Upon the conclusion of the SEC v Ripple case, the crypto community expect the SEC to appeal the court ruling on the Programmatic Sales of XRP.
XRP declined by 0.48% on Tuesday, ending the session at $0.6212.
SEC requests the presiding judge in the SEC v Terraform Labs case to rule on the classification of crypto assets.
SEC activity and SEC v Ripple case-related news will remain focal points on Wednesday.
The Tuesday Overview
On Tuesday, XRP declined by 0.48%. After a 0.22% gain on Monday, XRP ended the session at $0.6212.
SEC Activity Leaves XRP in Negative Territory
On December 4, 2023, the SEC filed a motion to Judge Jed S. Rakoff, requesting the court to determine the classification of certain crypto assets. According to the filing, the SEC stated,
“[…] Plaintiff Securities and Exchange Commission (“SEC”) respectfully submits that the determination of whether Defendants’ crypto assets as offered and sold by Defendants, are securities is a legal question to be determined by the Court, not a factual question for the jury.”
The SEC added,
“This is particularly true in this case, where there is no genuine dispute of material fact that Defendants’ crypto asset offerings involved as an investment of money, in a common enterprise, with an expectation of profit to be derived from Defendants’ efforts, thus satisfying the investment contract test set forth in SEC v. W.J Howey Co. […].”
Significantly, the SEC made another move to categorize crypto assets as securities. On this occasion the SEC is asking for a court ruling as opposed to a jury trial. Judge Rakoff previously criticized the XRP Programmatic Sales ruling.
There was no SEC v Ripple case-related news to warrant investor attention on Tuesday. However, the latest SEC move reinforces bets on the SEC appealing the Programmatic Sales ruling.
In October 2023, the Court rejected the SEC interlocutory appeal relating to the Programmatic Sales ruling. Since the court ruling, the SEC has expedited the case against Ripple. The SEC dropped the charges against Ripple co-founder Chris Larsen and CEO Brad Garlinghouse shortly after the court ruling.
Notably, the SEC and Ripple are currently progressing through remedies-related discovery. The court briefing schedule requires the parties to complete discovery by February 12, 2024. After discovery, the SEC must file its remedies-related brief by March 13, 2024. Ripple must then file its brief by April 12, 2024, after which the SEC must file any reply brief by April 19, 2024.
Unlike an interlocutory appeal, the SEC must wait until the case ends to appeal any court rulings.
XRP Price Action
XRPUSD 061223 Weekly Chart
XRP remained above the 50-day and 200-day EMAs, sending bullish price signals.
An XRP move through the $0.6354 resistance level would give the bulls a run at the $0.65 handle.
SEC activity and SEC v Ripple case-related news remain the focal points on Wednesday.
However, a break below the 50-day EMA would bring the $0.5835 support level into play.
The 14-day RSI reading of 52.71 indicates an XRP return to $0.65 before entering overbought territory.
XRPUSD 061223 Daily Chart
On the 4-hourly, XRP sat above the 50-day and 200-day EMAs, affirming bullish price signals.
An XRP break above the $0.6354 resistance level would support a move to the $0.65 handle.
However, an XRP fall through the EMAs would give the bears a run at the $0.5835 support level.
The 4-hourly RSI, with a reading of 53.47, indicates an XRP move to the $0.65 handle before entering 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.