly impacted the cost of living and ultimately hampered economic expansion in the United States.

The balance sheet reduction runs counter to the central bank’s previous nine-month trend of offloading some of its debt instruments, exchange-traded funds and mortgage-backed securities. The reversion of this strategy is initially bullish for risk assets because the Fed is acting as a lifeline for struggling banks and hedge funds.

On the other hand, the sector’s regulatory risks were exacerbated on March 22 when Coinbase received a Wells notice from the U.S. Securities and Exchange Commission. The exchange’s staking program, some of its digital asset listings and its wallet services could all be targeted by the regulator. Again, the uncertainty stems from not knowing which assets qualify as securities.

These competing forces may have been the primary reason for cryptocurrencies’ narrow trading range near $1.18 trillion between March 17 and March 27. However, derivatives data presents compelling arguments for a rally toward $1.35 trillion and a retest of the $1 trillion threshold.

The total crypto market capitalization has remained stable since March 20, with XRP (XRP) rallying 22% and Litecoin (LTC) gaining 17%. XRP’s gains are likely attributable to investors’ expectations that Ripple will prevail in its ongoing legal battle against the SEC. As for Litecoin, analysts point to its upcoming halving in August, when the rewards for mining new blocks will be cut in half.

Options traders are reasonably confident above $1 trillion

Traders can gauge the market’s sentiment by measuring whether more activity is going through call (buy) options or put (sell) options. Generally speaking, call options are used for bullish strategies, whereas put options are for bearish ones.

A put-to-call ratio of 0.70 indicates that put option open interest lags behind the greater number of call options. In contrast, a 1.40 indicator favors put options, which is a bearish sign.

BTC options volume put-to-call ratio. Source: Laevitas

Since March 10, Bitcoin’s put-to-call ratio has been either balanced or favoring neutral-to-bullish call options. Even though Bitcoin’s price has risen by 41% in the past two weeks, options traders indicate they are not increasingly concerned about a price correction.

Related: Will BTC ditch the bear market? 5 things to know in Bitcoin this week

Leverage demand is balanced despite the resistance at $1.2 trillion

Perpetual contracts, also known as inverse swaps, have an embedded rate that is usually charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.

A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.

Perpetual futures accumulated 7-day funding rate on March 27. Source: Coinglass

In the past week, the seven-day funding rate for the majority of the leading cryptocurrencies has been neutral, indicating that no excessive buying leverage has been used to support prices. This translates to firepower for bulls, if necessary, and a significant reduction in liquidation risks.

The only exception was BNB (BNB), where short sellers paid 1.25% per week to maintain their positions. Regulatory uncertainty surrounding the Binance exchange is likely behind whales’ interest in shorting BNB.

The recent rally appears sustainable from a derivative perspective, and bulls are well positioned to defend against future declines. However, given that the crypto price gains may have been fueled by the Fed’s emergency action to avoid a banking crisis, the odds favor further lateral price movement.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

XRP price: ‘sell the news’ moment nears after crypto-leading 20% weekly gain

XRP whales have been accumulating since February with only days remaining until the SEC vs. Ripple lawsuit could reach its potential conclusion.

XRP (XRP) price is currently outperforming all other major cryptocurrencies as of March 27, rising over 20% in the past seven days.

XRP/USD daily price chart. Source: TradingView

XRP accumulation ahead of SEC vs. Ripple ruling

XRP has seen steady gains over the past seven days as the ongoing legal quandary between Ripple and the U.S. Securities and Exchange Commission (SEC) is expected to conclude by the end of March.

Meanwhile, the supply of XRP held by addresses with a balance between 10 million and 100 million tokens has risen by over 1% since February. That coincides with a 0.75% drop in the XRP supply held by the 1 million-10 million address cohort.

XRP balance in addresses holding between 1,000 and 100 million tokens. Source: Santiment

The addresses holding between 1,000 and 1 million XRP also increased their token holdings in the same period. That shows the XRP whales stacked up more tokens in the days leading up to the ruling on SEC vs. Ripple’s so-called summary judgment.

Multiple observers, including legal expert John Deaton, see Ripple winning the case, arguing that the SEC may have failed to give the company a “fair notice” before suing it for committing securities fraud. 

