Gensler’s Nomination Hearing Did Not Go as XRP Attorney Expected

Gary Gensler’s nomination hearing before the U.S. Senate Banking Committee was seen by some members of the community as a disappointment. This comes despite the positive signals the crypto industry saw from Gensler’s introductory speech as the new chairman of the U.S. Securities and Exchange Committee. 

Jeremy Hogan, a well-known attorney in the XRP community, noted that dark times could come for the whole industry. He said this despite never wanting to come across as negative in his vlogs. He thinks that the new chairman’s testimony was disappointing and could spell problems from the crypto world.  

Caption: Gary Gensler faced questions from U.S. Senators in the hearing.

During the nomination hearing, the conversation was not focused on blockchain or cryptocurrencies. After more than an hour, a senator questioned what the U.S. Congress and U.S. SEC could do to create a “forward-thinking regulatory framework”. Gensler responded by spinning the question and alluded to how the SEC under him will ensure that investors will be protected from companies. 

A senator from Tennessee also asked the newly appointed U.S. SEC chair how he will approach digital assets. Gensler replied that he would treat cryptocurrencies in a “technologically-neutral” manner. 

Hogan noted that this would mean that Gensler will treat blockchains and DLTs as he would other companies or securities. He further added that this would put the blockchains in old pigeonholes. 

Meanwhile, a senator from Wyoming, a very progressive state wherein Ripple recently registered as a new company, addressed Gensler’s point that the US SEC acted as a “black hole” for progress and asked if this will change. Gensler avoiding this question and reiterated how the US SEC could help blockchain companies and protect the investors. 

Finally, Hogan mentioned how Gensler’s answers support the US SEC’s recent risk warnings against digital assets. He notes that this is not a good sign for cryptocurrencies. This means that in the future, the US SEC might continue regulating cryptos through litigations and threats.

FXCoin and Sumitomo Tests XRP for Overseas Forward Transactions

The remittance platform based on the XRP made for international payments developed by FXCoin Ltd. and SBI Holdings recently reported that they’re continuing to make significant progress. As part of a recent demonstration they performed, the company conducted an XRP based forward transaction to Sumitomo Corporation to send a payment to Singapore on February 25, 2021. 

Last year, a demonstration experiment was also done on November 27, which involved a forward transaction with a group company located in Japan. The transaction executed recently involved Sumitomo sending XRP towards Singapore on a trial basis. At the same time. Sumitomo purchased XRP from FXCoin at a specified date by entering a forward-dated transaction with FXCoin meant to hedge the price movement of the XRP.

Caption: FXCoin tested the XRP based forward transaction for overseas transfers

FXCoin reports that the experiment was meant to test and demonstrate FXCoin’s hedging mechanism despite the highly volatile cryptocurrency it uses. The company says that the forward-dated transaction it provides will work as a hedge for the price’s fluctuation risks associated with the XRP. 

Last November, the first experiment demonstrated the usefulness and great potential of crypto-assets for forward-dated transactions in Japan. On the other hand, the most recent test demonstrated the possibility of completing transactions related to settlements between foreign and domestic companies and institutions. 

Also, FXCoin expects these experiments to show its ability to conduct forward-dated transactions using crypto-assets, particularly the XRP, for commercial trades with companies operating overseas. These experiments are expected to reduce settlement costs, diversify settlement methods, and improve settlement speeds of these companies’ activities as they expand globally. 

This project was first unveiled in July last year, with FXCoin leading the way after receiving a non-disclosed investment from SBI Holdings, one of the biggest supporter of the XRP in Asia.

Ripple XRP and MoneyGram Partnership Ends, MoneyGram Faces Lawsuit

Ripple and MoneyGram’s partnership was put to a halt last week as the money transfer giant announced that it would stop using the cryptocurrency for its cross-border transfers until the lawsuit filed by the SEC against Ripple concludes. A few days after the announcement, MoneyGram was sued for allegedly misleading its investors about XRP, which is used in its money transfer transactions for some time.

On Tuesday, the Rosen Law Firm released an announcement that it filed a class-action lawsuit against MoneyGram on behalf of investors who bought MoneyGram securities from June 17, 2019, to February 22, 2021. The law firm believes that eh investors are entitled to compensations after the money transfer giant canceled its partnership with Ripple because of its legal woes against the US SEC.

