- US financial regulator Securities and Exchange Commission has won a legal battle against LBRY Inc, declaring token LBC a security.
- Payment giant Ripple is awaiting the outcome of its lawsuit versus SEC after both parties filed reply briefs.
- Analysts argue that XRP price outlook remains bearish as the asset forms a triple bottom pattern at $0.45.
US regulator Securities and Exchange Commission (SEC) won its lawsuit against LBRY Inc after a New Hampshire judge announced that LBRY is an unregistered security, landing a milestone win for the regulator. This could spell doom for payment giant Ripple which is involved in a similar case with SEC.
Also read: Will Chainlink gains come undone as crypto market collapses under rumors?
US SEC won lawsuit against LBRY Inc
US financial regulator, the Securities and Exchange Commission (SEC) has won a legal battle against LBRY Inc. A New Hampshire federal judge ruled in favor of the US SEC and declared LBC token an unregistered security. The judgment sent shockwaves through the entire cryptocurrency industry.
Since December 2020, the SEC has been embroiled in a legal battle with payment giant Ripple. The cross-border payment settlement firm garnered support from several industry giants, exchanges, blockchain associations and lobby groups in the US. Cryptocurrency exchange Coinbase, the Crypto Council, Cryptillian payment systems are among the eleven entities that filed an amicus curiae brief in support of Ripple.
The payment firm’s supporters are convinced that the court’s decision in the SEC v. Ripple lawsuit could have a lasting impact on the crypto industry. LBRY’s digital token, LBC also known as LBRY Credits was offered as a security. Judge Paul Barbadoro’s ruling fueled the ongoing debate on whether cryptocurrencies should be regulated as securities through federal enforcement.
Update on the SEC v. Ripple lawsuit
Despite the SEC’s win in its lawsuit against operators of a decentralized video-sharing platform, XRP holders are positive and hopeful for Ripple’s win.
The US regulator has asked the court for more time to file briefs, until November 30, 2022. The SEC has asked the court to set November 11 as the deadline for submission of amicus curiae briefs.
Based on a report from crypto intelligence platform CoinShares, XRP-related investment products saw inflows for the third week totaling $1.1 million month-to-date (MTD). Investors are still showing an interest in XRP, despite the latest developments in the lawsuit.
4/ XRP saw inflows for the 3rd week totalling US$1.1m.
— CoinShares (@CoinSharesCo) November 7, 2022
The SEC case is still ongoing, but recent events seem to have given confidence to investors. pic.twitter.com/35IdURLBZI
Analysts retain bearish outlook on XRP
Arslan Butt, a technical analyst, evaluated the XRPUSD price chart and noted that the outlook remains strongly bearish. XRP price broke past a triple bottom pattern at $0.45 and yielded 7% losses for holders.
XRPUSD price chart
XRP price continued its decline post the triple bottom and wiped out gains from the past two weeks. The analyst’s downside target for XRP price is $0.42; it is currently trading just above at $0.4380. Yet, if XRP price can recover from the drop below $0.45, it could invalidate the bearish thesis. In such a scenario, XRP price’s bullish target would be $0.48 then $0.51.
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