In recent months, Analisa Torres, the federal judge overseeing the lawsuit, has also favored Ripple on various motions. For instance, she has approved Ripple’s demand that the SEC makes its internal emails and documents regarding cryptocurrencies public, which may prove that the regulator unfairly targeted the company.

25% XRP price pullback in April?

From a technical perspective, the XRP/USD rally has brought the pair near a resistance confluence zone, which may lead to bearish reversal in the coming weeks.

The confluence comprises of a multi-year descending trendline (black), a 200-3D exponential moving average (200-3D EMA; the blue wave) and a support-turned-resistance horizontal level at around $0.50 (purple).

XRP/USD three-day price chart. Source: TradingView

In addition, XRP’s three-day relative strength index (RSI) eyes a close above its overbought threshold of 70, adding to the bearish case for April. 

Related: Will BTC ditch the bear market? 5 things to know in Bitcoin this week

In the case of a pullback, the XRP price’s next downside target appears at its multi-month ascending trendline support (black) around $0.35, down about 25% from current price levels.

On the other hand, a breakout above the descending trendline will have XRP price eyeing $0.60 as the next upside target.

This level has served as support in December 2021 and January 2022 — and as resistance in the September-October 2022 session. It is also the target of a prevailing bull pennant structure.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Community urges Coinbase to relist XRP as CEO fights for staking

The community wonders whether delisting XRP in 2020 was due to Coinbase’s willingness to protect customers from “government overreach.”

Amid Coinbase cryptocurrency exchange standing up for crypto staking and economic freedom, the online community has also urged the company to support XRP (XRP).

On Feb. 9, Coinbase’s chief legal officer Paul Grewal claimed that Coinbase’s staking program is not affected by rival exchange Kraken shutting down its staking services. The executive argued that Kraken’s staking platform was “essentially offering a yield product,” while Coinbase’s staking services are “fundamentally different and are not securities.”

Coinbase CEO Brian Armstrong also took to Twitter on Thursday to declare that the exchange will continue to oppose the government when it comes to protecting services like staking. He complained about the lack of clear staking regulations, adding:

“We will keep fighting for economic freedom — our mission at Coinbase. Some days being the most trusted brand in crypto means protecting our customers from government overreach.”

The community was quick to react to Armstrong’s “economic freedom” ambitions, with many criticizing Coinbase for staying away from XRP after delisting the cryptocurrency in 2020. The decision to suspend XRP trading came in response to the United States Securities and Exchange Commission (SEC) taking legal action against Ripple, alleging that the firm violated securities laws by selling XRP tokens.

“Is delisting XRP a good example of Coinbase protecting customers from government overreach?” one crypto enthusiast asked on the Twitter thread.

The community has also once again pushed the #relistXRP hashtag on Twitter, with many people stressing that XRP has not been declared a security yet, following more than two years of Ripple’s legal battle with the SEC.

“If Coinbase really wanted to show they are standing up against the SEC they would simply #relistXRP I mean seriously it has not even been declared a security! Coinbase and Brian Armstrong are nothing but a bunch of cowards,” one industry observer argued.

Related: Getting rid of crypto staking would be a ‘terrible path’ for the US — Coinbase CEO

Many crypto activists also referred to a recent legal win involving the sale of LBRY Credits (LBC) tokens, bringing parallels with XRP. On Jan. 30, the SEC admitted on record that the sale of LBRY tokens in the secondary market doesn’t constitute a security, implying that players like Coinbase can offer LBC trading without any legal issues.

“Coinbase and others should immediately list XRP after LBRY’s legal team and Deaton succeeded in getting the SEC to confirm on the record that secondary market sales of cryptos, for example by exchanges, do not constitute securities transactions,” Twitter user Eviszen wrote.

Launched in 2012, XRP is a major cryptocurrency native to the Ripple protocol, aiming to provide financial tools like a cross-border payment method. Despite being involved in a major legal battle with the SEC for the past few years, XRP has remained one of the world’s top cryptocurrencies by market value. At the time of writing, XRP is the sixth largest crypto asset by value, with a market capitalization of nearly $20 billion, according to data from CoinGecko.

