XRP News Today: Will July Bring a Final SEC Ruling on Ripple’s Institutional Sales?

Is a verdict from the SEC vs. Ripple case coming in July? Investors should consider two parts of the court ruling, the penalty amount and an injunction. Prohibiting XRP sales to institutional investors would hurt Ripple’s US expansion plans.

XRP Joins Broader Market in Relief Rally

On Monday, July 8, XRP gained 2.76%. Partially reversing a 6.65% slide from Sunday, July 7, XRP closed the day at $0.4313.

XRP tracked the broader crypto market into positive territory. On Monday, the total crypto market cap increased by 2.13% to $2.043 trillion. Dip buyers returned after an extended market decline.

There were no SEC vs. Ripple updates to influence XRP price trends. However, investors awaited a court verdict from the Ripple case.

SEC vs. Ripple: Speculation Grows About a July Verdict

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. Additionally, Judge Torres ruled that Ripple violated US securities laws by selling unregistered XRP to institutional sales.

The pending court ruling is on the penalty Ripple must pay for breaching the US securities laws.

For context, the SEC argued for a $2 billion penalty and an injunction prohibiting XRP sales to institutional investors. Ripple countered with a $10 million penalty proposal.

Pro-crypto lawyer Fred Rispoli recently shared his predictions on the court verdict, saying,

“Less than $25M penalty; $0 disgorgement. Judge rules all sales she deemed illegal are permanently enjoined and rules all the “new” contracts referenced by Ripple are not properly before her so SEC will have to sue again if it believes these violate her ruling.”

Rispoli expected a court verdict by July 31 but possibly on July 13.

Will the SEC File Another Ripple Lawsuit?

SEC vs. Ripple 2: Post-Complaint Activity

Pro-crypto Lawyer Rispoli predicted that Judge Torres would not consider post-complaint contracts in her ruling. He also suggested that the SEC would have to sue again if it thinks Ripple continued to breach US securities laws.

In March 2024, the SEC filed its remedies-related opening brief. The SEC argued that Ripple continued to violate securities laws after the December 2020 court filing.

In April 2024, Ripple responded with its remedies-related opposition brief. Ripple defended its post-complaint activity, stating that it sold XRP to accredited investors, exempt under US securities laws.

Ripple also stated that it limited other XRP sales to ODL (On-Demand Liquidity) sales. ODL contracts protect buyers from losses and prevent buyers from making profits. Preventing profits and losses is crucial. XRP buyers cannot have ‘an expectation of profits’ if the ODL contract prevents it. Therefore, ODL sales would fail the Howey test, meaning they would not breach US securities laws.

The SEC may decide it has a compelling case to sue Ripple again. More legal action against Ripple could adversely affect buyer demand for XRP.

In summary, the SEC vs. Ripple case remains the focal point. However, there could be more court filings after the remedies-related court verdict. Future actions may depend on the size of the penalty and if Judge Torres prohibits XRP sales to institutional investors.

Investors should remain vigilant. A court verdict could come soon. 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.

XRP Price Action

Daily Chart

XRP remained well below the 50-day and 200-day EMAs, affirming the bearish price signals.

An XRP return to the $0.45 handle could signal a move to the trend lines and the 50-day EMA. A break above the 50-day EMA would support a climb to the 200-day EMA. However, selling pressure may intensify at the top trend line. The 50-day EMA is confluent with the top trend line.

SEC vs. Ripple case-related updates require investor attention on Tuesday.

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

With a 14-day RSI reading of 36.88, XRP may drop below the $0.40 handle before entering oversold territory.