Ripple VS SEC Lawsuit: SEC Files Appeal, XRP Price on Edge

The U.S. Securities and Exchange Commission (SEC) has filed an appeal against Judge Analisa Torres’ August 7, 2024, decision in the Ripple case. The appeal, sent to the Court of Appeals for the Second Circuit, targets Ripple, CEO Brad Garlinghouse, and Executive Chairman Chris Larsen.

What does this mean for XRP and the broader crypto market? Will Ripple’s victory be overturned? And how will this impact the future of crypto regulation?

XRP’s Future at Risk?

This appeal could have a major impact on XRP, especially as it lines up with a possible “altseason.” XRP had underperformed during the 2021 crypto bull run, largely due to the Ripple vs. SEC lawsuit, which dragged on for over three years.

Technically, XRP’s price is showing signs of weakness. Some analysts are comparing it to “zombie coins” like Litecoin (LTC) and Monero (XMR). Despite its large market cap of $53 billion and a daily trading volume of $3.3 billion, XRP has slipped back into macro consolidation after showing potential for a breakout earlier this week.

XRP has also fallen below key moving averages (50-day and 200-day), indicating that bearish trends may be taking hold.

XRP Community Criticizes SEC’s Move

The SEC’s decision to appeal has sparked criticism from the XRP community. CEO Brad Garlinghouse accused the agency of wasting taxpayer money on a case with no clear outcome.

“When the SEC tried unsuccessfully to file an “interlocutory appeal” they made clear they had no intention of challenging XRP’s status as a non-security,”

Ripple’s Chief Legal Officer, Stuart Alderoty, agreed, adding that the appeal would only prolong the SEC’s embarrassment after the court rejected claims that Ripple acted recklessly.

What’s Ripple’s Next Move?

Ripple is now considering whether to file its own cross-appeal. Interestingly, just an hour before the SEC’s appeal announcement, its long-standing Director of Enforcement, Gurbir Grewal, submitted his resignation—possibly signaling internal turmoil at the agency.

Despite the legal challenges, Ripple continues to grow its cross-border operations. The company is preparing to launch fiat-backed stablecoins called RLUSD. These stablecoins are expected to enhance XRP’s role in cross-border payments, helping Ripple compete with other blockchain firms offering similar services.

Despite the challenges, Ripple remains a major player in the crypto space. With its focus on cross-border payments and innovative solutions, the future may still be bright for XRP.