Programmatic sales of XRP rules are attracting attention
The SEC filed Form C, Civil Pre-Appellate Statement, on October 17, providing investors with insight into appellate strategy. The SEC is targeting Ripple executives Brad Garlinghouse and Chris Larsen, and their challenge to programmatic sales rulings is significant.
If the SEC is successful in overturning this ruling, XRP will be subject to the SEC’s jurisdiction for sale on the secondary market. U.S. cryptocurrency exchanges may delist XRP to avoid violating U.S. securities laws, potentially impacting XRP adoption. Crypto tokens typically react negatively to delisting and positively to listing on major exchanges.
Ripple stablecoin and SEC delay
In August 2024, Ripple began testing the stablecoin Ripple USD (RLUSD). Importantly, Ripple said it has not received regulatory approval and RLUSD cannot be purchased or traded. The SEC may delay approval of RLUSD because the SEC mentions stablecoins in its response brief related to the relief package.
In its response brief, the SEC labeled Ripple’s stablecoin issuance plan as an issuance of a new, unregistered crypto asset.
XRP Price Outlook: Will it break above $1.00 or fall below $0.50?
Investors are awaiting opening briefs related to the SEC’s appeal. If the SEC highlights the problems with Judge Torres’ ruling and provides a sound argument, XRP could fall below $0.50. However, if the SEC presents a weak argument allaying fears of a successful appeal, XRP could reflect a rally to $0.9327 in July 2023.
Jeremy Hogan, a lawyer for cryptocurrency advocates, expressed his opinion on the SEC’s appeal:
“It’s just a matter of money. I’d say Ripple’s odds are 8-9/10. I don’t really understand how odds work, but the odds of Ripple winning at least one stock are 90. %, I think you have an 80% chance of winning on both major stocks.”
