Ripple's Partial Victory

Ripple and the XRP community are celebrating a partial victory in their long-standing legal battle with the U.S. Securities and Exchange Commission (SEC).

The final judgment, delivered on August 7, 2024, declared that XRP is not inherently a security, a decision that has sparked mixed reactions within the crypto community. However, the fight might not be over just yet.

SEC's Silent Stance

Since the ruling, the SEC has remained silent, fueling speculation about its next steps. The SEC has until September 2024 to decide whether to appeal the court's ruling in its case against Ripple.

Some believe that recent court criticisms of the SEC's stance on crypto assets might impact its decision. Speculation is growing about the regulator's next move.

Garlinghouse's Reassurance

Amid this uncertainty, Ripple's CEO, Brad Garlinghouse, spoke at Korea Blockchain Week (KBW2024) to address concerns about a potential SEC appeal. He confidently stated that there is no credible path for the SEC to challenge the core ruling that XRP is not a security.

Garlinghouse also suggested that the SEC's aggressive approach toward cryptocurrencies might change with upcoming leadership shifts after the U.S. elections. He noted that the nearly four-year-long lawsuit could finally be nearing its end.

Legal Insights

Supporting this view, pro-crypto lawyer Bill Morgan highlighted the regulatory differences between the U.S. and other countries. He noted that the court's ruling clearly states that XRP itself is not a security, which poses significant challenges for the SEC to argue otherwise.

Market Reactions

XRP has experienced relatively modest losses compared to the broader crypto market, likely due to speculation that the SEC may not appeal. The token currently sits below the 50-day EMA but remains above the 200-day EMA, signaling a mixed outlook. If the SEC does appeal, XRP could see a drop below $0.40.

However, if the SEC opts not to appeal, XRP could rally towards $1.00, mirroring its response to the court's ruling on the Programmatic Sales of XRP. As of now, XRP is trading around $0.55, showing a 3% decline in the last 24 hours. Despite this drop, XRP's trading volume has surged by 27%, with a market cap of $30.9 billion.