Root causes for XRP 40% weekly rise deal with the Securities and Exchange Commission (SEC) and the lawsuit against Ripple.
XRP blocking SEC’s transparent attempts
Ripple Labs and some of its top executives are objecting to the SEC motion seeking more time or room to respond to potential new filings.
Ripple Labs, its CEO Brad Garlinghouse, and its executive chairman Chris Larsen stated in a September 20th filing that the SEC is making a “transparent attempt” to postpone the resolution of the lawsuit in which the markets regulator claims the payments firm issued XRP as an unregistered security.
Ripple CEO went on Fox Business to discuss the newest update on the company’s lawsuit
In December 2020, the SEC filed a lawsuit against Ripple, Garlinghouse, and Ripple co-founder Christian Larsen for allegedly selling more than $1.3 billion in unregistered securities. However, Ripple has consistently claimed that XRP fails the Howey Test and thus does not meet the criteria for being classified as a security.
Garlinghouse made the same claim on television. “The first step in determining whether you are a security is to have an investment contract.” Our point is that Ripple lacks a contract. Who is the contract with? It is not a written contract, an oral contract, or an implied contract.” U.S. Magistrate Judge Sarah Netburn, who is overseeing the case, recently chastised the SEC for its litigation tactics, calling them hypocritical. The ruling has yet to be scheduled.