XRP News Today: Court Rulings and SEC Appeal Plans Drive Investor Uncertainty

Investor concerns about Ripple’s legal battle with the SEC continued to affect buyer demand for XRP. XRP price trends hinge on court rulings from SEC vs. crypto cases and appeal news.

Monday’s Losses: XRP Hovers Below $0.48

On Monday, June 24, XRP declined by 1.19%. Following a 1.42% slide on Sunday, June 23, XRP ended the day at $0.4740. Significantly, XRP extended its losing streak to three sessions.

Bearish sentiment across the broader crypto market impacted buyer demand for XRP, with bitcoin (BTC) dropping below $60,000 on Monday.

Can the US courts change sentiment toward the crypto market?

SEC vs. Ripple and the Lingering Appeal Threat

There was no SEC v Ripple case-related news to consider at the start of the week. The crypto community awaited updates on the penalty Ripple must pay for breaching US securities laws.

The US courts must also decide whether to impose an injunction prohibiting XRP sales to institutional investors. For Ripple and XRP, the worst-case scenario would be a $2 billion fine and an injunction. An injunction could adversely affect plans to expand in the US.

Nevertheless, SEC plans to appeal against the Programmatic Sales of XRP ruling remain the focal point.

Recently, former SEC Division Chief Kristina Littman poured cold water on expectations of an SEC appeal. Littman believed the SEC would want to avoid the risk of eliciting bad law.

In August 2023, the SEC filed a Motion for Interlocutory Appeal to appeal against the Programmatic Sales of XRP ruling. The August filing highlighted the SEC intent and suggested the SEC will attempt to overturn the court ruling.

However, external forces may also influence SEC plans to appeal against the Programmatic Sales of XRP ruling. The SEC vs. Coinbase (COIN) ruling could dictate whether the SEC could consider filing an appeal.

Can a court ruling from the SEC vs. Coinbase end SEC plans for an appeal?

SEC vs. Coinbase and the Motion for Interlocutory Appeal

Coinbase filed a Motion for Interlocutory Appeal in April, asking the courts for permission to appeal against the Motion to Dismiss (MTD) ruling. 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 Katherine Failla grants the Motion for Interlocutory Appeal, Coinbase could try to overturn the MTD ruling. Coinbase filed the MTD in October 2023, arguing that the SEC lacked the statutory authority to regulate US crypto exchanges.

Since Coinbase filed the Motion for Interlocutory Appeal, the Ethereum developer Consensys announced that the SEC closed its Ethereum 2.0 (ETH) investigation. Significantly, the SEC ended its investigation despite presenting arguments in the Coinbase case that Digital Asset + Ecosystem = Security.

MetaLawMan reacted to the Consensys news, highlighting the ecosystem argument.

Will Judge Katherine Failla consider the Consensys news?

Coinbase could present further arguments to Judge Failla, including the Consensys news and referencing the SEC argument about cryptos and ecosystems. Without a Coinbase filing, Judge Failla will likely consider the facts of the case and the presented arguments in her ruling.

Nevertheless, buyer demand for XRP could return if Judge Failla grants the Motion for Interlocutory Appeal.

A court ruling on the Coinbase Motion for Interlocutory Appeal could come at any time. In the SEC vs. Ripple case, the courts rejected on the SEC Motion for Interlocutory Appeal within two months of the SEC filing.

XRP Price Action

Daily Chart

XRP remained well below the 50-day and 200-day EMAs, affirming the bearish price signals.

An XRP move through the trend lines could give the bulls a run at the 50-day EMA. A break above the 50-day EMA could signal a climb to the 200-day EMA.

SEC activity and SEC vs. crypto case-related updates require investor consideration.

Conversely, an XRP drop below the $0.47 handle could bring the $0.45 handle into view.

With a 14-day RSI reading of 37.62, XRP may return to the $0.45 level before entering oversold territory.