Will crypto lobbyists’ support for Ripple cause the XRP price to explode?

  • Ripple has received support from the crypto lobby group Blockchain Association, which asked the court for permission to support the giant in its lawsuit.
  • Amicus briefs were filed by interested parties and supporters of Ripple, The Internet Choice Advocates Network and SpendTheBits.
  • Ripple, the largest public holder of XRP, released its quarterly report revealing that the giant has less than 50% of the total XRP supply.

The Blockchain Association, a crypto advocacy company and lobby group, has asked the court for permission to help payments giant Ripple in its defense against the US regulator Securities and Exchange Commission (SEC).

Ripple is gaining support from lawyers and blockchain lobbying groups

The Blockchain Association, a crypto lobby organization based in Washington, DC, has filed for permission to assist Ripple as a friend of the court in the SEC v. Ripple lawsuit. The US Securities and Exchange Commission has sued payments giant Ripple for selling XRP as an unregistered security. Since December 2020, the case has been processed with several procedural motions, and both parties have submitted their motions.

1/ Today we announced that we filed an amicus brief supporting a proper interpretation of Howey in the SEC’s two-year legal battle against @Ripple.

A judge now has the opportunity to make a significant statement about Howey’s use of digital assets.

Here’s what’s at stake

— Blockchain Association (@BlockchainAssn) 28 October 2022

The Blockchain Association believes that the SEC’s extremely broad interpretation of securities laws could have a devastating impact on the industry and the outside world. The brief says the court should look at the specific purpose of XRP, as the SEC has “unlawfully” considered secondary sales as evidence that Ripple violated federal securities laws.

Many tokens traded on secondary markets fail the various principles of the Howey test, a Supreme Court case that serves as precedent for determining whether an asset is a security. From the post it says:

The securities laws do not allow for how an asset that may have been issued as a security can exist if it is no longer associated with some form of investment contract—a crucial consideration when trying to apply Howey.

The Blockchain Association is not alone in supporting Ripple. Another major group, Investor Choice Advocates Network and SpendTheBits Inc., filed their own amicus brief on Oct. 28 with the court’s approval. In their brief, these organizations argue that the SEC’s definition of “investment contract” is vague and indicative of efforts to determine the SEC’s jurisdiction over cryptocurrencies.

Ripple holds less than 50% of the XRP supply

Ripple, the largest public holder of XRP, has released a new quarterly report showing that the company currently has less than 50% of the altcoin supply. In addition, the payments giant only operates four of the 130 XRP validation nodes.

Ripple CEO Brad Garlinghouse commented on the tweet saying:

Below 50% – a major milestone! For 10 years, Ripple has focused on using XRP and XRPL in our products because of the speed, security and scalability of value transfer. With more and more customers using XRP in their payment flows, it’s clear that there is real utility here.

Analysts: XRP is oversold

Cryptoanalyst and certified trader Duncan Baldwin analyzed the XRP/USD price chart and noted that the altcoin has recently suffered a decline. XRP has started its recovery, rising 2.5% overnight. Baldwin explains that the XRP/USD pair appears to be oversold locally. As the pair approaches the horizontal support level between $0.42 and $0.43, an increase in XRP price is expected.

XRP chart

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