With what comes as a surprise to the market, the US SEC appeal against Ripple has sent the price of its native token XRP into deep red territory. Earlier on Wednesday, the Securities and Exchange Commission of the United States said that it is going to appeal a court decision that limited its authority to oversee cryptocurrency markets.
According to Reuters, the SEC is planning to request a review of a July 2023 ruling by the 2nd US Circuit Court of Appeals in Manhattan, which determined that the XRP cryptocurrency offered by Ripple Labs on open exchanges did not fit the legal definition of a security.
The news has kept crypto participants on their toes with dampened sentiments resulting in XRP falling over 10% and being one of the worst-performing currencies on October 3rd.
The move also got a wide level of hate from market participants, with Ripple head Brad Garlinghouse openly expressing his disappointment.
Ripple VS SEC: What Happened in The Previous Trial?
During the previous trial, a US judge had decided that Ripple Labs Inc. did not break federal securities law by offering its XRP coin for sale on open exchanges. This decision was a significant legal win for the cryptocurrency sector and caused XRP’s value to skyrocket during that time.
By selling XRP, which Ripple’s creators founded in 2012, the company and its current and past chief executives were charged by the SEC with executing an unregistered securities sale for $1.3 billion.
Although the court also granted the SEC a partial victory, US District Judge Analisa Torres’ decision was the first victory for a cryptocurrency corporation in a case brought by the SEC. The decision essentially stated that XRP could not be considered a security, and therefore it limited the SEC’s control over cryptocurrencies.
Will XRP Keep Falling in the future?
XRP’s price fall comes as investors now wonder if the legal battle between Ripple and Wall Street’s official watchdog will continue for longer than expected.
At the press time, the coin is trading at $0.5148, down 12.32% as compared to the same time last day. Given this falling scenario, technical indicators for XRP indicate that the current mood is bearish, and the Fear & Greed Index is currently reading 37 (Fear).
XRP experienced 15/30 (50%) green days with 4.92% price volatility during the previous 30 days. However, if the macro market conditions do gain momentum and XRP investors can look beyond the current development in the SEC appeal, the price of XRP is expected to have increased by 19.32% to $0.616179 in the forthcoming month.