XRP News Today: Ripple Wins in Court But Security Question Remains

Bob Mason
Published: Jun 22, 2024, 05:30 GMT+00:00

Key Points:

  • On Friday, June 21, XRP gained 0.02%, closing the session at $0.4892.
  • Ripple case-related news garnered investor interest as investors awaited the SEC vs. Ripple verdict.
  • SEC vs. crypto case-related news and SEC activity require investor attention on Saturday, June 22.
XRP News Today

In this article:

The Friday Overview

On Friday, June 21, XRP gained 0.02%. Partially reversing a 0.95% loss from Thursday, June 20, XRP closed the session at $0.4892.

Ripple Wins Partial Victory in Court: What It Means for XRP and the Crypto Market

On Friday, June 21, the Californian courts granted Ripple a procedural win in a class action suit about XRP.

Ripple CEO Brad Garlinghouse provided a detailed review of the court ruling, addressing inaccurate headlines, saying,

“To be absolutely clear, this is a big win – all class action claims in the suit were DISMISSED, and absolutely nothing in the decision negates or changes the fact that XRP is, in and of itself, not a security (per the NY Court decision). The CA ruling dismissed all allegations that Ripple had somehow violated federal securities law by selling XRP.”

Garlinghouse added,

“As for the single state law claim that will now be scheduled for trial: the sole plaintiff didn’t buy XRP directly from Ripple and can’t say if he even heard the statement before he traded and only owned a couple hundred XRP. This was a clear example of the trolls that unsuccessfully tried to take advantage of the US legal system and distort statements to seek 100’s of millions in class action settlements.”

Ripple Chief Legal Officer Stuart Alderoty provided his view on the ruling and trial, saying,

“To be clear – the CA judge dismissed all allegations suggesting that Ripple violated federal securities law. The NY ruling that XRP is not a security stands undisturbed. One state law claim, based on a 2017 statement, is going to trial. The plaintiff — who didn’t buy directly from Ripple and can’t say if he even heard the statement before he traded — allegedly lost a couple hundred $. We look forward to that cross-examination.”

While a win is a win, the trial on whether XRP is a security will remain the focal point. A court ruling for Ripple would further cement XRP as a commodity and pave the way to a US XRP-spot ETF market.

Significantly, if the courts deem XRP a security, the SEC could file an appeal against the Programmatic Sales of XRP ruling. The lingering threat of the SEC appealing the ruling remains a headwind, with XRP chained below the $0.50 handle.

SEC vs. Ripple: Remedies-Related Verdict Awaited

There were no SEC vs. Ripple case-related updates to consider on Friday. Investors awaited the court ruling on the penalty Ripple must pay for breaching US securities laws.

Considering the recent court filings, the penalty could range between $10 million and $2 billion. Furthermore, the courts could grant the SEC request for an injunction prohibiting XRP sales to institutional investors.

A $10 million penalty and an end to SEC plans to appeal against the Programmatic Sales of XRP ruling could support an XRP return to $1.00.

On July 13, XRP rallied to a 2023 high of $0.9327 before retracing to sub-$0.50 on the SEC threat of an appeal.

How do you think SEC actions will impact XRP?

XRP Price Action

XRP Weekly Chart sends bearish price signals.
XRPUSD 220624 Weekly Chart

Daily Chart

XRP hovered well below the 50-day and 200-day EMAs, confirming the bearish price trends.

A break above the trend lines would support a move toward the 50-day EMA. A breakout from the 50-day EMA could give the bulls a run at the 200-day EMA.

SEC vs. crypto case-related news requires investor attention.

Conversely, a fall through the $0.48 handle could give the bears a run at the $0.45 handle.

With a 14-day RSI reading of 43.61, XRP will likely fall to the $0.45 level before entering oversold territory.

Daily Chart affirms bearish price signals.
XRPUSD 220624 Daily Chart

About the Author

Bob Masonauthor

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.

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