Caption: MoneyGram will no longer use Ripple XRP for its transactions

The lawsuit filed by the SEC alleges that Ripple’s sale of its native cryptocurrency XRP was an ongoing $1.3 billion sale of an unregistered security. The case is still in the pretrial discovery phase, and a conclusive result may take a long time to materialize. 

The Rosen Law Firm alleges that MoneyGram made false and misleading statements that failed to disclose that the XRP, the crypto coin is used as part of its partnership with Ripple, was viewed by the US SEC as an unregistered security, therefore unlawful. 

Suppose the US SEC enforces securities laws against Ripple and the XRP. In that case, MoneyGram will lose a profitable stream of market development fees critical for its financial success throughout the period as mentioned earlier. As a result, Rosen says that MoneyGram’s public statements were ultimately false and misleading at all relevant times, and when the truth came out, the investors suffered damages. 

Ripple and MoneyGram’s partnership was based on the money transfer giant using XRP for its settlement services since 2019. MoneyGram earned $61.5 through these market development fees since they initiated the partnership.

Ripple at a Good Position as Gary Gensler Is Nominated as SEC Chief

Ripple’s long wait has come to an end as Gary Gensler appears for his highly anticipated nomination hearing as the next chairman of the United States Securities and Exchange Commission before the United States Banking Committee. 

This comes when Ripple and two of its top executives face a high-profile lawsuit against the regulatory commission. In a joint statement from the SEC and Ripple, Ripple said they could not settle with the previous US SEC administration under Jay Clayton’s leadership. At the same time, Ripple Labs assured its investors with hopes for a quick settlement with the US SEC through the prospect of a clean slate with Gary Gensler once he takes over the regulatory commission. 

Caption: XRP investors incurred losses since the SEC filed its lawsuit

The hearing document pre-released yesterday may be considered as another glimmer of hope that Gary Gensler would be receptive to a swift resolution of the lawsuit against Ripple, as well as the legal uncertainties that currently surround cryptocurrencies in the United States. 

While Gensler did not directly mention cryptocurrencies in his opening statement, he alluded to them and explains that, nowadays, the financial market is undergoing a significant transformation that benefits from emerging technologies. He also acknowledges that rules should also change with them and that he believes that financial technology can be used for good.

However, he emphasized that this can only be done if the SEC continues to harness the SEC’s core values as it services the investors, issuers, and the public.  He points out that Congress created the US SEC to protect investments and maintain a fair, orderly, and efficient market to facilitate capital formation. 

He notes that this can only be done if the SEC has “clear rules” for “novel financial instruments.” Otherwise, the people will be harmed. 

However, the true meaning behind his statements is anyone’s guess and doesn’t necessarily allude to the massive losses the XRP investors experienced since the lawsuit went public.

XRP Bulls Prepare For Resistances Towards the $0.47 Key Hurdle

The XRP/USD trading pair eases after settling at a low of $0.4216 on early Monday and now trading at $0.4401. This is a significant recovery considering what the coin has gone through in the recent months. The legal problems for the coin have been compounded by the recent red the whole crypto market saw last week.

With the momentum indicator for the coin favoring its recovery, Ripple buyers are confronting a 61.8% Fibonacci retracement comparable to the January 27 to February 1 upside, which saw the cryptocurrency trade at around $0.4400. However, this may be challenged by the upper line of the falling channel that has been present for a week and the 200-bar SMA. These two resistances are at $0.4525 and $0.4655 respectively. 

Caption: The Ripple XRP struggles to recover amidst its legal woes 

The upside for the XRP/USD trading pair may remain doubtful at $0.4655, but a sustained bull run will definitely bring the price up to $0.5000. A bull run with a great momentum may even being the XRP past the one-month-old resistance line at $0.6150.

On the flip side, if the bulls fail to reach key supports, the stated horizontal support of $0.3950 will precede the support line of the immediate channel at $0.3810, and push the coin immediately downwards. 

Further loses below the $0.3500 levels, will probably result to the coin sliding further down towards the January 2021 lows at $0.20. This will validate the sellers who completed their transactions from February 1 to February 21. 

Regardless, any developments would be less likely to be please even if upside corrections were to happen for the coin. 

