XRP rallied 4.80% on Monday, ending the session at $0.5478.
Judge Analisa Torres granted the SEC request to dismiss the charges against Ripple execs and the push for a briefing schedule.
SEC v Coinbase case takes center stage as investors await ruling on Coinbase Motion to Dismiss.
The Monday Overview
On Monday, XRP gained 2.06%. Following a 4.80% rally on Monday, XRP ended the day at $0.5591.
SEC v Brad Garlinghouse and Chris Larsen: Judge Torres Makes It Official!
On Tuesday, Judge Analisa Torres signed the order, officially ending the SEC case against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.
Defense attorney James Filan shared the court order, ending 34 tumultuous months of uncertainty. In granting the SEC motion, Judge Torres stipulated,
“By November 9, 2023, the parties shall jointly propose a briefing schedule with regards to remedies, or, if the parties cannot agree, shall jointly request that the Court set a briefing schedule.”
An SEC willingness to allow the Court to arrange the briefing schedule suggests a desire to avoid trial.
The crypto community is hopeful for a settlement in the SEC v Ripple case, which supported a four-day winning streak. The crypto community remains divided about why the SEC to dropped the charges and plans to settle the institutional sales of XRP violations.
On the one side, the community sees the SEC eager to settle to avoid the Hinman speech-related documents from becoming a matter of public record. On the other, crypto advocates believe the SEC is brushing aside the remainder of the charges to expedite an appeal of the Programmatic Sales ruling.
As investors monitor SEC v Ripple case-related updates, the SEC v Coinbase (COIN) continued to draw investor attention.
SEC v Coinbase: SEC Attempts to Capture All in Court Filing
On Tuesday, Coinbase filed a reply brief to the SEC opposition filing to the Coinbase motion to dismiss (MTD). Coinbase argues the SEC lacks the statutory power to regulate the crypto space.
Coinbase Chief Legal Officer Paul Grewal had this to say,
“The SEC’s opp. to our motion for judgment claims roving authority over all investments, with ‘security’ and ‘contract’ in the statutes performing no limiting function at all. As our reply shows, that’s never been the law, and it’s not the law now.”
Grewal went on to say,
“By arguing that any purchase in which the buyer hopes for an increase in value constitutes an investment contract – and therefore a security- the SEC is attempting a radical expansion of its own authority. Only Congress can do that as the major questions doctrine makes clear.”
As background, the SEC charged Coinbase with allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additional charges included the unregistered offering and selling of securities in connection with its staking-as-a-service program.
CryptoLaw US founder and Amicus Curiae attorney John E. Deaton responded to the comments, saying,
“When I read the SEC’s opposition to Coinbase’s MTD I commented that it was one of the weakest legal briefs I’ve read as it was missing clear legal authority or precedent.”
“As I’ve maintained from the moment this MTD was filed, Coinbase has a real shot here. I think Judge Failla could grant the motion, at least partially on the asset sales, if not the entire case. I have the odds for a Coinbase victory at the District Court level, better than 50%, and at the 2nd Circuit level, better than 60%, and at the Supreme Court level, better than 80%.”
“Gary Gensler and the SEC’s days of unconstitutionally expanding Howey, are limited.”
If Judge Failla grants the Coinbase MTD, it would be a boon for Coinbase and the broader crypto market. Another SEC loss may also force US lawmakers to take the reins and introduce a regulatory framework that delivers clarity but fosters innovation.
XRP Price Action
XRPUSD 251023 Weekly Chart
XRP hovered above the 50-day and 200-day EMAs, sending bullish price signals. The 50-day EMA crossed through the 200-day EMA, confirming a near-term bearish trend reversal.
An XRP break above the trend line would support a move to the $0.5835 resistance level. Favorable SEC v Ripple and Coinbase case-related news would drive buyer demand.
However, a drop below the $0.5470 support level would bring the EMAs into view. A last-minute U-turn on SEC plans to approve BTC-spot ETFs or Coinbase losing its MTD motion would impact sentiment.
The 67.35 14-day RSI reading indicates a break above the trend line before entering overbought territory.
XRPUSD 251023 Daily Chart
In the 4-hourly Chart, XRP holds above the 50-day and 200-day EMAs, reaffirming bullish price signals.
An XRP move through the trend line could give the bulls a run at the $0.5835 resistance level.
However, a break below the $0.5470 support level would give the bears a run at the EMAs.
The 4-hourly RSI, with a reading of 72.19, shows XRP in overbought territory.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.