XRP pumps, Ripple’s CEO knocks SEC as Hinman’s statement goes public

• The controversial William Hinman statement has been released to the public.
• XRP price rises as Garlinghouse accuses the SEC of “weaponizing” its power.

The price of Ripple [XRP] increased by 7.94% in the last 24 hours as the much-talked-about William Hinman document went public. Recall that the documents have been one of the deciding factors stalling the judgment of Ripple’s case with the U.S. SEC.

Read Ripple’s [XRP] Price Prediction 2023-2024

The now-released document showed how the then Director of Corporate Finance explained which assets were securities and which were not. 

The cat is out of the bag

Hinman, who headed the trading, investments, and market division at one point, mentioned that assets including Bitcoin [BTC] and Ethereum [ETH] were not security offerings. The statement read,

“Applying the disclosure regime of the federal securities laws to the offer and resale of Bitcoin would seem to add little value.[9] And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions.”

It was because of this statement that Ripple’s CEO Brad Garlighouse argued that the SEC lawsuit against XRP’s $1.3 billion unregistered security offering was null and void. 

Before the public release, Garlighouse tweeted how elated he was about the statement release. Commending the firm’s chief legal officer Stuart Alderoty for his work, he noted that it was “worth the wait.”

Wish I could go in depth now, but we've waited this long (18+ months), I don't want to overstep… suffice it to say @s_alderoty and I believe they were well worth the wait.

— Brad Garlinghouse (@bgarlinghouse) June 12, 2023

For most of the last few months, XRP has been performing considerably well due to speculation that a judgment was near. And in the last 30 days, the token increased by 30.52%.

XRP rises but Gensler gets a knock

On the technical side, the daily chart showed that Chaikin Money Flow (CMF) had increased to 0.25. The CMF increase stood as a clear indication of buying pressure. 

However, since the indicator had crossed 0.20, it meant that XRP might be overbought. Hence, the price could retrace unless accumulation increases.

Additionally, indications from the Exponential Moving Average (EMA) showed that the 9-day EMA (blue) has crossed the 20 EMA (orange).

When this happens, it means that the price is bullish. But if the opposite was the case, then XRP might be set for a potential reversal.

Source: TradingView

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Meanwhile, Brad Garlinghouse commented on the matter again after what happened behind the scenes became public. In his tweet, he accused the SEC of being hellbent on crippling the entire crypto industry.

It’s absolutely unconscionable that a regulator – when presented with so much pushback on what he was about to say / how he compiled this fake “test” in the first place – decided to move forward anyway, and throw an entire industry into chaos. https://t.co/9qzKOiPWsA

— Brad Garlinghouse (@bgarlinghouse) June 13, 2023

While addressing the issue further, the CEO noted the SEC had been misusing its power. He said,

“Seeing the depth to which the SEC has essentially weaponized the lack of regulatory clarity through enforcement actions since this speech was given – it’s no surprise that we can call bluff on their claims to “just come in and register” as nothing but in bad faith.”