As a seasoned researcher with years of experience tracking the cryptocurrency market, I find myself once again entrenched in the tumultuous world of Ripple (XRP). The recent appeal by the SEC against the court’s decision in the Ripple lawsuit is a familiar dance we’ve seen before.
On October 2, Wednesday, the U.S. Securities and Exchange Commission (SEC) submitted an “appeal notice” to the Second Circuit Court of Appeals, a day before the October 7 deadline. As anticipated, this move led to a significant drop in the price of XRP, causing it to plummet nearly 11%, reaching levels around $0.5375. Here’s a breakdown of its current status:
In July 2023, Judge Analisa Torres made a groundbreaking ruling, ordering Ripple to pay a settlement worth $125 million due to violations of federal securities law in the sale of XRP through institutions. This penalty was much lower than the $2 billion that the securities regulator had initially proposed.
Speaking on yesterday’s development, the SEC spokesperson said:
In the Ripple case, we hold the opinion that the district court’s ruling contradicts long-standing Supreme Court rulings and securities regulations. We eagerly anticipate presenting our argument to the Second Circuit.
As a researcher delving into the intricacies of the Ripple lawsuit, I’ve noticed an interesting twist in the SEC’s recent appeal. According to Eleanor Terret from Fox Business, the SEC’s “notice of appeal” refers to August 7 as the day of the ‘final judgment’. Yet, it remains unclear which specific aspects of the case the regulatory agency plans to contest.
The appeal could target either the court’s ruling on programmatic sales from July 2023, the amount Ripple was ordered to pay for institutional sales as of August 7, or both. Further details on the SEC’s specific appeal points are expected to emerge soon.
Ripple Prepares for a Cross-Appeal against the SEC
In response to yesterday’s events, Ripple’s Chief Legal Officer, Stuart Alderoty, expressed his disappointment and hinted at the possibility of a cross-appeal by the blockchain. “The SEC’s decision to appeal isn’t shocking,” Alderoty commented.
He also pointed out that the SEC’s appeal represents an escalation of a “full humiliation” for the regulatory body. Moreover, he underscored the court’s dismissal of the SEC’s allegations that Ripple had acted irresponsibly, stressing the lack of deceit, harmed parties, or monetary damages in this case.
Additionally, Alderoty criticized the securities regulator for resorting to “legal battles” under Gary Gensler’s leadership. In essence, he stated that the SEC’s lawsuit has been illogical and off-target since its inception, and they are prepared to demonstrate this once more in the appellate court.
Brad Garlinghouse, CEO of Ripple, also expressed his thoughts on the matter, saying: “If common sense prevailed with Gensler and the SEC, they would have concluded this case a while back.” Garlinghouse argued that the SEC’s continued involvement hasn’t safeguarded investors, but instead undermined the agency’s credibility and standing.
Additionally, he demonstrated the company’s determination to continue arguing the case. To clarify, we are prepared to battle it out in court for as long as necessary. However, it’s crucial to note that XRP‘s classification as a non-security is current law – and this remains unchanged despite this ill-conceived and enraging appeal, as stated by Garlinghouse.
Following a period of growth last week, the XRP price has yet again fallen below the vital threshold of $0.60. Moreover, the widespread market downturn and the collapse in altcoin values have intensified the bearish trend.
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2024-10-03 11:04