- SEC decides to appeal Ripple case; uncertainty continues for XRP, affecting its price negatively by nearly 6%.
- Ripple’s chief lawyer, Stuart Alderoty, expected the SEC’s appeal but remains confident in XRP’s legal status.
The SEC has officially decided to appeal the Ripple case, confirming rumors that had been circulating for weeks. This appeal was lodged just before the deadline on October 7, keeping the cryptocurrency community in suspense until the final moments.
Last year, Judge Analisa Torres of the United States District Court for the Southern District of New York ruled that secondary sales of XRP are not securities, which was initially viewed as a victory for Ripple.
However, the delineation between programmatic and institutional sales continues to spark debate.
The speculation surrounding the SEC’s potential appeal has been a topic of discussion among analysts, with Ripple’s chief lawyer, Stuart Alderoty, expressing no surprise at the move. Alderoty remains confident that this legal challenge will not alter the status of the XRP token.
What if the SEC appeals the @ripple case? @s_alderoty @JWVerret pic.twitter.com/xoaAAewjcy
— Digital Asset Investor (@digitalassetbuy) August 15, 2024
Nonetheless, the SEC’s decision to appeal represents a setback for XRP holders who had hoped the conclusion of the Ripple case would remove the ongoing uncertainty affecting them.
Following the appeal announcement, XRP’s price experienced a decline, dropping nearly 6% and making it one of the poorest performers among the top 100 cryptocurrencies, as per the latest data from ETHNews.
XRP is currently trading at $0.56. This downturn reflects the market’s reaction to the SEC’s continuing legal actions against Ripple, which some investors fear could extend well into the future. It is important to note that any changes to the existing ruling are not expected until at least 2026.
In a related development, Bitwise, a major crypto asset manager, has filed to launch an XRP-based exchange-traded fund (ETF). This suggests that despite the legal challenges, there is significant interest in XRP from institutional investors, which could potentially stabilize its market position in the long term.
Today we filed an initial registration statement on Form S-1 for a new Bitwise XRP ETP.
“We believe blockchains will usher in new apolitical monetary assets and permissionless applications for the 21st century,” said Bitwise CEO Hunter Horsley. “We aim to help investors access…
— Bitwise (@BitwiseInvest) October 2, 2024
The ongoing legal proceedings and the SEC’s latest appeal undoubtedly cast a shadow over XRP’s immediate future. However, the enduring interest from financial entities indicates that XRP remains a relevant and closely watched digital asset within the broader cryptocurrency market.
As of today, the price of XRP is $0.53275, reflecting a 1.09% drop. The broader performance of XRP has been volatile, with a 6.10% decrease over the past month and a 13.39% decline year-to-date. Despite its long-term growth of over 110% in the last five years, XRP has faced significant headwinds, notably its legal battle with the SEC
