Ripple
(XRP)
traders’
sentiment
turned
positive
on
Friday,
as
CEO
Brad
Garlinghouse
highlighted
the
addition
of
XRP-Dollar
reference
rate
and
indices
to
the
CME
Group
and
CF
Benchmarks.
The
CME
Group
is
a
leading
derivatives
marketplace,
and
CF
Benchmarks
is
an
FCA-regulated
Benchmark
administrator.
The
addition
of
XRP
indices
shows
how
the
asset
is
heading
towards
finding
utility
in
institutional
crypto
products.
XRP
trades
at
$0.4719
at
the
time
of
writing.
Ripple
is
in
an
upward
trend,
extending
gains
by
nearly
5%
on
Friday.
As
sentiment
among
XRP
traders
stays
bullish,
the
altcoin
could
rally
towards
resistance
at
the
psychological
barrier
at
$0.50.
At
the
time
of
writing,
XRP
trades
at
$0.4719.
Further
up,
XRP
could
rally
towards
$0.5205,
nearly
10%
gains
from
the
current
level,
as
seen
in
the
XRP/USDT
daily
chart.
The
Moving
Average
Convergence
Divergence
(MACD)
indicator
shows
a
positive
momentum
of
the
Ripple
price
trend.
XRP/USDT
daily
chart
If
XRP
corrects,
the
altcoin
could
collect
liquidity
in
the
Fair
Value
Gap
(FVG)
between
$0.40
and
$0.44,
as
seen
in
the
chart
above.
Further
down,
Ripple’s
price
could
find
support
at
the
July
5
low
of
$0.3823.
It
depends
on
the
transaction,
according
to
a
court
ruling
released
on
July
14:
For
institutional
investors
or
over-the-counter
sales,
XRP
is
a
security.
For
retail
investors
who
bought
the
token
via
programmatic
sales
on
exchanges,
on-demand
liquidity
services
and
other
platforms,
XRP
is
not
a
security.
The
United
States
Securities
&
Exchange
Commission
(SEC)
accused
Ripple
and
its
executives
of
raising
more
than
$1.3
billion
through
an
unregistered
asset
offering
of
the
XRP
token.
While
the
judge
ruled
that
programmatic
sales
aren’t
considered
securities,
sales
of
XRP
tokens
to
institutional
investors
are
indeed
investment
contracts.
In
this
last
case,
Ripple
did
breach
the
US
securities
law
and
will
need
to
keep
litigating
over
the
around
$729
million
it
received
under
written
contracts.
The
ruling
offers
a
partial
win
for
both
Ripple
and
the
SEC,
depending
on
what
one
looks
at.
Ripple
gets
a
big
win
over
the
fact
that
programmatic
sales
aren’t
considered
securities,
and
this
could
bode
well
for
the
broader
crypto
sector
as
most
of
the
assets
eyed
by
the
SEC’s
crackdown
are
handled
by
decentralized
entities
that
sold
their
tokens
mostly
to
retail
investors
via
exchange
platforms,
experts
say.
Still,
the
ruling
doesn’t
help
much
to
answer
the
key
question
of
what
makes
a
digital
asset
a
security,
so
it
isn’t
clear
yet
if
this
lawsuit
will
set
precedent
for
other
open
cases
that
affect
dozens
of
digital
assets.
Topics
such
as
which
is
the
right
degree
of
decentralization
to
avoid
the
“security”
label
or
where
to
draw
the
line
between
institutional
and
programmatic
sales
are
likely
to
persist.
The
SEC
has
stepped
up
its
enforcement
actions
toward
the
blockchain
and
digital
assets
industry,
filing
charges
against
platforms
such
as
Coinbase
or
Binance
for
allegedly
violating
the
US
Securities
law.
The
SEC
claims
that
the
majority
of
crypto
assets
are
securities
and
thus
subject
to
strict
regulation.
While
defendants
can
use
parts
of
Ripple’s
ruling
in
their
favor,
the
SEC
can
also
find
reasons
in
it
to
keep
its
current
strategy
of
regulation
by
enforcement.
The
court
decision
is
a
partial
summary
judgment.
The
ruling
can
be
appealed
once
a
final
judgment
is
issued
or
if
the
judge
allows
it
before
then.
The
case
is
in
a
pretrial
phase,
in
which
both
Ripple
and
the
SEC
still
have
the
chance
to
settle.
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