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XRP jumps 44% in a week after Ripple moves to dismiss SEC lawsuit

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XRP jumps 44% in a week after Ripple moves to dismiss SEC lawsuit

XRP, a cryptocurrency originally launched by the founders of crypto-payments company Ripple, jumped 11% early Friday morning after a solid week of gains – and investors are hoping the SEC lawsuit against Ripple could be coming to an end.

Trading today for XRP has since cooled off a bit, now up 3% on the day. But that is still enough for a strong 44% rise in the past seven days, now back in the top six coins by market cap, despite a general crypto market crash. Bitcoin is back below $19,000, while Ethereum is down another 12.8% in the middle of its sale after merger.

The price pump for XRP follows news earlier this week that Ripple and the SEC have filed motions for summary judgment in the $1.3 billion lawsuit, each seeking to dismiss the pretrial lawsuit and asking the judge to rule in their favour. The SEC filed charges against Ripple in December 2020 for allegedly conducting an unrecorded securities sale when selling XRP.

In a memorandum Accompanying its filing, Ripple argued that it confers no rights on XRP holders in its token sale and that the company has no obligation to act in their best interests.

“The filings show that the SEC is acting outside of its legal bounds,” said Ripple General Counsel Stu Alderoty. said in a press release. “The SEC isn’t looking to enforce the law — they’re looking to remake the law in hopes that it can impermissibly expand their jurisdiction.”

In contrast, the SEC alleges that XRP meets the criteria for a security under the Howey Test, a benchmark used since the 1930s to determine whether an asset qualifies as an investment contract under US federal law. . The regulator says buyers of XRP expected to make a profit after buying the coin, and that the purchases amounted to investing in a joint venture.

Brad Garlinghouse, CEO of Ripple appeared on fox business this week to discuss the price of XRP and its relationship to the RIpple lawsuit.

“Before the SEC got involved with us and ETH, XRP was the second most valuable digital asset ahead of ETH,” he pointed out.

Garlinghouse said Ripple expects there will be no trial, as the facts of the case “are not really in dispute”, he said.

“We think [the judge] has the information it needs to make a decision, and we think it’s very clear that the SEC is way beyond its authority,” he said.

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