The legal battle between Ripple and the United States Securities and Exchange Commission (SEC) has taken a new turn. On August 7, 2024, Judge Analisa Torres issued a ruling that the SEC has now decided to appeal. This notice of appeal, filed in the court of appeal for the second circuit, involves Ripple and its leading figures, CEO Brad Garlinghouse and executive chairman Chris Larsen. The outcome of this appeal is poised to have significant implications for Ripple and its digital currency, XRP.
SEC’s Appeal and Its Impact on Ripple and XRP’s Future
The SEC’s decision to appeal has sent ripples through the crypto community and market analysts are keenly observing its potential impact on XRP. This move comes at a critical juncture as an anticipated altcoin season looms on the horizon. Historically, XRP’s performance was hampered in the 2021 crypto bull run due to the ongoing legal battle with the SEC, which has now stretched over three years.
XRP’s Current Market Position
From a technical analysis perspective, XRP’s market position appears precarious. The cryptocurrency has been compared to the likes of Litecoin (LTC) and Monero (XMR), which have seen their market activity dwindle. XRP, with a substantial market cap of approximately $53 billion and daily trading volumes averaging $3.3 billion, has reverted to a macro triangular consolidation pattern. This follows an earlier breakout that failed to sustain momentum. The fact that XRP’s price has slipped below the 50 and 200 Moving Averages (MA) indicates that bearish sentiment is gaining traction.
SEC’s Credibility Under Scrutiny
The decision to continue pursuing the Ripple case has attracted criticism, particularly from the XRP community. CEO Brad Garlinghouse has been vocal in his condemnation, arguing that the SEC’s actions have not only failed to protect investors but have also undermined the agency’s credibility. He asserts that the SEC’s persistence in this case is a misallocation of taxpayer resources.
Garlinghouse emphasized, “When the SEC tried unsuccessfully to file an ‘interlocutory appeal,’ they made it clear they had no intention of challenging XRP’s status as a non-security.”
Ripple’s Response and Future Plans
Ripple’s Chief Legal Officer, Stuart Alderoty, has expressed confidence that the appeal will only add to the SEC’s embarrassment, as previous claims of reckless conduct by Ripple were dismissed by the court. Ripple is currently contemplating filing a cross-appeal, which could potentially alter the trajectory of the legal proceedings.
In a related development, the SEC’s internal cohesion seems to be wavering. The resignation of Gurbir Grewal, the longstanding director of enforcement, shortly before the appeal announcement, has raised eyebrows within the agency.
Ripple’s Strategic Advancements
Despite the ongoing legal challenges, Ripple continues to make strides in its business operations. The company is on the verge of launching its stablecoins, named RLUSD, which are backed by fiat currency. This strategic move is intended to bolster Ripple’s cross-border payment solutions and retain institutional clients who might be tempted to switch to competing blockchain platforms offering similar services.
As the legal proceedings unfold, the crypto community remains vigilant, with the SEC’s appeal poised to play a pivotal role in shaping the future of Ripple and XRP.
