XRP News Today: SEC vs. Ripple Ruling Looms, Price Stagnates Below $0.50

Despite a recent court ruling in the SEC vs. Binance (BNB) case, XRP continues to struggle below the $0.50 mark. With investors anxiously awaiting the verdict in the ongoing SEC v Ripple case, is the uncertainty sidelining investment in XRP?

SEC vs. Ripple: Pending Court Ruling on Breaching US Securities Laws

On Monday, July 1, XRP advanced by 0.23%. Following a 0.70% gain on Sunday, June 30, XRP closed the session at $0.4766. Significantly, XRP last revisited the $0.50 handle on June 20.

Investors awaited the pending court verdict from the ongoing SEC vs. Ripple case. In July 2023, Judge Torres ruled that XRP sales to institutional investors violated US securities laws.

In March 2024, the SEC filed its remedies-related opening brief with the court, pursuing an almost $2 billion penalty. Additionally, the SEC argued in favor of an injunction prohibiting XRP sales to institutional investors.

The SEC argued that post-complaint Ripple activity looked very similar to the activity that led to the 2020 lawsuit.

However, Ripple rebutted the SEC argument by highlighting that post-complaint sales of XRP were to accredited investors or through ODL contracts. Ripple detailed that ODL contracts prevent profits or losses.

Sales to accredited investors are exempt from US securities laws. Furthermore, institutional investors acquiring XRP through ODL contracts cannot expect a profit, which fails the Howey test of expectations of profit.

However, XRP price trends suggest that investors remain cautious. While Ripple continues expanding globally, the prohibition of XRP to US institutional investors could dent its US expansion plans.

One other curveball could be an SEC appeal against the Programmatic Sales of XRP ruling.

Will the SEC appeal against the Programmatic Sales ruling after Judge Amy German Jackman dismissed the SEC vs. Binance case?

Judge Jackman referenced the Programmatic Sales of XRP ruling, stating,

“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 […].”

One issue for investors to consider is that Judge Rakoff, presiding over the SEC vs. Terraform Labs case, held a different opinion. Judge Rakoff ruled that Terraform Labs and Do Kwon failed to register TerraUSD and Luna as securities.

Before the ruling in the SEC vs. Terraform labs, Judge Rakoff openly criticized the Programmatic Sales of XRP ruling, saying that Judge Torres made an error.

Investors must decide whether the SEC will risk losing on appeal or allow the case to go to the US Supreme Court.

In January 2024, Ripple CEO Brad Garlinghouse commented during an interview about the case possibly reaching the US Supreme Court, stating,

“The current Supreme Court, we’d love to see the Vegas odds on how that would go. They have not been friendly to regulators.”

In conclusion, the threat of an SEC appeal will likely linger and influence near-term XRP price trends.

XRP Price Action

Daily Chart

XRP hovered below the 50-day and 200-day EMAs, sending bearish price signals.

An XRP break above the trend lines would support a move to the 50-day EMA. A move through the 50-day EMA could give the bears a run at the 200-day EMA and the $0.55 handle.

SEC vs. crypto case-related updates require investor attention.

Conversely, an XRP break below the $0.4650 handle could signal a fall to the $0.45 handle.

With a 14-day RSI reading of 42.80, XRP may decline to the $0.45 level before entering oversold territory.