Lawyer Dents SEC XRP Case, China Lift Ban

This Week in Crypto: Ripple’s Damning SEC Evidence, and Ledger’s Co-Founder Speaks Out

Crypto News: We bring you a summary of what’s happening in crypto this week. And this week, it’s all about the US Securities and Exchange Commission (SEC). Again.

The SEC holds at least 37 cryptos as securities, and pro-Ripple lawyer John Deaton finds incriminating evidence against the SEC’s assertion that XRP is a security.

A former Ledger CEO called the PR behind the recent Recovery feature a «terrible mess,» and the rumor mill speculated that a telecast from China Central Television could fuel a bull market.

On Thursday last week BeInCrypto rounded out the latest list of cryptos, according to the SEC, that satisfy the Howey Test.

While there were some familiar candidates on the list, including XRP, Algorand, and Terra, Filecoin’s inclusion surprised some. The listing stopped Filecoin from creating a trust with Grayscale Investments. Grayscale’s legal team will oppose the ruling.

In other news, the BeInCrypto team reminded investors of the risks of holding assets that are considered securities.

These include penalties, profit humiliation, and lack of liquidity through exchanges delisting the affected tokens. US investors could be locked out of opportunities to invest in Initial Coin Offerings maintained by the SEC as securities offerings.

Former CEO of Ledger Quells PR Nightmare

Last Friday, the former CEO of the Ledger Éric Larchevêque said that the Recover fiasco was not badly handled.

He said Ledger made a «terrible mess» of offsetting PR damage from its new Recovery feature. The subscription service stores users’ seed phrases in case they lose access to the encryption in their Ledger wallet.

The public accused the new feature of violating the principles of trustless crypto.

Larchevêque pointed out that Ledger users had to trust the company to use the product before it launched the Recovery feature.

The former CEO clarified that the project was technically flawless and there was no backdoor.

Crypto News – Social Talk

Courtesy details

Ripple’s Lawyer Gets Damning Evidence Against SEC

Crypto lawyer John Deaton said last Saturday that the discovery of information in a long-lost email could significantly complicate the SEC’s case against XRP issuer Ripple Labs.

Exhibit 220 in the SEC filing argues that XRP cannot be securitized because it does not meet certain criteria of the Howey Test.

The SEC previously alleged that Ripple Labs raised money through the sale of an unregistered XRP security that earned top executives hundreds of millions of dollars.

The email asserted, «reasonable grounds to conclude that XRP does not meet all elements of the Howey Analysis and therefore is not a ‘security’ for purposes of the federal securities laws.»

However, Deaton said an inspector said the comment may have come from lawyers, and not SEC staff.

We’ll know for sure when the SEC releases documents related to former employee William Hinman.

Crypto Market Effects If China Lifts Crypto Ban

The crypto community ended rumors this week that China might lift its crypto ban after China Central Television (CCTV) aired a broadcast mentioning crypto.

The broadcast caused the crypto community to reflect on what restrictive restrictions could do to markets. The link to the crypto broadcast has been taken down.

CCTV Crypto Link
Scratched CCTV Broadcasting Page | Source: China Central Television

Binance CEO Changpeng Zhao said previous bull runs were caused by events such as China Central Television’s broadcast.

BeInCrypto’s Josh Adams said that lifting the ban could increase crypto volatility and raise concerns about money laundering and financial stability. It could also hurt China’s central bank’s digital currency ambitions.

The Chinese government has banned crypto in stages, starting with trading in 2013 and the ICOs in 2017. Its clampdown came down sharpest in 2021 when it banned Bitcoin mining.

Crypto Coin News

In another quiet week, these altcoins stole the show with bullish price action.

Top 10 Crypto includes XRP which is approved by SEC
Top 10 Crypto Performance This Week | Source: BeInCrypto

Render Token (RNDR) surged 15.4% to a new yearly high of $2.95 on May 21st, while KAVA broke out of the $1.10 resistance zone to $1.55 on May 23rd.

Tron (TRX) finally cleared the $0.071 resistance area to a new annual high of $0.080 on May 23. Singularity (AGIX) rose 6.06% to $0.305, while IOTA increased 5.45% on May 22 to reclaim the $0.18 area.

This week in NFT Sales

Sorare’s floor price increased to 0.00299 ETH, while Bored Ape Yacht Club’s floor price fell 46.5% among 48% decay in sales volumes.

BAYC’s market cap continued its nearly two-month downward trajectory to 461,910 ETH.

BAYC Market Cap
Bored Ape Yacht Club Market Cap | Source: Moon Brush

Fidenza #971 by Tyler Hobbs was the highest rate NFT sale with $681,000.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.


All information on our website is published in good faith and for general information purposes only. Any action taken by the reader in relation to the information found on our website is at their own risk.

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