Price analysis 2/8: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, AVAX

Bitcoin and major altcoins are witnessing a tough battle between the bulls and the bears, indicating indecision in the near term.

United States Federal Reserve Chairman Jerome Powell said on Feb. 7 that the “disinflationary process, the process of getting inflation down,” has started but it is still in its very early stages.

He cautioned that strong data would be met with more rate hikes. Though his comments were mixed, they triggered buying in the S&P 500 and Bitcoin (BTC) on Feb. 7 as investors speculated that the Fed may soon end its campaign of rate hikes.

Bitcoin’s strong rally in January and signs of ebbing inflation seem to have turned around investor sentiment. CoinShares data on Jan. 30 shows that institutional investors pumped $117 million into digital investment products. That sent the total assets under management to $28 billion, a sharp 43% increase from its November low.

Daily cryptocurrency market performance. Source: Coin360

Although the sentiment seems to have turned around, bear markets rarely end without a retracement of the rise from the low. The price needs to form a higher low followed by a higher high to confirm a potential trend change.

What are the critical support levels on Bitcoin and altcoins that could arrest future declines? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

Bitcoin slid below $22,800 on Feb. 6 but the bulls purchased this dip. That started a rebound above $23,000 on Feb. 7 but the buyers could not sustain the higher levels.

BTC/USDT daily chart. Source: TradingView

The bulls are unlikely to have it easy because the bears will try to pose a strong challenge on every rise toward $24,000. Although the upsloping moving averages suggest advantage to buyers, the negative divergence on the relative strength index (RSI) signals that the bullish momentum is slowing down.

Sellers are trying to trap the aggressive bulls by pulling the price below the 20-day exponential moving average ($22,568). If they manage to do that, the BTC/USDT pair may give back a part of its recent gains and dive to $21.480. Buyers are likely to defend the zone between $21,480 and the psychologically critical level of $20,000.

ETH/USDT

Ether (ETH) rebounded off the 20-day EMA ($1,600) on Feb. 7. The bulls tried to solidify their position by driving the price above the $1,680 resistance on Feb. 8 but they could not sustain the breakout.

ETH/USDT daily chart. Source: TradingView

This shows that the bears are active near the $1,680 resistance. The sellers will try to sink the pair below the 20-day EMA. If they succeed, the ETH/USDT pair could drop to $1,500. The sellers will have to crack this support to seize control.

Conversely, if the price turns up and rises above $1,700, the pair may signal the start of the next leg of the uptrend. There is a minor resistance at $1,800, but the potential of a rally to $2,000 increases if the bulls do not allow the price to dip back below $1,680. 

BNB/USDT

The bulls successfully defended the breakout level of $318 on Feb. 6, which is a positive sign as it shows that buyers are not waiting for a deeper correction to buy. The bulls will now try to push BNB (BNB) above $338.

BNB/USDT daily chart. Source: TradingView

If they can pull it off, the potential for a rally to $360 improves. The bears are expected to mount a strong defense at this level but if this barrier is surmounted, the BNB/USDT pair could extend the up-move to $400.

Conversely, if the price turns down and plummets below $318, it will signal that bears sold on rallies. That may trap the aggressive bulls and increase the risk of a fall to the 50-day simple moving average ($284).

XRP/USDT

The bulls pushed XRP (XRP) back above the 20-day EMA ($0.40) on Feb. 7 but are struggling to sustain the higher levels. This suggests that the bears are not ready to let bulls have their way.

XRP/USDT daily chart. Source: TradingView

The bears will try to pull the XRP/USDT pair to the strong support near $0.36. This is an important level to keep an eye on because a slide below it will suggest that the pair may extend its consolidation between $0.30 and $0.42 for a few more days. Trading inside a range is usually random and volatile.

If bulls want to seize control, they will have to thrust the price above the $0.42 to $0.44 resistance zone. After this zone is cleared, there is no major resistance until $0.51, hence the pair may travel this distance in a short time.

ADA/USDT

Cardano (ADA) jumped up from the immediate support at $0.38 on Feb. 7, indicating that lower levels are attracting buyers.

