The legal battle between Ripple and the SEC takes a new turn when the US regulator finally files a Form C two weeks after filing the notice of appeal. Bitwise also updated its S-1 registration with the SEC for approval of its XRP ETF application.
Ripple (XRP) has been on the headlines in recent days for a variety of reasons, from its recent Form C filing by the U.S. Securities and Exchange Commission (SEC) to Bitwise’s XRP ETF update and possible IPO launch. It’s been lively on the line. This article reviews some of this news with a detailed report.
SEC File Form C
As we reported yesterday, October 18th, the SEC finally succeeded in filing a civil appeal pre-argument statement (Form C) with the Second Circuit Court of Appeals. As explained, the filing aims to challenge a 2023 ruling by Judge Annalisa Torres that clarified that programmatic sales of XRP on digital asset trading platforms do not violate federal securities laws. I’m here.
Another target of the SEC’s appeal is the private sale and offer of XRP by Ripple executives Brad Garlinghouse and Chris Larsen. The agency is also objecting to the ruling, which found that the distribution of XRP to employees and others does not constitute a securities violation. Meanwhile, Ripple plans to file a cross-appeal next week. For outspoken legal expert Jeremy Hogan, the SEC’s appeal is just a “chicken move.”
what is my favorite thing? This appeal is about money. If Ripple loses, the injunction could be changed, but only indirectly (with respect to compliance).
Update your XRP ETF application bit by bit
CNF recently revealed that Bitwise has filed a Spot XRP ETF application with the SEC. According to the latest report, the asset manager corrected its filing by updating its S-1 registration. Our research shows that the latest updates improve custody arrangements, trust structures, and how shares are created and redeemed.
BREAKING: Bitwise file updated $XRP ETF S-1 form pic.twitter.com/7zMRyd9jvx
— Crypto Briefing (@Crypto_Briefing) October 16, 2024
Based on the reports at our disposal, the XRP custodian is intended to store the trust’s assets in cold storage. This means that only small amounts are moved to hot storage. Custody agreements also ensure that assets are kept separate from the custodian’s other holdings.
According to reports, the new structure will streamline the procedure for generating and redeeming shares in blocks of 10,000 units. Bitwise also hired a prime execution agent to ensure short-term funding in the form of trade credits. On top of that, he ensures that XRP purchases across multiple trading platforms are fully facilitated.
Possibility of Ripple IPO
Ripple’s initial public offering (IPO) has been in the news for a while. However, Ripple boss Brad Garlinghouse revealed that the team has been considering the idea for some time, sparking a huge buzz around the idea. He said the option remains open and could be part of an effort to preserve shareholder liquidity and the company’s valuation. Meanwhile, Garlinghouse believes that an IPO is not currently a high priority on Ripple’s agenda.
Against this backdrop, XRP is currently trading at $0.54, down 6% in 30 days and still struggling to regain the $0.55 level.
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