XRP News Today: Court Ruling on Kraken Lifts XRP – Will SEC Appeal Ripple Case?

XRP Briefly Touches $0.63 on the Kraken Ruling

On Saturday, August 24, XRP advanced by 0.25%, following a 2.24% gain from the previous day, closing at $0.6130. XRP rose to a high of $0.6312 before retreating.

SEC vs. Kraken: Court Ruling Provides Temporary Boost for XRP

On Friday, August 23, Judge William Orrick denied Kraken’s Motion to Dismiss the SEC’s allegations that 11 cryptos are traded as investment contracts.

Kraken Chief Legal Officer Marco Santori hailed the ruling as a win, stating,

“Fundamentally, the Court in Kraken’s case made the same distinction as in the Ripple case: A token isn’t a security, but agreements around a token could be.”

Santori added,

“The SEC unqualifiedly lost on this “tokens are securities” theory, and will not be permitted to rely on it going forward. Instead, it will need to prove, for every alleged transaction on Kraken, that the Howey Test factors are satisfied. They aren’t, and we look forward to proving this in discovery. Kraken will fight and Kraken will win.”

SEC vs. Kraken: The Charges

In November 2023, the SEC charged Kraken, alleging it acted as a broker, dealer, exchange, and clearing agency for what it labeled crypto asset securities without registering with the agency.

The SEC argued that certain crypto assets, traded on Kraken fall under the definition of securities because Kraken offered and sold them as investment contracts, first by their primary issuers and then by Kraken.

Kraken contended that the SEC cannot demonstrate an ongoing link between crypto issuers and a Kraken customer, and therefore, these transactions do not constitute investment contracts under Howey.

Investment Contracts, Howey, and SEC Implications

Judge William Orrick addressed the issue of investment contracts, citing US case law:

“Howey uses the terms ‘contract, transition, or scheme,’… leaving open the possibility that the security is not formed in one neat, tidy certificate, but a general scheme of profit-seeking activities. […] That principle is well-settled: Investment contracts are not limited to actual contracts.”

Pro-crypto lawyer James Murphy, known as MetaLawMan, commented on the ruling, stating,

“Interestingly, the Judge specifically aligned himself with the reasoning of Judge Torres in the Ripple case on a number of points.”

Murphy concluded,

“My overall impression is that the Judge felt that the SEC did satisfy the requirements of Howey at this early stage, but he is not necessarily convinced that the SEC will ultimately be able to prove sufficient facts to show that these tokens actually traded as investment contracts on Kraken.”

The Kraken case could fuel more uncertainty for investors as they consider the prospects of an SEC appeal against rulings in the Ripple case. Uncertainty may affect XRP demand.

XRP Price Trends

Price trends remain sensitive to SEC plans to appeal and ongoing activities. XRP could climb to $1.00 if the SEC decides against challenging rulings in the Ripple cases. Conversely, an appeal could see XRP drop below $0.40.

Investors should remain alert as appeal-related chatter will likely influence XRP price trends. Stay updated with our latest news and analysis to manage your exposure to XRP and the broader crypto market.

XRP Price Action

Daily Chart

XRP hovered comfortably above the 50-day and 200-day EMAs, sending bullish price trends.

A breakout from the Saturday high of $0.6312 could support a move to the August 7 high of $0.6434. Furthermore, an XRP return to the August 7 high may give the bulls a run at the $0.6609 resistance level.

SEC vs. crypto case-related news requires consideration.

Conversely, a drop below $0.60 could give the bears a run at the $0.5739 support level. A fall through the $0.5739 support level may bring the 50-day and 200-day EMAs into play.

With a 14-day RSI reading of 57.60, XRP may break above the $0.6609 resistance level before entering overbought territory.