Ripple (XRP) is this week’s frontrunner as the rest of the market continues to either consolidate or trade in a ruthless chop. The cryptocurrency has defied expectations and is trending upwards with little signs of slowing down.
Here are a few possible reasons why and whether this rally could go any further.
Case Against SEC Tilts in Ripple’s Favor
It seems that the major reason for the increase in XRP’s price is that investors seem to be leaning bullish on Ripple winning the case against the US Securities and Exchange Commission.
Recall that the SEC filed a lawsuit alleging that Ripple conducted an unregistered sale of securities, essentially claiming that XRP is a security.
This week Judge Analisa Torres denied the Commission’s request to seal documents pertaining to a speech by Bill Hinman – the director of the agency’s corporate finance division. This is the third time this specific request has been denied, so the question is – why is it so important for the SEC to seal these records? Well, it’s pretty straightforward.
William Hinman is a former director of the SEC’s Division of Corporation Finance. The speech in question refers to when he indicated that the agency didn’t consider ETH security at the time, and Ripple layers have fought to find out more about how he came to that conclusion. They hope it could impact XRP’s own classification.
Judge Torres says the documents should be accessible based on the common law principle of public access to judicial documents:
Documents are considered “judicial documents” if they are “relevant to the performance of the judicial function and useful in the judicial process. […] The relevance of a specific document does not depend on which way the court ultimately rules or whether the document ultimately in fact influences the court’s decision. Rather, what is important is whether a document “would reasonably have the tendency to influence a district court’s ruling on a motion.”
$250M Metaco Deal Finalized
Another positive development for Ripple, and thereby – XRP, is that the company entered into a $250 million deal to acquire Metaco. The latter is a cryptocurrency custody provider based in Switzerland.
The deal aims to expand Ripple’s position in the world of crypto by also expanding its services towards crypto custody.
Speaking on the deal, Ripple CEO Brad Garlinghouse said:
“Metaco is a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched customer track record. Through the strength of our balance sheet and financial position, Ripple will continue pressing our advantage in the areas critical to crypto infrastructure. Bringing on Metaco is monumental for our growing product suite and expanding global footprint.”
The above can finally explain XRP’s price surge in the past few days, but the question is – will it continue? This is a question that only time can answer, but if the positive developments surrounding the case against the SEC continue, then this might also have a positive somewhat impact on the price. After all, crypto is known for being news-driven, where announcements, be it good or bad, tend to influence the price.