XRP Tumbles in Crypto Market Sell-off

On Tuesday, August 27, XRP slid by 3.40%, following a 2.20% loss from the previous day, closing at $0.5674. XRP traced the broader crypto market downturn, which saw the total market cap tumble by 5.30% to $2.041 trillion.

Better-than-expected US economic indicators challenged investor bets on multiple 2024 Fed rate cuts, fueling a broad-based crypto sell-off. US consumer confidence influenced investor sentiment on Tuesday. An unexpected rise in confidence likely eased investor fears of a hard US landing and the need for aggressive Fed rate cuts to bolster the economy.

SEC vs. Ripple: Appeal Chatter Intensifies as SEC Closed Meeting Looms

Three weeks have passed since Judge Analisa Torres issued the final judgment in the SEC vs. Ripple case on August 7. The SEC has remained silent on whether it intends to appeal.

On Tuesday, pro-crypto lawyer Fred Rispoli reignited the appeal debate, asking,

“On the odds of an SEC vs. Ripple appeal, can any securities lawyers answer this question for me: If there is an appeal and if Ripple wins on every issue over the SEC, aside from returning the $125M penalty to Ripple, does the SEC have to pay statutory interest on that?”

Former SEC member and General Counsel at AscendEX James Farrell responded to the query, stating,

“Generally Ripple would stay payment of judgment pending appeal and might post a bond securing. If SEC loses, then the cost of the bond would typically be charged to it as part of the costs of appeal under FRAP 39 (at discretion of 2d Cir like any bill of costs).”

Farrell added,

“More complex if 2d Cir remands for a new trial (eg if 2d Cir thinks there are fact issues which should have precluded grant of summary judgment). This all assumes a cross appeal. Bc if Ripple does not cross appeal then it is conceding that it owes $125MM and there is nothing the appeals court can do for issues not before it.”

Farrell’s response highlighted the risk that the SEC faces if it appeals rulings from the Ripple case. A Ripple cross appeal could challenge the ruling that Ripple breached US securities laws for selling unregistered XRP. A cross-appeal could set a precedent for XRP sales, potentially undermining the SEC’s regulatory approach.

Is an SEC Appeal Imminent?

The Ripple case could be a talking point at an SEC closed meeting on Thursday, August 29. An appeal could force Ripple into a cross-appeal and extend the case into 2025.

The 60-day appeal window closes in early October, meaning the appeals process would continue beyond the US presidential election. The SEC may need to consider the possible implications of a change in administration.

XRP Price Outlook Hinges on SEC Activity

Price trends will depend on the SEC’s plans for an appeal. XRP could tumble below $0.40 if the SEC appeals. Conversely, XRP could target a return to $1.00 if the SEC does not challenge rulings from the case. XRP rallied from $0.4696 to a high of $0.9327 in response to the July 2023 Programmatic Sales of XRP ruling.

Investors should remain vigilant as appeal-related news will likely influence XRP price trends. Stay updated with our latest news and analysis to manage your exposure to XRP and the broader crypto market.

Source : FX Empire - Aug 28, 2024