XRP News Today: SEC vs. Binance Filing Fuels Ripple Settlement Hopes

XRP Sees Gains Amid Market Decline

On Tuesday, July 30, XRP rallied 4.27%. Reversing a 0.02% loss from Monday, July 29, XRP ended the session at $0.6277. XRP bucked the broader market trend, with the total crypto market cap falling 0.83% to $2.327 trillion.

SEC Withdraws Token Classification Request

The SEC submitted a proposal on Tuesday, July 30, informing the Defendants in the SEC vs. Binance case that,

“It intends to seek leave to amend its Complaint, including with respect to the “Third Party Crypto Asset Securities” as defined in the SEC’s Omnibus Opposition to Defendants’ Motion to Dismiss […], obviating the need for the Court to issue a ruling as to the sufficiency of the allegations as to those tokens at this time.”

The filing related to the classification of tokens, including cardano (ADA) and solana (SOL).

SEC vs. Binance Case Cements Programmatic Sales Ruling

In June 2024, Judge Amy Berman Jackson dismissed the SEC case against Binance, claiming that secondary sales of Binance Coin (BNB) qualify as securities under the Howey test. Judge Jackson cited the Programmatic Sales of XRP ruling, 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 […].”

Reactions from Ripple Executives

Ripple CEO Brad Garlinghouse criticized the SEC, stating,

“More evidence of SEC hypocrisy. Chair Gensler testifies the rules are clear, yet his SEC can’t figure them out and applies them haphazardly, festering more industry confusion. A political agenda and/or bad faith litigation tactics. Def not a “faithful allegiance to the law”.

Ripple Chief Legal Officer Stuart Alderoty referenced the SEC v Coinbase (COIN) case, where the SEC continues to contest their classification as securities.

Potential Impact on the Ripple Case

On Monday, July 29, 2024, the SEC issued a Sunshine Act Notice. According to the Sunshine Act Notice, the SEC will hold a Closed Meeting on August 1. The Sunshine Act Notice differs from the July 25 Notice, with institution and settlement of injunctive actions an additional agenda item.

The SEC’s filing in the Binance case suggests the SEC could end its plans to appeal the Programmatic Sales of XRP ruling. Significantly, the SEC could settle the SEC vs. Ripple case if it does not plan to file an appeal.

Pro-crypto lawyer Bill Morgan recently commented on the matter of settlements and appeals, stating,

“Settlements generally end matters in dispute, including appeal rights in the current proceedings.”

Settlements: XRP Price Impact

XRP surged from $0.4696 to a session high of $0.9327 in response to the July 13, 2023, Programmatic Sales ruling. However, XRP dropped below $0.45 by mid-August 2023 over fears of an SEC appeal.

Investors should remain alert amidst increasing speculation about a settlement. Stay updated with our latest news and analysis to manage exposures to XRP and the broader crypto market.

XRP Price Action

Daily Chart

XRP sat comfortably above the 50-day and 200-day EMAs, affirming the bullish price signals. Furthermore, a bullish cross of the 50-day EMA through the 200-day EMA was another bullish price signal.

A break above the July 17 high of $0.6378 could support a move toward the $0.6609 resistance level. An XRP break above the $0.6609 resistance level could give the bulls a run at the $0.70 handle.

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

Conversely, an XRP break below $0.60 could bring the $0.5739 support level into play.

With a 14-day RSI reading of 61.04, XRP could break above the $0.65 handle before entering overbought territory.