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Debashree Patra
Debashree Patra
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- Oct 21, 2024 05:33 UTC
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Ripple vs SEC Lawsuit Update: XRP Is Officially Not a Security – Here’s Why
The SEC's decision not to appeal XRP's non-security status is a significant win for Ripple.
Despite the victory, Ripple continues to face legal challenges from the SEC regarding the actions of its executives.
The uncertainty surrounding the ongoing lawsuit has affected XRP's price and trading volume, but there are signs of growing optimism.
Ripple’s Chief Legal Officer, Stuart Alderoty, has once again ignited the XRP debate by reaffirming that the digital asset is not a security. Even after a landmark court ruling in July 2023, where Judge Analisa Torres declared XRP as a non-security when traded on secondary markets, the controversy surrounding its classification persists.
While the U.S. Securities and Exchange Commission (SEC) is appealing certain elements of the decision, it is not challenging the core ruling regarding XRP’s classification.
What next for XRP?
Alderoty’s Quirky Comparison
To clear up the confusion, Alderoty took to X (formerly Twitter) and shared a humorous analogy. He posted an image of a Taylor Swift concert ticket, likening it to XRP. Just as reselling a concert ticket does not transform it into a security, trading XRP does not automatically subject it to securities law. The comparison aims to illustrate that not all traded assets fall under the securities category.
Ripple is currently gearing up to submit its response by filing Form C, as required. The SEC’s appeal centers on allegations against Ripple executives Brad Garlinghouse and Chris Larsen, accusing them of involvement in XRP sales and seeking a ‘de novo’ trial. The case, which could drag on until 2025, follows Ripple’s partial victory in 2020 when XRP was declared not a security when sold on exchanges.
And It May Go On….
As the legal fight between Ripple and the SEC drags on, Ripple plans to submit its response to the SEC’s latest appeal. Although the SEC isn’t disputing XRP’s non-security status, the ongoing lawsuit keeps XRP’s price growth in question.
Currently, XRP trades at $0.5469, reflecting a slight drop of 0.6% as the case developments add more uncertainty to its future trajectory.
XRP Price Analysis
The SEC’s decision not to challenge XRP’s non-security classification has sparked cautious optimism in the market.
Crypto analyst Egrag Crypto predicts that XRP could climb to $1.50 in the near term, even though it currently stands at $0.55. Despite an 11% drop in trading volume over the past 24 hours, XRP purchases in the futures market are on the rise, with open positions increasing by over 2% to reach $770 million.
With the SEC’s appeal still looming, what’s your outlook on XRP’s future?
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