XRP News Today: Kraken Ruling Boosts Confidence, But XRP Remains Below Key Levels

XRP Holds Steady Around $0.60 Amid Legal Uncertainty

On Friday, August 23, XRP gained 2.24%, reversing a 0.37% loss from the previous day, closing at $0.6115. XRP underperformed compared with the broader crypto market, which rallied 5.28% to a total market cap of $2.208 trillion.

SEC Appeal – Uncertainty Weighs on XRP

The SEC has remained silent since the final judgment in the SEC vs. Ripple case, leaving XRP below the August 7 high of $0.6434. Investors and Ripple expect the SEC to appeal rulings in the Ripple case.

Ripple Chief Legal Officer Stuart Alderoty raised expectations of an appeal, saying,

“If the SEC were a rational actor, they should just move on from this case. But we all know that, when it comes to crypto, the SEC has proven itself not to be rational. […] So, I wouldn’t be surprised if the SEC does appeal.”

The SEC has 60 days from the final judgment date to file an appeal, and court rulings from other crypto cases could influence the agency’s decision.

SEC vs. Kraken: A Victory for Crypto

On Friday, August 23, Kraken Chief Legal Officer Marco Santori shared a significant court ruling in the SEC vs. Kraken case, saying,

“Today, the Federal Court for the Northern District of California ruled, as matter of law, that none of the tokens trading on Kraken are securities. This is a significant win for Kraken, for the principle of clarity and for crypto users everywhere. It also confirms Kraken’s long-standing position that it does not list securities.”

Santori added,

“Today’s ruling confirms what we’ve been saying all along: the SEC cannot credibly regulate crypto by enforcement. To deliver clarity to the industry, to protect consumers and foster the growth of blockchain technology, Congress must pass a comprehensive market structure framework.”

Regarding the SEC’s continued pursuit of classifying cryptos as securities, Santori stated,

“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.”

Reactions to the Kraken Ruling

Ripple Chief Legal Officer Stuart Alderoty remarked on the ruling, stating,

“Another court, this time in the Kraken case, confirms there’s no such thing as a “crypto asset security.” Bad news for the SEC, whose entire regulation-by-enforcement strategy hinges on that failed premise.”

Pro-Crypto Lawyer Bill Morgan highlighted the significance of the ruling, saying,

“The decision in SEC v Kraken today is another endorsement of Judge Torres’ reasoning in the SEC v Ripple decision that the token itself is not a security.”

SEC vs. Coinbase: Motion for Interlocutory Appeal Ruling

The Kraken ruling may draw the interest of Judge Failla, presiding over the SEC v Coinbase (COIN) case.

In June 2023, the SEC filed charges against Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged Coinbase for the unregistered offering and selling of securities in connection with its staking-as-a-service program.

The case remains ongoing, with the parties awaiting a court ruling on the Coinbase Motion for Interlocutory Appeal. Coinbase asked the court for permission to appeal the court ruling on the Coinbase Motion to Dismiss (MTD).

Regarding the MTD ruling, the court had concluded ‘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.’

Coinbase Chief Legal Officer Paul Grewal made no posts regarding the Kraken ruling. Nevertheless, Grewal and the Coinbase legal team may bolster their case for an appeal by citing the Kraken ruling.

XRP Price Trends

Despite the positive developments for Kraken, concerns about a potential SEC appeal against Ripple continue to weigh on XRP. An appeal could send XRP toward $0.40.

Conversely, XRP could target $1.00 if the SEC does not contest rulings in the case. Legal clarity remains crucial for XRP until Capitol Hill introduces a regulatory framework.

Investors should remain vigilant with appeal-related news likely to affect 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 sat well above the 50-day and 200-day EMAs, confirming the bullish price trends.

A break above the August 7 high of $0.6434 could support a move toward the $0.6609 resistance level. A breakout from the $0.6609 resistance level may give the bulls a run at $0.70.

SEC vs. crypto case-related chatter and SEC activity require consideration.

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

With a 14-day RSI reading of 58.36, XRP may climb to the $0.6609 resistance level before entering overbought territory.