This is further compounded by the lack of a conclusive results regarding the lawsuit filed by the US Securities and Exchange Commission against Ripple and two of its top executives. Also, the increasing number of exchange and companies that have severed ties with the coin is making its chances for recovery bleak. 

Ripple XRP Price Slides 22% as its Partnerships are Put on Halt

Ripple XRP and other cryptocurrency assets are in the red as they experience paring losses against the US dollar. Every crypto asset went through a loss this week, with the XRP finding itself down 22% since last week. 

This coin weighed down further by the United States Securities and Exchange Commission (SEC) lawsuit against Ripple and two of its top executives. The court hearings in the coming days may also affect the Ripple’s core business, especially its On-Demand Liquidity (ODL).  This is because of the SEC’s claim that the XRP is a security. 

Numerous exchanges have already stopped trading the Ripple XRP on their platform until it finds clarity regarding its classification. Most recently, MoneyGram also announce that they will not use the XRP for its cross-border transactions for the first quarter of 2021.

Caption: Cryptos are in the red and XRP got it worse

After partnering with Ripple and receiving the company’s investment and getting a new lease in life, the money transfer giant suspended its relationship with Ripple, the firm behind the On-Demand Liquidity service, and not the Ripple Labs, the issuer of the partnership.

A few days after the SEC amended their initial lawsuit against Ripple, MoneyGram said they will no longer use the XRP for cross-border transactions. This partnership used to involve using the XRP through Ripple’s ODL to transfer money to different countries with added security and reliability. 

These things contributed to XRP trading within a bear breakout pattern, where the sellers are in control on the daily chart. Judging from the alignment of the sell bars and the lower BB, it suggests a strong momentum of sell pressure for the coin.

Considering the bearish pattern the coin is showing, every high from now will be an opportunity for XRP holders to sell their assets. But, if bulls fail to regain the token’s previous high at $0.65, it would be disastrous for the token, and could even slide the XRP back to $0.20.

XRP Price Continue to Fall as its Legal Battle Remains Uncertain

The price of Ripple’s XRP settles down from its intraday high of $0.4258 and currently trades at $0.4193. As of writing, the coin’s trading volume was around $3,789,977,720 since the week started, but it is still down by 0.51% compared to its last observed price on Sunday. Regardless, it is still the 7th largest cryptocurrency in terms of market capitalization. 

The lawsuit against Ripple may have caused this drop in interest and price for the cryptocurrency. Along with two of its top executives, the company is facing a lawsuit filed by the United States Securities and Exchange Commission where the regulatory body alleges that Ripple sold its token as a security. This is something that is considered illegal without the approval of the SEC.

Caption: XRP continues to fall as companies cut ties with Ripple

The cryptocurrency community expects the case to be long and drawn out. Numerous exchanges have severed their ties with Ripple in the two months since the lawsuit was announced to the public, with MoneyGram being the latest company to announce that it will be halting their partnership with Ripple and XRP. 

MoneyGram canceled the partnership with Ripple immediately after the SEC filed the charges against Ripple, wherein they added a few amendments since the initial announcement. This is in light of the issue that MoneyGram used XRP for its cross-border transactions that allowed it to save money on foreign exchange costs. The cancellation of the partnership between the two leaves MoneyGram looking for a new strategy for these transactions.

Regardless, MoneyGram Chief Financial Officer Larry Angelilli sees no reason not to continue with the partnership once the case is resolved and Ripple prevails. However, he notes that this will take a long time.

Ripple XRP will likely continue to suffer the brunt of losing its partnership and being delisted from bigger exchanges. This will ultimately be a major loss for Ripple XRP unless they can win against the SEC or turn the coin around.

XRP/USD Price Continues to Slide as it Consolidates to $0.41

The price for XRP/USD is currently correcting downwards after hitting the $0.44 resistance level. At the same time, Bitcoin is trading below $44,000 and is impacting the overall trading within the industry. Multiple coins are exhibiting an intraday dip and bearish slide, along with a significant lack of support. 

On the other hand, XRP’s daily chart reveals that the coin is correcting downwards towards the channel’s lower boundary. It failed to hit resistance levels and is moving towards the $0.40 major support. Regardless, once the coin regains momentum, the coin should bounce back and retest previous resistances.

