The outcome of the SEC vs Ripple case is anticipated by July 31 or possibly July 13, and a positive decision is predicted to trigger a bullish turnaround in XRP’s value.
As of the latest update, XRP has dropped 12% in the past 24 hours, trading at $0.400 at the time of reporting.
XRP plummeted to $0.400 after extending its downward trajectory by 12% over the last day. Notably, this bearish trend extended broadly across the market, with Bitcoin (BTC) falling by 7% to $54,000, while Ethereum (ETH) also experienced a 10% decline, trading at $2,859 currently.
According to available data, the significant decline in XRP’s price began on Wednesday, July 3, when it slipped by 3.7% to close at $0.4329 for the day. Remarkably, this marked the first instance since May that XRP concluded a day below the critical support level of $0.45.
During this time, the entire cryptocurrency market cap also saw a notable decrease of 5.84%, amounting to $2.043 trillion, marking the most significant single-day drop since April 13. On Thursday, June 4, XRP saw a further decline of 7.32%, followed by additional losses on Friday, contributing to the crypto market cap’s substantial 24% decrease to $1.98 trillion.
Amidst the ongoing market downturn, investors in XRP are pinning their hopes on a favorable outcome in the Ripple vs SEC case as a potential lifeline to revive bullish sentiment.
Update on SEC vs Ripple Case and Impact on XRP Price
James Filan, defense attorney, recently revealed that Ripple has submitted a Notice of Supplemental Authority concerning a recent ruling in the Binance case.
An excerpt from the filing reads:
“Intangible digital assets do not neatly fit into the framework outlined in the mere seven pages of the Howey opinion. Additionally, the SEC’s decision to regulate this billion-dollar industry through litigation, case by case, coin by coin, court after court, is likely not an efficient approach and risks inconsistent outcomes that could leave stakeholders and potential customers without clear guidance.”
For context, Judge Amy Berman Jackson recently dismissed allegations by the SEC that secondary market transactions of Binance’s BNB token meet securities requirements under the Howey Test. This decision was based on a July 2023 ruling by Judge Analisa Torres regarding XRP’s Programmatic Sales.
The court appears to favor the approach taken by Ripple Labs over the SEC’s “it-is-what-it-is” stance, which seems at odds with clear directives from the Supreme Court.
Legal experts suggest that the court’s ruling in this case might dissuade the SEC from appealing the Programmatic Sales of XRP ruling. Capitalizing on this, Ripple argued in its Notice of Supplemental Authority that the lack of clarity preceding that ruling supports its contention that “the Court’s finding of a strict liability violation on some of Ripple’s sales—though fewer than alleged by the SEC—does not demonstrate reckless disregard for the law or justify severe penalties.”
Presently, the SEC seeks $2 billion in disgorgement, whereas Ripple proposes only $10 million. The anticipated verdict dates are slated for either July 31 or potentially July 13, coinciding with the notable ruling date of Judge Analisa Torres. Analysts posit that a favorable resolution could propel XRP’s price as high as $1.