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Ripple price surge: XRP soars after CEO rips SEC – is market pricing in court win?

By Darius McQuaid

15:14, 23 September 2022

Representation of Ripple cryptocurrency is seen in this illustration photo taken
The SEC has filed a lawsuit against Ripple, arguing that XRP is a security – Photo: Getty Images

The CEO of Ripple Labs, the company behind Ripple (XRP), verbally attacked the US Securities and Exchange Commission (SEC) amidst its ongoing case with the crypto firm, saying it had “lost its way” and was “cuckoo for cocoa puffs”.    

Brad Garlinghouse’s comments on FOX Business saw XRP experience a rise of 7.94% to $0.4801, according to CoinMarketCap. Also the run-up to the Ripple CEO’s appearance on the show resulted in a 17% increase for the cryptocurrency.

Ripple is embroiled in a lawsuite filed by the SEC in December 2020, arguing that XRP is a security and subject to regulation.

Garlinghouse said he believed people were starting to realise that “the SEC really is overreaching, and they are not following a faithful allegiance to the law”.

The CEO added that the SEC receives its power from “statutes passed by Congress; the SEC cannot just take power… The 1933 Securities Act says that you have to have an investment contract and Ripple does not have a written, oral or implicit contract.”

‘Constant disrespect to the court process’

Both Ripple Labs and the SEC filed motions for a summary judgement last week. The SEC motion was made public on Saturday 17 September, which went against the judge’s wishes, as it had been agreed to release the motions on Monday 19 September.

ETH/USD

3,512.09 Price
+0.070% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.13 Price
+1.000% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

SOL/USD

171.52 Price
+0.660% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

XRP/USD

0.60 Price
+3.190% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

In response to the move, Garlinghouse said: “They jumped the gun and it’s just this constant disrespect to the court process, which we have seen time and time again.”

A summary judgement would mean the lawsuit would not go to trial and instead ask District Judge Analisa Torres would make a ruling based on the arguments filed in documents.

The Ripple CEO does not foresee a trial taking place, as it would only be necessary to determine if “there are uncertainties about facts, and the facts here are not in dispute, the law is in dispute”.

Garlinghouse concluded by saying: “We think she [the judge] has the information to make a ruling and it’s very clear the SEC is grossly overreaching their authority.”

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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