XRP Price Finds Footing Ahead of Key Regulatory Deadline

Highlights

• The XRP price is hovering at approximately $0.52 after dipping below $0.50.
• In the Ripple case, investors are awaiting a key piece of evidence that the U.S. SEC must submit shortly.

While nobody knows for sure when the ruling will come in Ripple’s legal battle with the U.S. SEC, there is one milestone that investors are awaiting. In the meantime, the XRP price is holding steady at close to $0.52 after dipping below the $0.50 level in recent days.

Hinman Speech

The securities regulator has until June 13 to deliver sensitive emails that are expected to serve as a tailwind for the blockchain company. The communication involves former SEC executive William Hinman, who revealed the regulator’s previous stance on ETH, the second-biggest cryptocurrency.

Hinman famously said, speaking for the SEC, that ETH didn’t meet the definition of a security. This revelation is likely to weaken the SEC’s case against Ripple considering the regulator is accusing the blockchain company of selling XRP as an unregistered security. The comments, which are part of what’s known as the Hinman Speech, are likely damming for the SEC.

SEC’s War Against Crypto

However, the SEC’s case against Ripple was only the tip of the iceberg. In its lawsuits against crypto exchanges Coinbase and Binance, the regulator has since identified several other digital assets it claims are securities, including Cardano (ADA).

Ripple CTO David Schwartz knows a bit about what Cardano Founder Charles Hoskinson, who is also a co-founder of Ethereum, is going through and offered some insight.

The SEC claims that ADA qualified as a security after it was listed sold by crypto exchanges, suggesting the very availability of ADA on U.S. crypto exchanges thrust the crypto into securities territory.

However,  the crypto community is finding holes in this argument, including Schwartz, who contends that the SEC is sending mixed messages.

There is likely to be uncertainty looming over the crypto market for the foreseeable future. Meanwhile, XRP is moving in the direction of clarity, which could allow this popular asset to continue to trade independently and based on investors’ convictions.