Home / Ripple / XRP News Today: How the XRP will be affected by the decision of a US federal judge to deny the request for a preliminary injunction against Blockvest by the SEC

XRP News Today: How the XRP will be affected by the decision of a US federal judge to deny the request for a preliminary injunction against Blockvest by the SEC

SEC

On November 27, the US Securities and Exchange Commission requested a motion to block an initial offer of coins hosted by Blockvest which was scheduled for December 1st. However, the judge stated that the SEC was unable to demonstrate that the company sold tokens to outside investors during the pre-ico phase that took place at the beginning of the year.

The judge's decision states that the California district judge, Gonzalo Curiel, had previously granted the SEC request for a temporary restraining order and the blocking of Blockvest's activities twice in November. After several hearings, the judge concluded that the SEC failed to demonstrate that investors who bought the coins during the initial offer of Blockvest coins were buying a guarantee.

What does this mean for XRP?

For a while, everyone tried to determine the status of XRP. Some major cryptocurrency exchanges have refused to list XRP because they do not want to be fined for trading unregistered securities. At the beginning of the year, the SEC announced that BTC and ETH are not securities. However, guard dogs did not say anything about XRP.

Ripple tried as much as possible to prove that it is an independent body that does not control what happens with the XRP token. However, many believe that XRP is centralized. Some time ago, the SEC stated that decentralized activities will not be classified as securities. During the hearing, they repeated the statement.

Ripple has already received an administrative fine of $ 450,000 for the sale of unrecorded securities. This happened before they signed up for the Financial Crimes Network or implemented the right AML procedure. In reality, however, if the SEC used Howey's test to judge the status of XRP, it would certainly not consider XRP's security.

According to the explanation provided by Ripple, those who own XRP do not own a share in the company. They have no right to payment of company dividends. They simply own the token and that's it. In addition, the company has never promised investors that the value of the token will increase in the future as it has no control over the price and can not make promises about the earnings expectations that could result from the efforts of others. This is one of the fundamentals of Howey's test.

Thus, the judge's decision, Gonzalo Curiel, on the particularity of proving that Blockvest has promised earnings expectation, will help promote Ripple's case in determining XRP status.

XRP Price Analysis (XRP)

While last month, XRP outperformed the market, as it did for some time. The first of December, was traded in green against the USD just like BTC and other cryptocurrencies. He started the day in red against the USD but green against Bitcoin. At the time of writing, XRP was trading at $ 0.360396. This shows that the second largest cryptocurrency by market capitalization is down 2.76% from the US dollar, but up 0.37% compared to BTC, which is currently trading in red. The market capitalization is $ 14,533,807,885 with a 24-hour trading volume of $ 339,817,162.

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