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Ripple v. SEC update as of September 8, 2023

Ripple v. SEC update as of September 8, 2023

The ongoing legal battle between the United States Securities and Exchange Commission (SEC) and Ripple continues to generate various opinions from the parties involved as the case gears up for the second court battle.

In this line, Chris Larsen, co-founder of Ripple, emphasized that the regulator failed to achieve their key objectives in the legal proceedings during a recent Bloomberg interview on September 6. Notably, Ripple secured a partial victory as the court ruled that XRP should not be classified as a security.

At the same time, Larsen acknowledged that amidst the ongoing appeals process, he deemed the case’s outcome momentous for Ripple and the broader cryptocurrency sector, signifying a pivotal juncture in the industry.

“I think the bottom line is the SEC lost on everything that was important to them and important in regulation of the industry. The case still continues, or there are appeal processes that everybody has the right to do. But we think that this is really groundbreaking,” he said. 

The executive’s sentiments come after Ripple opposed the SEC’s plans to appeal the verdict. Ripple contends that the regulator has not fulfilled all the necessary prerequisites to justify an appeal in this case.

SEC case hurting XRP 

Meanwhile, pro-XRP lawyer John Deaton, in an X (formerly Twitter) post on September 7, stated that the SEC’s case had harmed XRP despite the initial court ruling favoring the cryptocurrency.

“The damage to XRP’s adoption in the United States is very significant. <…> Because the SEC was claiming XRP was a security, including secondary market sales, independent of Ripple, and Coinbase needed the SEC’s approval to go public and issue an IPO, Coinbase felt compelled to suspend/delist XRP from its platform,” he said

With the case also set to trial in 2024, Deaton has previously suggested that the involved parties might opt for a settlement. He clarified that if the judge overseeing the Coinbase case approves the exchange’s request for dismissal, it would indicate that token sales conducted on the platform are not under the jurisdiction of U.S. securities laws. 

In such an event, if the dismissal is granted, it would greatly reduce the SEC’s ability to pursue an appeal, making a settlement a viable option.

Notably, Ripple’s CEO, Brad Garlinghouse, had previously emphasized that the sole condition for resolving the matter before the summary judgment decision was contingent on the SEC’s determination that XRP did not fall under the security category.

XRP price analysis

In the meantime, XRP continues to trade in a consolidation phase, aligning with the broader cryptocurrency market. At the time of this report, XRP was trading at $0.50, showing daily losses of approximately 0.20%.

XRP seven-day price chart. Source: Finbold

Lastly, according to a report from Finbold, analysts anticipate that XRP is likely to experience a retracement before rallying to reach highs of nearly $0.81 between September and October.

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