Caption: The price of XRP falls as the cryptocurrency market dips

As of writing, the technical indicator RSI (14) is facing south with its signal line below the 45-level. If the bulls manage to prevail over the bears, the XRP price should bounce back to moving averages and rally towards the $0.55, $0.60, and $0.65 resistance levels. However, if bears continue pushing the crypto coin’s price downwards, the price should hit low and meet with support levels at $0.30, $0.25, and $0.20.

If these metrics were to be compared with Bitcoin, the Ripple XRP is trading and ranges within acceptable channels since the year began. For now, the XRP/BTC is trading at 918 SAT and expects to break below the current lower boundary of the channel. The bulls and bears of the cryptocurrency trading pair are struggling as they both try to dominate the market. 

However, should something else happen, like the market attempting to fall below the channel, the next key support level would be the 500 SAT and below. Meanwhile, if the bulls prevail and turn the coin bullish, a possible rise could take the cryptocurrency to resistance levels above 1500 SAT. 

Regardless, the cryptocurrency is staying indecisive as its price continues to move sideways, as seen from the technical indicator RSI (14).

Ripple vs. SEC Will be Different from Kik’s Defeat, Says Hogan

Jeremy Hogan, a well-known lawyer among the XRP community members, posted a video talking about the fulcrum in the United States Securities and Exchange Commission (US SEC) lawsuit against Ripple and two of its executives. 

Careful to not give legal and financial advice, he mentioned how Ripple “dodged a bullet”.   He also discussed how complex the judges’ roles would be in this litigation because of the very broad area of the law that it covers. 

The case between the US SEC vs. Kik Interactive illustrates this point clearly. In late-October 2020, New York Judge Alvin Hellerstein ruled Kik’s cryptocurrency was a security and that the SEC has won the case. 

Caption: Ripple vs. SEC judge more interested and understand it better

Hogan expressed his relief about the fact that Hellerstein is not the judge for Ripple’s legal battle. The said judge is in his 80s and, according to court transcripts, is not familiar with what blockchain-based tokens are, nor does he know what a distributed ledger is. 

Hogan was very keen on the US District Jude Analisa Torres’ choice of words during Ripples pretrial conference. He noticed that the 61-year-old Harvard graduate was careful with her terminologies, noting that she used both the SEC’s preferred term of “digital asset” and Ripple’s “cryptocurrency. This may mean that she understands the difference and understands what the case is all about. 

As Hogan previously mentioned, this was not the case in the lawsuit between Kik’s and the SEC. Hellerstein reportedly asked the SEC lawyers regarding previous court decisions as to the basis for his ruling. However, the SEC has spent the time to work on from 2017 to 2019 to “put together this case authority”. 

According to Hogan, this meant that when the judge asked for prior judicial decisions, the SEC was prepared with six or seven cases that favour their case. However, with Analisa Torres, Hogan has a feeling because she seems more interested and curious about the case itself.

Ripple XRP Is Poised for Volatility as it Prepares for a Surge

The price of the Ripple XRP on the charts is showing a bullish pattern that will bring it over the $1.00 mark despite the major legal troubles Ripple is facing against the US Securities and Exchange Commission.

As of recently, the cryptocurrency community is closely watching out for developments on the lawsuit filed by the US SEC against Ripple and two of its top executives. This legal battle puts the XRP at risk of being labeled as a security. On the other hand, stablecoin is thought to have a good chance of profiting for its investors and speculators by one of the most well-known technical analysts in the industry.

Caption: Ripple XRP is ready for an enormous upswing, says analyst

40-year-old trading veteran Peter Brandt has recently talked about the XRP, and the inverse pattern “head and shoulders” is presented on the 12-hour chart. The cryptocurrency is also creating the right space and preparing to form a bullish pattern for the coin. However, the chances of this happening for the coin is arguable at the moment. 

Nonetheless, the analyst stated that he prefers not to trade securities of OTC and emphasized that the XRP might be a viable choice if he ever decides to invest in the coin. He notes a bullish desire that may enable the cryptocurrency to conclude past the pattern’s neckline at $0.66 and may result in a 74% upswing for the XRP.

Additionally, the token will surge to a new high for the year at approximately $1.15 based on the inverse “head and shoulders” pattern. It is an optimistic aim determined by measuring the distance from the neckline to the head that may push the price upwards from the breakout point. 

However, if the XRP fails to fulfill this bullish desire, the crypto may fall significantly and conclude at $0.20 after an enormous correction.