As a seasoned crypto investor with a knack for navigating the ever-shifting tides of regulatory waters, I find myself standing firmly on the shores of XRP, watching the waves roll in and out without much impact on its price. The SEC’s latest move feels more like a ripple (pun intended) in the grand scheme of things for Ripple Labs, but it’s important to keep a close eye on developments.
The filing by the U.S. Securities and Exchange Commission (SEC) for a reversal of an earlier decision in favor of Ripple Labs has little immediate impact on the value of XRP, the digital token associated with Ripple. XRP continues to hover around its current price.
On October 17, the SEC submitted a document known as a “Pre-Argument Statement for Civil Appeal” (Form C) to the US District Court for the Southern District of New York. Essentially, they’re asking the court to reconsider some aspects of the previous decision, not just its outcome. In legal terms, this means that the judge would reexamine how the law was applied in the initial ruling, rather than just reviewing the final verdict.
The core of the SEC’s appeal focuses on whether the district court erred in granting partial summary judgment in favor of Ripple Labs, specifically regarding the company’s sales of XRP on exchanges.
The SEC’s Form C raises questions about Ripple’s distribution of XRP in return for non-cash payment methods, a matter that the regulator believes necessitates further examination under legal guidelines.
Background
After a previous petition was submitted to the Second Circuit Court of Appeals on October 2, the SEC based their legal approach on a precedent set by the US Supreme Court. This initial appeal led to a 11% decrease in XRP’s price, demonstrating the market’s responsiveness to regulatory actions.
After the initial appeal by the SEC, Ripple took action by filing a counter-appeal, aiming to comprehensively address wider legal issues related to the case.
As a crypto investor, I’m keeping a close eye on developments with Ripple, and it’s worth noting that their Chief Legal Officer, Stuart Alderoty, recently shared on social media platform X that the company is making sure to address all legal matters pertaining to the ongoing dispute with the SEC. Specifically, they are focusing on countering the SEC’s claims about Ripple being an “investment contract.
In July 2023, Judge Analisa Torres made a significant decision, mandating Ripple to pay a fine of $125 million to the Securities and Exchange Commission (SEC). Although the judge found Ripple guilty of breaking federal securities laws in its large-scale sales of XRP, this penalty was significantly less than the $2 billion that the SEC had initially demanded.
Ripple Price Movement
It seems that the ongoing argument between the SEC and Ripple is not causing much disturbance in the wider market, as the price of XRP remains relatively stable at approximately $0.5511 as of Friday. Despite this, Ripple’s digital currency has faced numerous hurdles over the past few years, mostly due to its legal struggle with the SEC. In fact, since reaching an all-time high of $3.84 in 2018, XRP has dropped a steep 85%.
Regardless of any turbulence, there’s continued enthusiasm for XRP among institutions. For instance, Bitwise and Canary Capital have recently applied to launch spot XRP exchange-traded funds (ETFs). Some predict that legal challenges might halt these plans, but investors remain hopeful. Additionally, experts like Eric Balchunas from Bloomberg suggest that if Vice President Kamala Harris wins the US presidency, XRP ETFs could prove particularly attractive.
As Ripple and the Securities and Exchange Commission move forward with the next stage of their prolonged legal dispute, it’s clear that a final resolution to this significant courtroom conflict remains some distance in the future.
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2024-10-18 12:38