XRP News Today: Ripple CEO Criticizes SEC Strategy as XRP Trails Market

XRP Trails the Crypto Market Amid Appeal Speculation

On Friday, October 11, XRP gained 1.55%, following a rise of 1.22% from the previous session, closing at $0.5382. Despite the gains, XRP underperformed the broader crypto market, which rallied 3.11% to a total market cap of $2.130 trillion.

Uncertainty about the outcome of the SEC and Ripple appeals left XRP trailing the broader market.

SEC Appeal Strategy Under Scrutiny

Discussions surrounding the SEC’s Notice of Appeal continued on Friday. The SEC filed a Notice of Appeal, challenging the Summary Judgment and the final judgment in the SEC vs. Ripple case. In the July 2023 Summary Judgment, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

On Friday, Ripple CEO Brad Garlinghouse criticized the SEC’s appeal strategy, stating,

“A new low for a renegade agency many thought couldn’t sink further. The SEC now believes it can operate above the law, ignoring a Court’s ruling that XRP isn’t a security. Team Ripple will be watching closely and weighing our own options to hold the SEC accountable.”

Bitnomial Files Suit Against the SEC to Prevent Overreach

Garlinghouse posted his views on X (formerly Twitter) in response to news of Bitnomial suing the SEC.

In response to the SEC’s legal challenges, Bitnomial, a crypto derivatives exchange, announced its suit against the SEC, saying,

“Bitnomial Exchange, LLC has filed suit against SEC to prevent them overreaching their statutory authority and asserting joint jurisdiction over Bitnomial’s XRP futures contracts, which are under the sole jurisdiction of the Commodity Futures Trading Commission (CFTC).”

Bitnomial issued a press release regarding the suit, stating,

“Given the recent landmark determination by the Southern District of New York that XRP is not inherently a security and was not a security when it was traded on the secondary market, Bitnomial Exchange is well situated to request a court determination that XRP Futures are not security futures. Despite their recent loss in court, the SEC still contends that XRP is a security.”

Ripple Chief Legal Officer Stuart Alderoty remarked on the latest filing against the SEC, stating,

“ If this were a law school blue book exam, the hypothetical scenario would be: A regulatory agency loses in court but still threatens enforcement to pressure compliance, raising major constitutional concerns and further compromising the legitimacy of the agency.”

Bitnomial’s legal maneuver came after Ripple cross-appealed the Final Judgment in the SEC vs. Ripple case on October 10.

XRP Price Outlook: Appeal Strategies Pivotal

XRP may continue to hover below $0.55 as investors await the next steps in the SEC’s appeal. Speculation about the SEC’s challenge to the Programmatic Sale ruling may impact XRP demand.

Price trends may hinge on whether the SEC presents a strong case to challenge the Programmatic Sales. If the SEC files convincing arguments to appeal the ruling, XRP may break below $0.50. Conversely, XRP could rally toward $1.00 if the SEC withdraws its appeal, mirroring price action following the Programmatic Sales ruling.

Outlook

Investors should closely monitor appeal-related news, which may affect XRP price trends. Keep track of SEC actions, which could be pivotal in dictating XRP’s price movements.

XRP Price Action

Daily Chart

XRP remains below the 50-day and 200-day EMAs, sending bearish price signals.

A break above Thursday’s high of $0.5446 could signal a move toward the 200-day and 50-day EMAs. Furthermore, a breakout from the EMAs could give the bulls a run at the $0.5739 resistance level.

Ripple case-related news, SEC activity, and SEC vs. crypto case-related updates require consideration.

Conversely, a drop below the $0.50 level may signal a fall toward the trend lines.

With a 14-day RSI reading of 43.22, XRP may break below $0.50 before entering oversold territory.