ADA/USDT daily chart. Source: TradingView

Although the risk from the negative divergence on the RSI remains, the upsloping moving averages suggest that bulls have the upper hand. There is a minor resistance at $0.41 but if this level is crossed, the ADA/USDT pair may touch $0.44. The bears will again try to stall the up-move at this level.

Contrary to this assumption, if the price turns down and plunges below the 20-day EMA, it will suggest that the bulls are tiring out. The bears will then try to sink the price to the 50-day SMA ($0.32).

DOGE/USDT

Dogecoin (DOGE) rebounded off the 20-day EMA ($0.09) on Feb. 7 but the shallow rise showed a lack of aggressive buying at lower levels. The price turned down on Feb. 8 and is testing the support at the 20-day EMA.

DOGE/USDT daily chart. Source: TradingView

If this level gives way, the sellers will try to strengthen their position by pulling the DOGE/USDT pair to the 50-day SMA ($0.08). This is an important support for the bulls to defend because if it gives way, the selling could accelerate and the pair may tumble to the crucial support at $0.07.

On the upside, the bulls will have to pierce the resistance zone between $0.10 and $0.11 to clear the path for a possible rally to $0.15.

MATIC/USDT

Polygon (MATIC) turned up from $1.17 on Feb. 6, which is a positive sign because traders did not wait for the price to touch the 20-day EMA ($1.13) before buying.

MATIC/USDT daily chart. Source: TradingView

The negative divergence on the RSI remains intact but the solid rebound on Feb. 7 shows strong demand at lower levels. This improves the prospects of a break above $1.30. If this level is scaled, the MATIC/USDT pair is likely to pick up momentum and surge to $1.45 and thereafter dash to $1.70.

The long wick on the Feb. 8 candlestick shows that bears are fiercely defending the $1.30 level. Sellers will now try to strengthen their position by pulling the price below the 20-day EMA.

Related: BTC price metric which cued biggest Bitcoin bull runs brakes out at $23K

LTC/USDT

In an uptrend, the bulls usually buy the dip to the 20-day EMA as it offers a low-risk trading opportunity. Litecoin (LTC) bounced off the 20-day EMA ($94) on Feb. 7, signaling that the uptrend remains intact.

LTC/USDT daily chart. Source: TradingView

There is a minor hurdle at $102.50 but if that is crossed, buyers will try to propel the LTC/USDT pair to $107. This level may again act as a roadblock but if buyers do not allow the price to dip below the 20-day EMA, the prospects of a rally to $115 increase.

Alternatively, if bears want to gain the upper hand, they will have to sink the price below the 20-day EMA. If they manage to do that, several stop losses may get triggered. The pair could then start a deeper correction to the 50-day SMA ($83).

DOT/USDT

Polkadot’s (DOT) retest of the breakout level was successfully defended by the bulls on Feb. 7. This shows that buyers are trying to flip the resistance line into support.

DOT/USDT daily chart. Source: TradingView

The bears are offering stiff resistance near $7. But the rising 20-day EMA ($6.41) suggests that the sentiment remains positive. If buyers drive the price above $7.12, the DOT/USDT pair could travel to $8, which is likely to again act as a strong hurdle.

The first sign of weakness will be a break and close below the 20-day EMA. That may encourage short-term traders to book profits and open the doors for a possible decline to $6 and then to the 50-day SMA ($5.52).

AVAX/USDT

Avalanche (AVAX) bounced off the 20-day EMA ($19.28) on Feb. 7, indicating that lower levels continue to attract buyers. However, the bulls are struggling to sustain the higher levels, signaling that bears are selling on rallies.

AVAX/USDT daily chart. Source: TradingView

The AVAX/USDT pair is stuck between the 20-day EMA on the downside and $22 on the upside. Usually, a consolidation near an overhead resistance is a positive sign as it shows that bulls are not rushing to the exit. If buyers drive the price above $22, the pair may start its journey toward $30.

Contrary to this assumption, if the price breaks back below the resistance line, it will suggest that the bulls have given up and are booking profits. The pair could then slide to the 50-day SMA ($15.61).

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

SEC settles on security claim in LBRY case; community calls it a big win for crypto

The SEC was hoping to seek affirmation on an ambiguous injunction after scoring a victory during a hearing in November 2022, but judges made it clear that the judgment was only for the direct sale.

