TL;DR:
The US Securities and Exchange Commission has appealed a 2023 court decision in favor of Ripple. XRP price fell significantly in the following hours despite optimism that a potential US ETF would track its performance.
SEC complaint
CryptoPotato reported on the incident earlier this week. In it, U.S. securities regulators appealed a 2023 ruling by Judge Torres that ruled that secondary sales of XRP do not fall under the sales classification of securities.
Ripple’s management said it was not surprised and was committed to fighting the appeal, but the company’s native token quickly plummeted. XRP rose above $0.6 to around $0.51 before recovering slightly to find support at $0.53.
Many industry analysts maintain that the token’s fundamentals remain strong, and that the asset will soar in the coming months based on XRP’s performance after the SEC first went after Ripple in December 2020. Some speculated that it might be possible.
After this incident, XRP became the most talked about cryptocurrency in the community, but many continue to speculate as to whether the authorities actually have a chance of winning the appeal.
What is certain for now is that the SEC has not given up on attacking Ripple and the crypto industry, despite some blowbacks over the past few months. Many expected the lawsuit against Ripple to end with a judgment in 2024 that would force Ripple to pay a $125 million penalty instead of the $2 billion it had requested. , we will have to wait even longer for a conclusion to this nearly four-year-old lawsuit. long battle.
What about XRP ETF?
Since the launch of the ETF tracking the performance of Bitcoin (January 2024) and Ethereum (July 2024), the community has been speculating on which crypto asset will be the next to hold an exchange-traded fund in the US. .
While many have cited Solana as the most likely option, Bitwise is heading in a different direction. The crypto asset management company announced earlier this week that it had filed for a spot XRP ETF in Delaware.
However, this does not yet mean that Bitwise has filed an application with the SEC, the regulator that will decide whether these funds see the light of day. At the moment, the chances of an XRP ETF appearing are looking pretty slim given the ongoing battle between regulators and the companies behind the token. Still, registering an entity in a US state is a step in the right direction for Ripple.
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