is the new record holder of the cryptocurrency market. In just a couple of weeks, XRP skyrocketed a phenomenal 225%, recovering from $ 0.60 to $1.95. It is especially hard to believe in such a dynamic if we consider that at the beginning of this year some experts predicted that XRP would soon be a remnant of history because of the SEC's suit claims. The US Securities and Exchange Commission accused Ripple of issuing a pseudo-cryptocurrency, which is in fact a security.
Nevertheless, the project turned out to be quite viable, or rather, the line of defense chosen by Ripple's lawyers. It is worth noting that earlier the SEC resorted to non-standard practice. In addition to the company itself, it indicated two of its executives, CEO Brad Garlinghouse and Chairman Chris Larsen, as defendants, accusing them of illegally selling securities in the form of XRP tokens.
The SEC stated that the XRP digital currency used by Ripple for cross-border payments had been an unregistered security since 2013. Thus, in their opinion, Ripple has been conducting illegal securities trading for seven years. According to the SEC, the company's top management, as well as millions of retail investors, should have known about this. The SEC's position completely contradicts their own conclusions, according to which Ripple was not officially recognized as a security until the very last moment. In 2018, an SEC spokesman announced publicly that XRP's status was “undetermined.” At the same time, before listing the token, some trading platforms asked the SEC whether XRP was a security, but the agency refused to give any clear explanation.
The defendants' representatives asked the court to dismiss the SEC's lawsuit on the grounds that the SEC could not provide convincing evidence of a deliberate violation of the law by Ripple executives in the course of XRP sales. Moreover, Larsen's lawyers also stated that the SEC's claim for monetary relief is time-barred because the statute of limitations has expired. By May 14, the SEC must submit its objections to the defendants' motions. After that, they can file a countering statement by June 4.
XRP buyers are also receiving support from the news that XRP holders will now be able to use their tokens for mining and liquidity, as well as engage with the world's DeFi applications. Thus, the XRP investors got an additional opportunity to receive passive income. Coupled with Ripple's success in the SEC's lawsuit, this news provided significant support for XRP, which keeps climbing up and has pretty good chances to rise above $2