Investing.com – Amid the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple, the XRP community is concerned about whether the government will be able to confiscate XRP if it loses in court.
Ripple’s former manager Matt Hamilton managed to calm things down. From his point of view, there are no less than three reasons against such a scenario. XRP is decentralized, which means that Ripple, as a company, does not have access to user wallets. A confiscation would therefore only work if each holder of XRP was forced by court order to hand over their tokens.
If the US government needs the tokens for its own applications, then it would be much easier for it to create its own central bank digital currency (CBDC), Hamilton argues.
With such a harsh coercive measure, the usefulness of XRP would additionally be destroyed, which would consequently lead to a fork of the original XRP blockchain. , he concludes.
On the CryptoLaw website, founded by lawyer John E. Deaton, all the documents with which the SEC and Ripple are trying to exclude the opposing party’s experts from the legal process have been uploaded. Each of the parties to the trial thus tries to prevent important witnesses from testifying before a jury, so as not to compromise their own position. Briefs known as Daubert motions are however partially redacted.
Attorney James K. Filan, however, announced that the SEC had filed a new request to prevent further testimony from defense experts.
The Howey test, which the SEC readily refers to, is used to assess when an asset is a security. However, it seems that the authority wants to give it less importance in the case of XRP, as noted by Greg Beuke, an immigration lawyer. According to him, the Howey test is not present enough in the documents submitted by the SEC, although it is a legally binding test. This is probably because Howey’s test is not fully applicable to this particular case and is therefore a bad legal argument.
Ripple Technical Analysis
Ripple rose 0.95% to a price of $0.3851, while the weekly gain stands at 9.06%.
The cryptocurrency hit a new intermediate high at a price of $0.4085, but the overbought conditions then led to a downward correction. This one tested the 23.6% fibo retracement and finally broke it after several attempts.
If yesterday’s close is confirmed below, expect an extension of the downside correction towards the 38.2% Fibo retracement of $0.3728. Next, the 50% Fibo retracement of $0.3618 would offer further support before the 20-day MA at $0.3554 kicks in.
Only if one manages to reclaim the daily close 23.6% fibo retracement can one expect a retest of the middle high.
By Marco Oehrl