The United States Securities and Exchange Commission (SEC) admitted on record that the sale of LBRY Credits (LBC) tokens in the secondary market doesn’t constitute a security. The settlement came during an appeal hearing in the LBRY vs. SEC case on Jan. 30.

In what many called a victory for the entire crypto industry against the SEC’s overreach regulation by enforcement, Attorney John Deaton settled a major debate during the appeal hearing.

The SEC was awarded summary judgment in its favor during the Nov. 7, 2022 hearing. The judgment categorized each sale of the LBC token during a six-year period as an investment contract without going into detail about the transactions’ specifics. The SEC hoped to advance its effort to gain legitimacy in the secondary market and bring it under its purview as well. The SEC has asked the New Hampshire district court judge to affirm the wide, ambiguous injunction prohibiting its sale.

Deaton, who represented tech journalist Naomi Brockwell as an amicus curiae, sought clarity for LBC secondary market transactions because he found the injunction ambiguous and broad. An amicus curia is an individual or organization that is not a party to a legal case but is permitted to assist a court by offering information, expertise, or insight that has a bearing on the issues in the case.

Deaton cited a paper by commercial contract attorney Lewis Cohen that examined all security lawsuits in the U.S. since the SEC vs. W.J. Howey Co case. No court acknowledged that the underlying asset was security at any point throughout Cohen’s examination of security cases in the United States.

Related: The aftermath of LBRY: Consequences of crypto’s ongoing regulatory process

Deaton persuaded the judge that LBC’s secondary market transactions were not securities. The SEC requested an order that does not make a distinction between LBRY, the company’s management, and users in an effort to avoid providing clarification for LBC. The judge turned to Deaton and told him: “amicus, I’m going to make it clear that my order does not apply to secondary market sales.”

The ruling in the case came as a relief for many in the crypto community, especially XRP holders. Ripple is currently facing a securities lawsuit from the SEC over the sale of XRP tokens. The recent ruling that indicates LBC token sale in the secondary market doesn’t qualify as securities can work in favor of the long-running Ripple lawsuit. A pro-XRP Twitter account said the ruling makes XRP a non-security as well.

Another user suggested the recent ruling could force a settlement in the Ripple lawsuit and said:

“That’s going to kill the sec court case against XRP could this force a settlement?”

Others lauded Deaton for his continuous work to fight against SEC’s overreach, as he has been actively involved in the Ripple lawsuit. 

New Ripple president says her job is to continue to scale amid crypto winter

Veteran Ripple executive and former general manager Monica Long said the company has seen record growth in recent months despite the crypto winter.

Monica Long has been named the new president of Ripple, moving up from general manager. Long joined the company in 2013 as director of communications and expanded her role last year from general manager of RippleX, the blockchain development side of the business, to general manager of the company as a whole, adding RippleNet, the company’s financial network, to her purview.

The presidency of Ripple has been a somewhat nebulous position until now, with the title being ascribed to both co-founders Brad Garlinghouse and Chris Larsen at various times.

Long’s promotion comes at a good moment for the company. She told Cointelegraph:

“It’s a job of continuing to scale. […] We’ve weathered many [crypto] winters, and with this one, we’re coming off a record year of business and customer growth.”

In this environment, “We’re continuing to grow our team,” she added.

Long joined Ripple when the company had only 10 employees. She spearheaded the development of the company’s On-Demand Liquidity solution, described as “Ripple’s flagship product,” which was launched in 2018. Ripple added an adjacent service called LiquidityHub last year, and the company will continue to expand that service, Long said. Over 60% of RippleNet’s payment volume was sent through ODL last year.

On the RippleX side, Long said an automatic market maker specification would go up for a vote by the validators this year.

Related: Inside the World Economic Forum: Circle, Ripple reflect on Davos 2023

Ripple is often in the news due to its ongoing court case with the United States Securities and Exchange Commission. The SEC has accused Ripple and co-founders Garlinghouse and Larsen of conducting an unregistered securities offering of $1.38 billion and selling XRP (XRP) to retail investors as an unregistered security.

Garlinghouse told CNBC on Jan. 18 that the company expects a decision on the case this year.