- XRP Price is eyeing a massive explosion amid the likely end of the Ripple versus SEC feud.
- It remains unclear the direction of the ruling as many conflicting rulings abound in crypto cases.
XRP, the cryptocurrency associated with Ripple Labs Inc., approached the $1 mark on Sunday. This recovery comes amid a potential conclusion of the Ripple legal battle with the US Securities and Exchange Commission (SEC).
SEC vs Ripple: An End in Sight
The inability of the SEC and Ripple to settle their long-standing legal battle has resulted in questions on whether a final verdict is in view this week. As mentioned in our earlier report, Judge Analisa Torres in charge of the case ruled that the sales of XRP are classified as non-security when traded on exchanges.
However, the ruling favored the SEC as the Judge declared XRP an unregistered security to institutional investors. As a result, the SEC demanded a $2 billion penalty on Ripple. Although the company contested the fine, Judge Torres must decide the amount Ripple has to pay and an injunction.
It is worth noting that an injunction may ignite the SEC to appeal against the Judge’s Programmatic XRP ruling. On the other hand, an injunction may lead to the prohibition of XRP in the US, thereby affecting the cryptocurrency’s expansion.
For the first scenario, uncertainty has been raised for an appeal from the SEC due to related court rulings with other crypto platforms. For instance, in the case involving Terraform Labs and Do Kwon, Judge Jed Rakoff declared TerraUSD and LUNA as securities. Prior to this ruling, the Judge criticized Judge Torres’s Programmatic Sales ruling. Judge Rakoff said Judge Torres made a mistake when declaring XRP was not a security when sold on exchanges.
This ruling partially favored Ripple, leaving speculations on a potential appeal from the SEC. However, the SEC’s decision not to appeal may have also been influenced by a ruling in the case between SEC and Binance. Judge Amy Berman Jackson, presiding over the case, ruled against the SEC, arguing that BNB sales did not qualify as a security under the Howey test.
Notwithstanding, the SEC may decide to file an appeal due to a pending ruling in its case with Coinbase. According to our recent report, Coinbase filed a Motion for the Interlocutory Appeal, in April 2024 seeking permission to appeal against the ruling in its Motion to Dismiss (MTD).
Meanwhile, Coinbase submitted the MTD in August 2023, arguing that the SEC doesn’t possess the statutory authority to regulate crypto exchanges. However, Judge Katherine Failla has denied the motion.
A Win for XRP Price
Note that the SEC could abandon its appeal against the Programmatic Sales of XRP ruling if Judge Failla grants Coinbase’s appeal motion. This could have a positive impact on the XRP and the broader crypto market.
Further, XRP could climb above $1 if Ripple avoids an injunction and the SEC drops its plans to appeal. As of this writing, XRP has experienced a 0.5% increase in the past day, to trade at $0.6086. The trading volume and market cap stood at $1 billion and $34 billion respectively.
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