XRP News Today: Ripple’s 60-Day Limbo – What’s Next for XRP Amid SEC Headwinds?

XRP Eyes a Return to $0.60

On Tuesday, August 13, XRP gained 1.55%, closing at $0.5777 after a 2.91% rally on Monday. The broader crypto market rose by 1.28% on Tuesday, climbing to a total market cap of $2.088 trillion.

XRP in 60-Day Limbo

Uncertainty about a possible SEC appeal against the Programmatic Sales of XRP ruling remained an XRP headwind.

In July 2023, Judge Analisa Torres ruled that Programmatic Sales of XRP do not satisfy the third prong of the Howey Test.

The SEC attempted to appeal against the ruling in August 2023 by filing a Motion for Interlocutory Appeal. However, Judge Torres rejected the Motion in October 2023, forcing the SEC to wait until the final judgment in the SEC vs. Ripple case before filing an appeal.

Ripple and the SEC have 60 days to appeal against rulings from the case, leaving XRP in limbo.

Political and Regulatory Dynamics

The SEC has had since October 2023 to prepare for an appeal against the Programmatic Sales ruling.

However, the US political landscape has changed significantly since President Joe Biden withdrew from the US Presidential Election race.

Republican Party front-runner Donald Trump is now up against US Vice President Kamala Harris. Biden’s withdrawal allowed her to distance herself from the Democratic Party’s anti-crypto stance. Trump had possibly cornered the crypto vote before Biden’s exit.

An SEC appeal against the Programmatic Sales ruling could affect Harris’s chances of wooing the crypto vote. Unlike FTX and others, the SEC never accused Ripple of fraud or recklessness.

Giving Ripple and XRP a pass and going after another player in the crypto space could be more palatable for crypto voters.

SEC vs. Binance: A New Target?

The SEC could shift its focus to the secondary sales ruling in the SEC vs. Binance case.

In June, Judge Amy Berman Jackson dismissed the SEC case against Binance, claiming that secondary Binance Coin (BNB) sales qualify as securities under the Howey test.

Judge Jackson cited the Programmatic Sales of XRP ruling in her decision, surmising,

“The court is inclined to agree with the approach of the court in Ripple Labs, since the ‘it-is-what-it-is’ approach of the SEC appears to be inconsistent with the clear Supreme Court directives […].”

Successfully appealing against the Binance ruling could water down the precedent set by the Programmatic Sales ruling.

US voters may also have less interest in the Binance case. In November 2023, the US Department of Justice announced former Binance CEO CZ and Binance pled guilty to US Federal charges, including allowing money to flow to terrorists, and agreed to pay $4 billion. The courts also sent former Binance CEO CZ to jail.

Successfully overturning the secondary sales ruling could empower the SEC to pursue other cryptos through enforcement.

Expert Views on the SEC’s Legal Options

Pro-crypto lawyer Fred Rispoli commented on the chances of an SEC appeal against the Programmatic Sales of XRP, stating,

“It is as close to a 50-50 as you can get. […]. The SEC would want to appeal the secondary market issue, […] That’s the one thing that is driving whether they should appeal or not, is, we got to get that off the books for the secondary market because that’s critical to how we do this, how we run our enforcement actions.”

Rispoli also suggested appealing the Binance ruling, saying,

“You could get a situation where they decide, well, let’s appeal the Binance one, where they said no secondary markets with this exchange and let the XRP one stand, and then XRP and Ripple would be in a unique one-off where those facts have been decided and not appealed. And you could conceivably three, four years get a ruling that secondary sales are securities generally, and only XRP is now completely protected from that.”

XRP Price Trends

Uncertainty about the SEC’s plans to appeal could leave XRP at current levels. However, XRP could drop to its July 5, 2024, low of $0.3814 in case of an appeal. Conversely, if the SEC decides against an appeal, XRP could jump to its July 13, 2023, high of $0.9327.

Investors should remain alert, as appeals could adversely 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, confirming the bullish price trends.

A return to $0.60 could support a move toward the August 7 high of $0.6437. A return to $0.6437 may give the bulls a run at the $0.6609 resistance level.

SEC activity, SEC vs. crypto case-related news, and Ripple stablecoin (RLUSD) updates require consideration.

Conversely, a break below the $0.5739 support level could give the bears a run at the 50-day and 200-day EMAs.

With a 14-day RSI reading of 52.15, XRP could rise to the $0.6609 resistance level before entering overbought territory.