Sec v Ripple There was a weight of uncertainty, regulatory risk and recession fears
It was another quiet session, with no substantive updates from the ongoing SEC v Ripple case to impress.
Since the introduction of the summary response to the summary judgment, XRP has been under pressure. A court order can be issued at any time. Over time, hopes for a settlement faded. The collapse of FTX and the repercussions on the broader market will likely put pressure on the SEC to win the case.
However, William Hinman’s documents relating to the speech remain a trump card for the defendants. The Securities and Exchange Commission showed its hand by filing more than a half-dozen motions to protect speech-related documents from the public under an attorney-client privilege.
In 2018, the former SEC director of the Enterprise Finance Division said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
A move to trial would likely make the documents public domain, which could force a settlement by the Securities and Exchange Commission. Everything depends on the court’s decision.
Today, investors are likely to continue to test XRP price support ahead of the upcoming court date on December 22nd. But the broader cryptocurrency market and external market forces will also have an impact.
Fears of an economic recession, regulatory risks, and fallout from the FTX collapse continue to prevent the broader market from a sustainable recovery.