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Cryptocurrency News Articles
What’s Next in Ripple vs SEC Case After Appeal Notice, and How Will It Affect XRP Price?
Oct 10, 2024 at 06:15 pm
In a video titled “The SEC Appeal: What’s Next?”, the crypto analyst discusses the ongoing Ripple case and the SEC’s appeal with insights from Christy
A crypto analyst known as “Doge2014” has shared his thoughts on the latest developments in the ongoing Ripple case, following the SEC’s filing of an appeal notice, in a recent video analysis.
The analyst provides a quick summary of the key takeaways from Judge Torres’ ruling in the case, highlighting the following points:
Only Ripple’s institutional sales of XRP were deemed to be unregistered securities. XRP itself was not classified as a security, and retail sales not involving Ripple were also exempt from registration.
There were no victims or losses for the institutional investors, and no fraud was established by the SEC.
As a result, the court ordered Ripple to pay a civil penalty, but no disgorgement was required.
Doge2014 also highlights James Murphy’s anticipation of the SEC’s appeal, given their previous expression of discontent with the ruling. The SEC has now filed their notice, officially initiating the formal appeal process. They have 14 days to outline the specific legal issues that they are contesting.
The analyst notes that Murphy has been closely following the case and anticipates that the SEC may challenge the decision that Ripple’s sales on exchanges were not considered investment contracts. Additionally, the SEC is likely to contest the lack of disgorgement, considering the absence of proven losses among the institutional investors who purchased XRP.
“The ruling created a conflict between circuit courts, and if the SEC loses again, they might seek an en banc hearing or escalate to the U.S. Supreme Court,” said Murphy.
The analyst also mentions that Ripple is considering a cross-appeal, which would be filed in response to the SEC’s appeal. Murphy strongly supports this move, arguing that the court should be able to rule on whether institutional sales should be viewed as investment contracts or wholesale transactions.
“Institutions buying XRP in bulk to resell it on exchanges are not investors in Ripple. How can this be an investment contract?” said Murphy, arguing against the investment contract argument for institutional sales.
“They are not interested in Ripple’s profits or performance. They are buying XRP at a wholesale price and reselling it at retail. This is a commodity transaction, like buying and selling barrels of oil or bushels of wheat.”
Once the SEC files their brief, outlining the issues they are appealing, Ripple will have two weeks to respond. The entire appeal process is expected to take over a year, with a potential final decision being announced in early 2026. However, external factors, such as amicus briefs and congressional interventions, could further delay the proceedings.
The analyst highlights the upcoming U.S. election, which could impact SEC leadership and regulation strategies. A change in leadership might shift the SEC’s approach to crypto regulation, potentially leading to settlements in ongoing cases like Ripple’s.
“A settlement would be a faster way to conclude the case and might be in the best interest of both parties, considering the time and resources being expended on the legal battle,” said the analyst.
As XRP holders eagerly await the next developments in the case, they are also keeping an eye on the digital asset’s price movements. The analyst notes that XRP’s price has been consolidating sideways over the past few months, with expectations that this trend may continue.
Despite past bull markets, XRP has not benefited significantly, and the ongoing legal issues could be hindering its performance, according to some traders.
A report from AltFINS suggests a bearish short- and medium-term outlook for XRP price, yet some metrics indicate a potential long-term rally. Here are some key points from the analysis:
The price is in an uptrend, recently hitting $0.57 but pulling back to $0.50. The nearest support is at $0.50, resistance at $0.57 and $0.67.
While momentum is bearish, signs suggest a potential upswing may be on the horizon.
A bearish divergence from the uptrend began in early February.
The RSI is in the bearish zone, and the Stochastic is also bearish, but both indicators are showing signs of potential bullish momentum building up.
suggesting a potential rally in the coming months.
As the legal developments continue to unfold and XRP’s price movements are closely monitored, we follow the latest updates and analysis to keep you informed.
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