Will crypto lobbyist group’s support for Ripple push XRP price higher?

• Ripple has received support from crypto lobby group Blockchain Association which asked the court for permission to support the giant in its legal battle.
• 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 published its quarterly report and revealed that the giant has less than 50% of the total XRP supply.

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

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Ripple is receiving support from advocates and blockchain lobbying groups

The Blockchain Association, a crypto lobby organization based in Washington, DC, applied for permission to support Ripple as a friend of the court in the SEC v. Ripple legal battle. The US SEC sued payments giant Ripple over its sale of XRP as an unregistered security. Since December 2020, the case has witnessed several procedural motions, and both parties have filed their motions.

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

Many tokens traded in secondary markets do not meet the various principles of the Howey test, a Supreme Court case used as precedent to determine whether an asset is a security. The submission said:

The securities laws do not consider how an asset that may have been issued as a security can exist when it is no longer tied to any kind of investment contract, which is crucial when trying to apply Howey.

The Blockchain Association is not alone in its support for Ripple. Another key group, Investor Choice Advocates Network and SpendTheBits Inc. filed their own amicus brief on Oct. 28, with the court’s permission. In their briefs, these entities argue that the SEC’s definition of “investment contract” is vague and point to efforts invested in determining the SEC’s jurisdiction over crypto.

Ripple has less than 50% XRP supply

Ripple, the largest public holder of XRP published a new quarterly report highlighting that it currently holds less than 50% of the altcoin’s supply. Also, the payments giant only operates four of the 130 XRP validator nodes.

Brad Garlinghouse, CEO of Ripple commented on the tweet saying:

Below 50% – a major milestone! For 10 years, Ripple has focused on using XRP and XRPL in our products for speed, security and scalability for the movement of value. As more customers use XRP in their payment streams, it’s clear that there is real benefit here.

Analysts claim that XRP is oversold

Duncan Baldwin, cryptoanalyst and certified trader evaluated the XRP/USD price chart and noted that the altcoin has recently experienced a decline. XRP has started its recovery and gained 2.5% overnight. Baldwin states that the XRP/USD pair appears locally oversold. As the pair approaches the horizontal support level between $0.42 and $0.43, a rally in the XRP price is expected.

XRP/USD price chart