XRP Surges as Whales Keep Accumulating

XRP has surged past $2.50, jumping 14% as investors celebrate a big legal win for Ripple. The SEC dropping its appeal has lifted a major cloud over XRP's future

After a major legal setback, the SEC has dropped its appeal of a lower court ruling in a case against Ripple.

What Happened

The U.S. Securities and Exchange Commission has dropped its appeal of a lower court ruling in a case that could decide whether XRP is a security.

A judge ruled in July that the SEC failed to provide sufficient evidence to support its claims that Ripple sold unregistered securities through its cryptocurrency XRP. The agency had argued that Ripple’s token offerings to institutional investors should have been registered with the SEC.

However, Judge Manuel Mendez ruled in favor of Ripple, stating that the SEC’s case was not strong enough and that the agency had failed to meet the standard of proof.

The SEC subsequently announced its decision to drop the appeal.

“In light of the Supreme Court’s decision in SEC v. Total Securities, and after careful consideration, the SEC has decided to withdraw its appeal of the District Court’s decision,” an SEC spokesperson told Blockworks.

The Supreme Court ruling, which involved a case about municipal bonds, set a higher standard of proof for SEC cases.

The SEC had argued that its case against Ripple should be judged according to a lower standard of proof, but the Supreme Court ruling could have implications for future crypto cases.

The SEC is now expected to focus its efforts on other pressing matters, such as the growing DeFi sector and the emergence of new crypto technologies.

Despite the setback, the SEC is still actively pursuing enforcement actions against cryptocurrency companies that violate securities laws.

Earlier this year, the SEC reached a settlement with crypto exchange Gemini over the sale of unregistered securities.

The agency is also investigating several other crypto firms, including Coinbase and Circle.

The SEC’s decision to drop its appeal is a major victory for Ripple and the broader cryptocurrency community.

The case had been closely watched by crypto investors, who saw it as a litmus test for the future of cryptocurrency regulation in the U.S.

With the case now concluded, the focus will shift to other areas of crypto regulation, such as the pending approval of a spot Bitcoin ETF.

After a tumultuous few months, Bitcoin and the broader crypto market are showing signs of recovery.

As the FOMC meeting drew to a close, analysts at FX Empire noted that XRP, the third-largest crypto asset, is showing signs of a breakout.

The token has hit $2.57 in recent trading, and many are wondering if it can break the $3 mark—a level it hasn’t seen since the 2017 bull run.

It bears noting that this price increase also coincides with the SEC’s decision to drop its appeal against Ripple on Wednesday.

After a long-running legal battle, the U.S. appeals court has ruled in favor of the lower court, which dismissed the SEC’s case for lack of evidence.

This marks a major victory for Ripple and could have broader implications for the crypto industry.

In March, the SEC lost its case against Ripple in a lower court. The case began in 2020 when the SEC sued Ripple for allegedly selling unregistered securities through its cryptocurrency, XRP.

The SEC argued that Ripple’s token offerings to institutional investors should have been registered with the SEC. However, Judge Manuel Mendez ruled in favor of Ripple, stating that the SEC’s case was not strong enough and that the agency had failed to meet the standard of proof.

The SEC then announced its decision to appeal the ruling to a higher court. However, the Supreme Court ruling in the case of SEC v. Total Securities, which involved municipal bonds, set a higher standard of proof for SEC cases.

This ruling could have implications for the SEC’s ability to pursue crypto cases, as the agency had argued that its case against Ripple should be judged according to a lower standard of proof.

The Supreme Court case arose from a dispute over the statute of limitations for SEC claims.

In a 5-4 decision, the Supreme Court ruled that the statute of limitations begins when an investor has notice of the alleged fraud.

This is a departure from the lower court ruling, which had said the statute of limitations begins when the SEC itself becomes aware of the alleged fraud.

The Supreme Court’s decision is a setback for the SEC, which had been seeking to expand its authority to pursue crypto cases.

The agency argued that it should be able to bring claims even if investors are not aware of any fraud.

However, the Supreme Court ruled in favor of the investors, setting a higher standard of proof for the SEC.

This ruling could make it more difficult for the SEC to win future crypto cases.

The SEC is now expected to focus its efforts on other pressing matters, such as the growing DeFi sector and the emergence of new crypto technologies.

Despite the setbacks, the SEC is still actively pursuing enforcement actions against cryptocurrency companies that violate securities laws.

Earlier this year, the SEC reached a settlement with crypto exchange Gemini over the sale of unregistered securities.

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