XRP News: Ripple vs SEC – Lawsuit Update and Potential Ruling Implications

Key Insights:

  • XRP sees a slight decline, closing Friday at $0.5050, partially reversing Thursday’s modest gain.
  • An anticipated ruling in SEC v. Coinbase may bolster Ripple’s position against the commission.
  • SEC’s view on crypto exclusivity, except BTC, challenged.

Friday’s Overview of XRP

On Friday, XRP slipped by 0.04%. Partially reversing a 0.36% gain from Thursday, XRP ended the day at $0.5050.

SEC Responds to Ripple’s Opposition to Its Motion for Interlocutory Appeal

On Friday, the US Securities and Exchange Commission (SEC) responded to Ripple’s opposition to its motion for interlocutory appeal.

Defense attorney James Filan shared the filing, saying,

“The SEC has filed its Reply Memorandum in Further Support of its Motion to Certify Interlocutory Appeal.”

Filan had this to say about the Reply Memorandum,

“The SEC’s argument that Judge Torres should stay the proceedings because the SEC is all of a sudden concerned about conserving judicial resources is laughable.”

Within the filing, the SEC refers to the Programmatic Sales issue as a “knotty legal problem.”

Unsurprisingly, the SEC referenced the SEC v. Terraform Labs case. In this case, the presiding Judge Rakoff criticized Judge Torres’ ruling. The SEC also stated that the Defendants have no “institutional interest in the efficient resolution of this case.”

An additional argument for interlocutory appeal was the intentions of the Defendants to prolong the case “so that they may continue selling XRP into public markets.”

CryptoLaw founder and Amicus Curiae attorney John E. Deaton responded to the filing, saying,

“After a federal judge called them hypocrites and publicly stated that they lack a faithful allegiance to the law, you would think lawyers like Gurbir Grewal as SEC Enforcement Director, or senior SEC enforcement lawyer Jorge Tenreiro, would take pause, measure, and reevaluate, how they present the SEC’s legal positions.”

Deaton went on to say,

“Nope! The professional embarrassment continues. The SEC now claims, unlike Ripple, it is only interested in the efficient adjudication of this case and that it is Ripple who wishes to prolong the litigation thus wasting valuable judicial resources.”

Judge Torres will now consider the merits of the SEC motion for interlocutory appeal. It is unclear how long the process will take. Uncertainty toward the ruling would likely test buyer appetite.

We expect legal experts and the crypto community to analyse the SEC response. Views on the strength of the SEC argument for interlocutory appeal will influence investor sentiment.

The SEC references to the Terraform Labs case could give the SEC v Coinbase case more influence on the SEC v Ripple case. Judge Failla is the presiding Judge in the SEC v Coinbase case. A Judge Failla ruling for the Coinbase (COIN) motion to dismiss (MTD) would give the Ripple lawyers a better footing.

The SEC alleges that Coinbase operates as an unregistered securities exchange, broker, and clearing agent. A dismissal would be another ruling that denies the SEC position that all cryptos, except BTC, are securities.

XRP Price Action

XRPUSD 090923 Weekly Chart

Daily Chart

XRP moved sideways for the seventh consecutive session, leaving XRP at the $0.5042 support level. XRP could become the victim of uncertainty as investors await a Judge Torres ruling on the SEC motion for interlocutory appeal.

A pull back the $0.5042 support level would bring sub-$0.48 into view. However, XRP should steer clear of the 0.4322 support level. Favorable assessments of the Ripple and SEC filings would bring the trend line and 200-day EMA into play.

A break above the trend line and 200-day EMA would give the bulls a run at the $0.5470 resistance level. However, the 200-day EMA is confluent with the $0.5470 resistance level, signaling strong selling pressure at $0.5235.

Considering the 35.31 14-Daily RSI reading, XRP can fall to sub-$0.48 before hitting oversold territory.

XRPUSD 090923 Daily Chart

4-Hourly Chart

XRP sits below the 50-day and 200-day EMA, reaffirming the bearish price signals. However, a breakout from the 50-day EMA would give the bulls a run at $0.52 and the trend line. A break above the trend line would signal optimism toward Judge Torres denying the SEC motion.

However, apprehension would support a pullback from the $0.5042 support level to bring sub-$0.48 into view.

The 14-4H RSI 49.65 reading indicates XRP can return to $0.48 before entering oversold territory.

XRPUSD 090923 4-Hourly Chart

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