XRP News Today: Ripple Legal Tensions Grow as SEC Appeal Deadline Approaches

XRP Sees Red as Appeal Threat Lingers

On Friday, September 20, XRP declined by 0.19%, partially reversing a 0.29% from the previous session to close at $0.5857. Significantly, XRP underperformed the broader market, which gained 1.08%, taking the total market cap to $2.152 trillion.

SEC vs. Ripple and Testimony on Capitol Hill

On Friday, Ripple Chief Legal Officer Stuart Alderoty commented on Professor Lee Reiners’s recent testimony on Capitol Hill, which focused on the US digital asset space, stating,

“Professor Lee Reiners testified before Congress recently, and while there’s much critique, even this pro-SEC/anti-crypto witness acknowledged the SEC’s loss in the Ripple case.”

Prof. Reiners discussed the SEC vs. Ripple case and cited a footnote from the Programmatic Sales of XRP ruling. The ruling stated,

“The Court does not address whether secondary market sales of XRP constitute offers and sales of investment contracts because that question is not properly before the Court. Whether a secondary market sale constitutes an offer or sale of an investment contract would depend on the totality of circumstances and the economic reality of that specific contract, transaction, or scheme.”

Prof. Reiners highlighted that the Programmatic Sales of XRP ruling gives accredited and institutional investors the protections of US securities laws, while retail investors remain without those safeguards. The Lecturing Fellow at Duke University elaborated,

“Thankfully, Judge Torres’ emphasis that a cryptocurrency buyer in the secondary market must know the identity of the seller in order for there to be an expectation of profit has since been ignored and rejected by multiple federal judges, including two of her fellow judges in the Southern District of New York.”

Prof. Reiners referred to rulings in the SEC v Coinbase and SEC vs. Terraform Labs cases. While the Coinbase (COIN) case may grab more headlines, Judge Rakoff, the presiding Judge in the Terraform Labs case, openly rejected the Programmatic Sales of XRP ruling, surmising,

“It may also be mentioned that the Court declines to draw a distinction between these coins based on their manner of sale, such that coins sold directly to institutional investors are considered securities and those sold through secondary market transactions to retail investors are not. In doing so, the Court rejects the approach recently adopted by another judge of this District in a similar case, SEC v. Ripple Labs.”

Does Prof. Reiners’s Testimony Encourage the SEC to Appeal?

Uncertainty about SEC plans to appeal against rulings in the Ripple case remained an XRP headwind. Professor Reiners’s testimony highlights the inconsistency in rulings in the Southern District of New York alone.

Does a Lack of Crypto Regulation Leave the SEC in the Driving Seat?

The lack of a crypto regulatory framework forces the US courts to interpret individual cases within the constraints of US securities laws. The inconsistency may incentivize the SEC to further pursue crypto firms, including possibly appealing rulings in the Ripple case. The SEC’s appeal window in the Ripple case closes on October 7.

XRP Price Trends and SEC Appeal Plans

Price trends depend heavily on whether the SEC appeals rulings from the Ripple case. If the SEC appeals, XRP may drop below $0.40. Conversely, XRP could target $1.00 if the SEC does not file an appeal notice, mirroring the market’s response to the Programmatic Sales of XRP ruling.

Investors should closely monitor appeal-related news, which could significantly impact XRP price trends. Stay informed on the latest legal developments to capitalize on XRP’s potential price movements.

XRP Price Action

Daily Chart

XRP remains above the 50-day and 200-day EMAs, affirming bullish price signals.

A return to the $0.60 level could support a move toward the $0.6527 resistance level. Furthermore, a break above the $0.6609 resistance level may give the bulls a run at the $0.70 level.

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

Conversely, a fall through the $0.5739 support level could signal a drop to the 50-day and 200-day EMAs. A break below the EMAs would signal a bullish trend reversal and a possible fall toward the $0.50 level.

With a 14-day RSI reading of 55.55, XRP could climb to the $0.65 level before entering overbought territory.