XRP News Today: SEC vs. Ripple Verdict Pending Amid Regulatory Cloud

Will the SEC vs. Binance ruling trigger an XRP rally, or could the SEC use the Terraform Labs ruling to appeal the Programmatic Sales of XRP ruling?

SEC vs. Ripple: Penalty for Violating US Securities Laws

On Friday, July 5, XRP declined by 1.69%. Following a 7.32% tumble on Thursday, July 4, XRP ended the session at $0.4256. Significantly, XRP dropped below $0.40 for the first time since March 2023.

There was no SEC v Ripple case-related news to influence buyer demand for XRP. Investors awaited the court ruling on the penalty Ripple must pay for breaching US securities laws.

For context, Judge Analisa Torres ruled Ripple violated US securities laws for unregistered XRP sales to institutional investors.

The penalty could range from $10 million to $2 billion, possibly including an injunction against XRP sales to US institutional investors.

The Penalty Range for Ripple Breaching US Securities Laws

In March, the SEC argued for nearly a $2 billion penalty and requested an injunction in its remedies-related opening brief. Ripple responded to the opening brief, presenting its case for a $10 million penalty in the remedies-related opposition brief.

The ruling could hinge on whether Judge Torres considers post-complaint XRP sales to institutional sales in violation of US securities laws.

While the crypto market holds its breath for the verdict, the 2023 the Programmatic Sales of XRP ruling remains another focal point.

SEC Plans to Appeal Against the Programmatic Sales of XRP Ruling Still On

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

For perspective, XRP surged to a high of $0.9327 on July 13, 2023, in response to the rulings on Programmatic Sales of XRP and the breach of US securities laws. However, XRP slid back below $0.50 on August 17 on fears of an SEC appeal.

Will the SEC appeal the Programmatic Sales of XRP ruling, or has the Binance ruling dashed SEC hopes of overturning it on appeal?

SEC vs. Terraform Labs and Binance Rulings Cloud the Regulatory Landscape

Two SEC vs. crypto court rulings have created uncertainty about the legal status of XRP as a commodity or security.

In December 2023, Judge Jed Rakoff ruled that Terraform Labs and its founder, Do Kwon, violated US securities laws by selling unregistered TerraUSD and Luna.

Judge Rakoff referenced the Programmatic Sales of XRP ruling, asserting that Judge Torres erred in her decision. The Terraform Labs ruling put the SEC in a stronger position to appeal against the Programmatic Sales ruling.

However, the June 2024 ruling in SEC vs. Binance could dampen SEC plans to appeal the Programmatic Sales of XRP ruling.

SEC vs. Binance Ruling Weakens SEC Case to Appeal

In June 2024, Judge Amy Berman Jackson dismissed the SEC charges against Binance, claiming that secondary sales of binance coin (BNB) qualify as securities under the Howey test.

In contrast to the views of Judge Rakoff on the Programmatic Sales ruling, Judge Jackson cited the 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 […].”

Ripple Chief Legal Officer Stuart Alderoty reacted to the Binance ruling, stating:

“For all the SEC has done to muddy the waters with its inconsistent legal theories, the Courts are seeing right through them.”

The muddying of the waters may continue to fuel investor uncertainty about SEC plans vis-à-vis an appeal and test buyer demand for XRP. Investors must wait until the final verdict from the Ripple case before learning whether the SEC will attempt to overturn the XRP ruling. The SEC may also appeal against the Binance ruling.

An end to SEC plans to appeal against the Programmatic Sales ruling could support an XRP return to $1.00. Conversely, an appeal could leave XRP at sub-$0.40.

Amid increasing activity in the US courts, monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay informed with our latest updates and insights to navigate the crypto market effectively.

XRP Price Action

Daily Chart

XRP sat well below the 50-day and 200-day EMAs, confirming the bearish price trends.

A break above the $0.45 handle could signal a move to the trend lines and the 50-day EMA. Breaking above the 50-day EMA could enable bullish movement towards the 200-day EMA. However, selling pressure may increase at the top trend line. The 50-day EMA is confluent with the top trend line.

SEC vs. crypto case-related chatter requires investor consideration.

Conversely, a fall through the $0.42 handle could signal a drop below $0.40.

With a 14-day RSI reading of 27.52, XRP remains in oversold territory. Buyer demand might intensify if XRP approaches the July 5 low of $0.3811.