XRP News Today: SEC vs. Ripple Appeal Window Tightens, XRP Faces Volatility

XRP Falls Short of $0.60

On Thursday, September 19, XRP gained 0.29%, following a rise of 0.17% from the previous day to close at $0.5874. However, despite the upswing, XRP underperformed the broader crypto market, which advanced by 2.24%, taking the total market cap to $2.129 trillion.

Hopes of a US soft economic landing drove buyer demand for riskier assets as investors reacted to US economic data.

SEC vs. Ripple: Appeal Uncertainty Lingers

Uncertainty surrounding the finality of the SEC vs. Ripple case remained an XRP headwind on Thursday, capping gains relative to the broader market.

On August 7, 2023, Judge Torres delivered the final judgment, ordering Ripple to pay a $125 million fine for breaching US securities laws and to comply with US securities laws going forward. The SEC had asked for a whopping $2 billion penalty and an injunction prohibiting XRP sales to institutional investors.

Speculation about the agency possibly appealing rulings from the Ripple case continued to impact XRP demand. This month, Ripple filed for a stay (suspension) on the $125 million final judgment, fueling market speculation about a possible SEC appeal.

In 2023, well before the final judgment, the SEC attempted to appeal the Programmatic Sales of XRP ruling by filing a motion for interlocutory appeal. However, the court rejected the motion in October 2023. The court ruling meant that the SEC had to wait until the final judgment before filing an appeal.

SEC Intensifies Crypto Scrutiny

On Wednesday, SEC Chair Gary Gensler reiterated the agency’s stance on cryptos, warning that the field is rife with fraudsters, scammers, and grifters. Chair Gensler also dismissed claims about a lack of regulatory clarity, stating that US securities laws have given clarity for 90 years.

Gensler’s comments suggested the agency intends to continue pursuing players within the digital asset space despite a lack of a crypto regulatory framework.

While the SEC keeps the heat on crypto firms, Congress is turning up the heat on the SEC’s approach to regulating cryptos.

Digital Asset Security Debate

On Thursday, Republican Congressman Ritchie Torres shared coverage from a session in Congress, stating,

“The term ‘digital asset security’ does not appear anywhere in any law enacted by Congress or in any rule promulgated by the SEC or in any decision rendered by the Supreme Court. It appears nowhere in the 2 million pages of the Federal Register. If it comes from neither statute nor rule, then where does it come from? The SEC invented the term out of thin air.”

Ripple Chief Legal Officer Stuart Alderoty remarked on Torres’s comments, saying,

“The SEC has a pattern of using the made-up term ‘crypto asset security’ to mislead judges—and it’s catching up with them. Thank you, Congressman Ritchie Torres.”

On September 13, 2024, the SEC sought permission from the court to amend the Binance complaint. Significantly, the SEC wanted to clarify its position on crypto asset securities, stating the agency did not refer to the crypto asset itself as a security and would cease to use the term to avoid confusion. The SEC has faced intense scrutiny since the filing, leading to Congressman Torres’s comments.

Next week, all five SEC Commissioners will give testimony on regulatory practices at a US House Committee on Financial Services committee hearing. The matter of cryptos as securities and the SEC’s ongoing assault on the US digital asset space will likely be talking points.

XRP Price Trends and SEC Appeal Plans

Price trends remain heavily dependent 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 hovers above the 50-day and 200-day EMAs, sending bullish price signals.

A break above the $0.60 level could give the bulls a run at the $0.6527 resistance level. Furthermore, a breakout from the $0.6527 resistance level may signal a move toward the $0.70 level.

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

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

With a 14-day RSI reading of 56.78, XRP may return to the $0.65 level before entering overbought territory.