XRP News Today: SEC Appeal Talks Weigh on XRP Performance

XRP Trails the Broader Market on Appeal Speculation

On Thursday, September 26, XRP advanced by 1.22%, partially recovering a 1.24% loss from the previous session, closing at $0.5908. Nevertheless, XRP underperformed the broader market, which advanced by 2.94%, taking the total market cap to $2.232 trillion.

Speculation About an SEC Appeal Intensifies

On Thursday, speculation about the chances of the SEC appealing rulings from the SEC v Ripple case impacted XRP demand. Fox Business Journalist Eleanor Terrett reported a conversation with a former SEC lawyer, stating,

“A former SEC lawyer who recently left the agency tells me the SEC will ‘probably’ appeal Judge Torres’s July 2023 ruling concerning the XRP programmatic sales in the Ripple case partly because: ‘everyone over there [at the SEC] truly believes that the decision is wrong, that it’s not good law, and should be appealed.”

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

The SEC showed its hand in August 2023, filing a Motion for Interlocutory Appeal, asking the court’s permission to appeal the ruling. However, Judge Torres rejected the Motion in October 2023, meaning the SEC had to wait until the final judgment to appeal. Judge Torres issued the final Judgment on August 7, 2024.

Pro-Crypto Lawyer Views on the SEC’s Plans for an Appeal

Pro-crypto lawyer Jeremy Hogan reacted to the news, stating,

“Of COURSE they think the opinion is wrong – they were on the losing side. What the SEC SHOULD be thinking of right now is whether an appeal furthers its mandate of investor protection and capital formation. Why isn’t that top of mind?”

Hogan previously commented on the SEC’s uncertainty regarding the appeal process, saying,

“Most likely the SEC just hasn’t made a decision whether it will appeal yet. Why? Filing a Notice of Appeal – see sample below – takes only 15 minutes (you file the Notice and then have 70 days to file the actual brief). If the decision to appeal was already made, there’s no reason to delay filing the Notice – especially when you think it’s bad case authority out there.”

On September 4, 2024, Ripple filed for a stay on the $125 million court ruling, raising expectations of an SEC appeal. The filing requested a stay for up to 30 days beyond the 60-day appeal window. Pro-crypto lawyer Fred Rispoli reacted to the court filing, raising the odds of an SEC appeal to 60: 40 in favor of an appeal.

The appeal window closes on October 7, leaving the SEC seven business days to file an appeal.

Ripple Chief Legal Officer Dismisses Appeal on Secondary Sales

In August, Ripple Chief Legal Officer Stuart Alderoty stated in an interview with CryptoLaw that the secondary market trading of XRP as not a security transaction is the law of the land and does not change, even if the SEC appeals. On September 13, Alderoty also announced, “Ripple’s case is over,” referencing an SEC filing in the ongoing SEC vs. Binance case.

Alderoty’s views about the SEC being unable to appeal the Programmatic Sales ruling adds an additional layer of uncertainty.

How Can the SEC Impact XRP Demand?

Price trends depend on whether the SEC appeals rulings from the Ripple case. If the SEC appeals the Programmatic Sales of XRP ruling, XRP could drop toward $0.40. Conversely, if the SEC does not file an appeal, XRP could target $1.00, 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. Keep track of SEC actions, which could be pivotal in dictating XRP’s price movements.

XRP Price Action

Daily Chart

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

A return to $0.60 could give the bulls a run at the September 21 high of $0.6128. Furthermore, a break above $0.6128 could signal a move toward the post-final judgment high of $0.6434.

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

Conversely, a drop below the $0.5739 support level and the 50-day EMA may signal a fall toward the 200-day EMA. Buying pressure may intensify at the $0.5739 support level. The 50-day EMA is confluent with the support level.

With a 14-day RSI reading of 56.23, XRP could climb to the $0.65 level before entering overbought territory.