Ripple's Four-Day Rally Challenged by Lingering SEC Lawsuit

Simar Marwaha
Simar Marwaha Published on September 16, 2023 08:27 PM

Ripple's recent four-day surge in value is now encountering resistance, with the lingering SEC lawsuit posing a significant challenge to its momentum. The legal battle with the SEC continues to loom over Ripple's recent positive performance.

Ripple's Four-Day Rally Challenged by Lingering SEC Lawsuit
Source: Medium

The SEC, Ripple, and investors are anxiously awaiting a court decision regarding the SEC's motion for an interlocutory appeal. Although the SEC isn't disputing the court's ruling on XRP and Programmatic Sales, they aim to classify XRP as a security under specific conditions. While a ruling could come at any moment, XRP has seen a positive week, though there have been doubts about the credibility of some news reports. On Friday, unverified reports circulated about Blackrock (BLK) planning to introduce XRP investment products, but no official statements from Blackrock were available to confirm the story, and the news lacked a clear source.

Ripple's Recent Surge Clouded by Lingering SEC Lawsuit

On Friday, John E. Deaton, the founder of CryptoLaw and an attorney serving as Amicus Curiae, offered his thoughts on the recent developments regarding the anti-crypto bill introduced by Democratic Senator Elizabeth Warren.

“This administration, because of Elizabeth Warren and Gary Gensler, are NOT pivoting from their anti-crypto agenda. Judge Failla granting Coinbase’s MTD is the only thing I see causing a pivot, and not a pivot by choice but by circumstance.”

Deaton concluded,

“I do not believe one bit the Solicitor General will authorize an appeal that could reach the Supreme Court related to the Major Questions Doctrine. Such a ruling by the Supreme Court could severely limit all other federal agencies across the board.”

Investors are on the edge of their seats, awaiting the pivotal ruling by Judge Failla concerning Coinbase's motion to dismiss (MTD). To provide some context, the SEC has levelled allegations against Coinbase, claiming that the platform is operating without proper registration as a securities broker, clearing agent, and exchange.

This legal battle has far-reaching implications for both the cryptocurrency industry and traditional financial markets, as it tests the regulatory boundaries and oversight within the rapidly evolving crypto space.

The outcome of this case will likely set important precedents for how cryptocurrencies and related platforms are regulated and scrutinized by authorities, potentially shaping the future landscape of crypto trading and investments. As stakeholders await the judge's decision, the case remains a focal point in the ongoing dialogue about the intersection of crypto and securities regulation.


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