XRP News Today: Massachusetts Primary’s Impact on XRP Price and SEC Appeal

XRP Lingers Below $0.60 Amid SEC Appeal Uncertainty

On Monday, September 2, XRP rallied 3.17%, reversing a 3.32% slide from the previous session, closing at $0.5681. XRP’s gains aligned with the broader crypto market trend, which advanced by 3.25% to a total market cap of $2.032 trillion.

SEC Faces Scrutiny over Crypto Asset Security Classification

The SEC is under increasing scrutiny over classifying cryptos as asset securities.

Ripple Chief Legal Officer Stuart Alderoty referenced an FTX Chapter 11 court filing, stating,

“The term ‘crypto asset security’ is nowhere to be found in any statute—it’s a fabricated term with no legal basis. The SEC needs to stop trying to deceive judges by using it.”

The court filing highlighted the SEC’s reservations about FTX’s plans to distribute stablecoins to certain creditors, saying,

“The Debtors’ portfolio includes crypto asset securities which the Debtors may seek to monetize and/or distribute pursuant to the Plan. […] The SEC is not opining as to the legality, under the federal securities laws, of the transactions outlined in the Plan and reserves its right to challenge transactions involving crypto assets.”

Alderoty received several poignant responses, notably two from members of the pro-crypto legal community.

CryptoLaw cited a ruling from the SEC v Ripple case, which stated,

“XRP, as a digital token, is not in and of itself a ‘contract, transaction [,] or scheme” that embodies the Howey requirements of an investment contract,”

Pro-crypto lawyer Bill Morgan referred to a recent SEC vs. Kraken ruling, saying,

“Judge Orrick, in the SEC v Payward case, wasn’t deceived.”

Morgan quoted an excerpt from the court ruling, stating,

“The SEC should be careful going forward to maintain this distinction. To the extent it tries to argue that the individual tokens that form the basis of transactions on Kraken are investment contracts, or are themselves securities, its argument cannot proceed”

Massachusetts Primary and SEC Appeals

The SEC and Ripple have a 60-day window from the August 7 final judgment to appeal the rulings in the Ripple case.

The result of the Massachusetts primary on September 3 could significantly influence the SEC’s appeal plans.

Senator Elizabeth Warren and John E. Deaton go head-to-head in the primary. SEC Chair Gary Gensler could lose a significant ally on Capitol Hill if John E. Deaton wins.

Deaton represented 75,000 XRP holders in the Ripple case and was pivotal in the favorable Programmatic Sales of XRP ruling. A Deaton win could bolster support for a regulatory framework that fosters innovation while protecting investors. A crypto-friendly regulatory framework could weaken Chair Gensler’s support from Capitol Hill.

Conversely, a Senator Warren win may allow the SEC to continue targeting cryptos until November’s US Presidential Election. Senator Warren has close ties with SEC Chair Gary Gensler and supports the SEC’s regulation through enforcement mantra.

In 2023, Senator Warren introduced the Digital Asset Anti-Money Laundering Act. The bill aims to introduce banking-style regulation that may stifle growth in the US digital asset space.

Last week, Deaton commented on Senator Warren’s stance on cryptos, stating,

“My opponent, Senator Warren, sits on the Banking Committee and is largely responsible for the current anti-innovation culture within our government.”

XRP Price Trends and SEC Appeal Plans

Price trends largely depend on whether the SEC decides to appeal the Ripple case rulings. XRP may drop below $0.40 if the SEC appeals. Conversely, if the SEC does not appeal, XRP could climb toward $1.00, mirroring the market’s response to the Programmatic Sales of XRP ruling.

A Deaton victory could tilt the scales in favor of XRP and the broader crypto market.

Investors should closely monitor appeal-related news, which could significantly impact 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 above the 50-day and 200-day EMAs, sending bullish price signals.

A break above the $0.5739 resistance level could support a move toward $0.60. Furthermore, a breakout from $0.60 could bring the $0.6609 resistance level into play.

SEC activity, SEC vs. crypto case-related updates, and the result of the Massachusetts primary require consideration.

Conversely, an XRP break below the 50-day and 200-day EMAs could signal a fall toward the $0.50 level. A fall through $0.50 may give the bears a run at the top trend line.

With a 14-day RSI reading of 47.66, XRP could fall to $0.50 before entering oversold territory.