The United States Securities and Exchange Commission (SEC) has filed an appeal against a Manhattan court ruling from August 7. This ruling imposed a relatively minor penalty of $125 million on Ripple Labs, rejecting the SEC’s request for a much larger penalty of $2 billion for allegedly selling XRP as an unregistered security.
As Ripple gets ready to respond, here’s what you need to know about the next steps in this important case.
Yesterday, the SEC submitted a Form C to the US Court of Appeals for the Second Circuit. In this appeal, the SEC asks the court to reconsider the personal offers and sales of XRP made by Ripple’s CEO, Brad Garlinghouse, and co-founder Chris Larsen.
Back in 2020, the SEC charged Garlinghouse and Larsen, accusing them of raising $1.3 billion through illegal XRP sales. However, in October 2023, the SEC dropped these charges after Judge Analisa Torres ruled that Ripple’s sales of XRP on public exchanges were not considered securities transactions.
Reports suggest that Ripple plans to file its own Form C within seven days of the SEC’s submission. This indicates that Ripple might respond as early as this week to counter the SEC’s appeal.
Once Ripple files its Form C, both parties will discuss and agree on the briefing schedules. The SEC will likely have 90 days to present its arguments against Ripple, after which Ripple will get the chance to defend itself.
In a recent statement, Ripple CLO Stuart Alderoty opined that the legal battle between Ripple Labs and the US SEC could continue till 2026. If so, it would be one of the longest legal battles in the history of the crypto sector. Many believe that the outcome of this legal battle will not only influence the XRP market but also affect the broader cryptocurrency market.
In the past week, XRP has seen a modest increase of 1.6%. However, the SEC’s decision to file its Form C has slightly affected the market, leading to a 1.5% drop in the last 24 hours. At the beginning of October, XRP was priced at $0.59651 but fell to a low of $0.5217 on October 3. Since then, the market has moved sideways, ranging between $0.54844 and $0.52173.
Currently, the daily chart shows a bullish candlestick, with XRP priced at $0.54994. Over the past 30 days, the market has experienced a noticeable decline of 4.3%.
It’s essential to watch if XRP can recover from its earlier drop. To start a rebound, it needs to break through the key level of $0.61120.
With ongoing uncertainty surrounding the legal proceedings, stay informed about XRP price predictions and market trends. Keep an eye on Coinpedia for further updates on the XRP-SEC legal battle and its impact on the XRP market!
The XRP-SEC battle continues. How do you see this playing out? Will Ripple prevail? Share your predictions!
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