Ripple (XRP) is celebrating a minor victory in the major lawsuit it is involved in. The company behind the XRP crypto has filed a motion to view certain documents from the Securities and Exchange Commission (SEC). The judge has now largely passed this motion. What does this mean for Ripple?
For those new to the Ripple lawsuit, here is a brief introduction. Ripple was recently charged by the SEC, a US regulator. It states that XRP is an investment contract. Should the judge agree with the regulator, XRP would only be allowed to be traded in the United States under strict conditions, and the project’s founders would have illegally sold XRP for billions of dollars.
So the lawsuit basically determines the future of XRP in broad outlines. It is therefore not surprising that many eyes are focused on this matter. Yesterday there was finally some good news for Ripple, at least that’s how most interpret it. The judge has approved a motion that allows Ripple to view documents from the SEC. These documents are memos and various reports to show how the SEC concluded that XRP is an investment contract.
So that could become very interesting. The SEC has already designated bitcoin (BTC) and ethereum (ETH) as commodities, which means that the cryptocurrencies are not under its supervision. The documents must show how XRP has been found to be different from these two cryptos. Yet the case is not all about XRP, says SEC attorney Dugan Bliss. He said:
"The actions of the promoter Ripple, Ripple CEO Brad Garlinghouse and founder Chris Larsen, ed. Should be central here."
In addition, Jeremy Hogan, a lawyer who is not part of the case but keeps an eye on it, shared some other interesting news. According to him, the SEC already called Ripple a “digital currency company” in 2016. In that case, XRP would not be an investment contract.
The lawsuit is still in its early stages and could take months. It is therefore too early to say that this will lead to a victory. The XRP price has reacted strongly to developments in this case recently and it is therefore wise to be careful.