In an attempt to overturn the earlier ruling that favored Ripple, the US SEC has submitted an appeal at the last minute. According to a recent filing, the SEC is contesting the July 2023 finding that found Ripple’s XRP sales on digital asset platforms, executives’ sales, and other distributions of XRP did not qualify as investment contracts.
Since the news has lowered mood and kept cryptocurrency participants on edge, XRP has dropped by more than 3% in the aftermath of the filing. At the press time, it is trading at $0.5507, down 0.44% as compared to the same time last day.
What is The SEC Appealing Against?
The SEC filed a late-night filing in the U.S. Court of Appeals for the Second Circuit, stating that it does not disagree with the ruling that sales of XRP to individual investors via exchanges are not considered securities. Rather, the agency is concentrating its objection on other significant facets of the decision.
The court’s ruling that Ripple’s personal sales by Ripple executives Bradley Garlinghouse and Christian Larsen, as well as the company’s offers and sales of XRP on digital asset trading platforms, did not amount to a breach of securities laws is the subject of the appeal.
The agency is also challenging the decision that found no violation of securities laws occurred when Ripple distributed XRP in exchange for non-cash consideration.
Previously, a US judge had ruled in the prior trial that Ripple Labs Inc. had not violated federal securities law by allowing its token, XRP, to be sold on open exchanges.
The SEC had accused the company and its former and present chief executives of carrying out an unregistered securities sale for $1.3 billion by selling XRP, which Ripple’s founders established in 2012.
US District Judge Analisa Torres’ ruling was the first win for a cryptocurrency firm in an SEC action, even if the court also awarded the SEC a partial victory. The ruling fundamentally restricted the SEC’s authority over cryptocurrencies by saying that XRP could not be regarded as a security.
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Will XRP Keep Falling In The Future?
XRP is having a tough time in finding positive cues for trading at the moment. However, as these legal matters disappear, it is likely that the coin might find better trading days in the future.
In that scenario, the coming month can see XRP increase in price by 17.93%. Most parameters for the coin indicate that the current mood is bearish, and the Fear & Greed Index is currently reading 73 (Greed). Over the previous 30 days, XRP had 15/30 (or 50%) green days and 5.83% price volatility.
XRP’s technical indicators also suggest that by mid-November, XRP’s 200-day SMA will reach $ 0.570329. The RSI value for XRP is 47.82 at the moment, meaning that the market for XRP is neutral.