XRP News Today: Awaiting SEC vs. Coinbase Ruling – Could It Boost XRP?

While investors await the court verdict from the SEC vs. Ripple case, a ruling in the SEC vs. Coinbase case could trigger an XRP buying frenzy.

SEC vs. Ripple Takes a Backseat as Mt. Gox Sinks the Crypto Market

On Sunday, July 7, XRP slid by 6.65%. Reversing a 5.64% rally from Saturday, July 6, XRP ended the week down 11.72% to $0.4197. Notably, XRP ended the day at below $0.42 for the first time since March 2023.

There was no SEC vs. Ripple case-related news to influence buyer demand for XRP.

XRP tracked the broader crypto market into negative territory amidst investor jitters about Mt. Gox repaying about $9 billion in BTC to its creditors.

Mt. Gox announced that it had started repaying its creditors, sparking a broad-based crypto sell-off.

For context, Mt. Gox collapsed in February 2014, and BTC holders have been waiting for over ten years to receive payment. The crypto market expects a flood of BTC sales, with Mt. Gox creditors likely to lock in substantial profits earned from the 10-year debacle.

BTC ended the week down 10.89%, with the total crypto market cap falling 11.28% to $2 trillion.

While the Mt. Gox repayments are a crypto headwind, a court ruling from the ongoing SEC v Coinbase (COIN) case could change the narrative.

SEC vs. Coinbase: Pending Ruling on Motion for Interlocutory Appeal

The SEC and Coinbase are awaiting a court ruling on the Coinbase Motion for Interlocutory Appeal. Coinbase filed the Motion for Interlocutory Appeal in April 2024, requesting permission to appeal against the Coinbase Motion to Dismiss (MTD) ruling.

For context, Coinbase filed the MTD in August 2023, arguing that the SEC lacked the statutory authority to regulate crypto exchanges.

Judge Katherine Failla denied, in large part, the MTD, surmising,

“The court concludes that because the well-placed allegations of the Complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered intermediary of securities, Defendants’ motion must be denied in large part.”

If Judge Failla grants the Coinbase Motion for Interlocutory Appeal, the SEC vs. Coinbase case will pause until the appeal process concludes. Successfully overturning the Motion to Dismiss could benefit XRP and the broader crypto market.

Will Judge Failla consider the recent SEC vs. Binance ruling in deliberating the Motion for Interlocutory Appeal?

SEC vs. Binance Ruling Addresses Programmatic Sales and US Securities Laws

In June 2024, Judge Amy Berman Jackson dismissed the SEC claims against Binance that secondary sales of Binance Coin (BNB) tokens qualified as securities under the Howey test.

Significantly, Judge Jackson referenced the Programmatic Sales of XRP ruling, stating,

“The court is inclined to agree with the approach of the court in Ripple Labs, since the ‘it-is-what-it-is’ approach of the SEC appears to be inconsistent with the clear Supreme Court directives […].”

Judge Jackson and Judge Torres disagreed with Judge Jed Rakoff, the presiding Judge in the SEC vs. Terraform Labs case.

In December, Judge Rakoff ruled Terraform Labs and founder Do Kwon violated US securities laws for selling unregistered TerraUSD and Luna. Judge Rakoff also referenced the Programmatic Sales of XRP ruling but for different reasons, stating that Judge Torres had erred in her ruling.

Varying court rulings on crypto classifications as commodities or securities create significant crypto market uncertainty. Another court ruling favoring the crypto industry could provide greater legal clarity in a US regulatory landscape lacking a crypto framework.

Investors must remain vigilant with court rulings pending from multiple SEC vs. crypto cases. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay informed with our latest updates and insights to navigate the crypto market.

XRP Price Action

Daily Chart

XRP sat considerably below the 50-day and 200-day EMAs, confirming the bearish price trends.

An XRP break above the $0.45 handle would support a move to the trend lines and the 50-day EMA. A breakout from the 50-day EMA could give the bulls a run at the 200-day EMA. However, selling pressure could increase at the top trend line. The 50-day EMA is confluent with the top trend line.

SEC vs. crypto case-related updates require investor consideration on Monday.

Conversely, an XRP break below the $0.40 handle could bring the July 5 low of $0.3814 into play.

With a 14-day RSI reading of 31.47, XRP could break below the $0.41 handle before entering oversold territory.