Analysts believe that the outcome of Coinbase’s legal proceedings could have an impact on the future price movement of XRP. Ripple’s Chief Legal Officer, Stuart Alderoty, recently criticized the SEC and Chair Gary Gensler for their regulatory approach, expressing concerns about excessive regulations stifling the digital asset sector.
While the crypto community has been eagerly awaiting the resolution of the SEC vs. Ripple case, attention has now turned to the SEC vs. Coinbase battle. Market analysts suggest that the price of XRP could be influenced by the developments in the legal battle between the SEC and Coinbase.
Currently, the SEC and Coinbase are awaiting a court ruling on the Coinbase Motion for the Interlocutory Appeal, which was filed in April 2024. This motion seeks permission to appeal against the ruling on Coinbase’s Motion to Dismiss (MTD).
In August 2023, crypto exchange Coinbase submitted the MTD, arguing that the SEC does not have the authority to regulate crypto exchanges. However, Judge Katherine Failla denied the MTD, stating that the SEC’s claim that Coinbase operated as an unregistered intermediary of securities was supported by the allegations in the complaint.
If Judge Failla grants Coinbase’s Motion for Interlocutory Appeal, the SEC vs. Coinbase case will be put on hold until the appeal process is completed. Successfully overturning the Motion to Dismiss could have positive implications for XRP and the broader cryptocurrency market.
Ripple and Coinbase have both referred to a recent ruling in favor of Binance by Judge Amy Berman Jackson. The judge ruled that the secondary market sales of BNB coin and the BUSD stablecoin do not constitute securities. Ripple and Coinbase argue that the lack of consistency in applying crypto regulations highlights the dependence on individual judges and courts.
Stuart Alderoty, Ripple’s Chief Legal Officer, voiced his concerns about the U.S. approach to crypto regulation during a panel discussion at Zurich’s Point Zero Forum. He criticized the SEC and Chair Gary Gensler for imposing overly strict regulations, which he believes hinder the growth and mainstream acceptance of digital assets.
The current price action of XRP is aligned with the overall market trends, including the Mt. Gox creditor repayment and the sell-off by the German government. At the time of writing, XRP is trading at $0.4343 with a market cap of $24.3 billion. If the price of XRP breaks above $0.50, it could pave the way for a further rally to $0.95.