XRP Price Sinks 3% but Keeps Grip on $0.50 as SEC Throws Hail Mary

Key Points:

• The XRP price has lost 3% in the past 24 hours but has not dipped below $0.50. 
• The U.S. SEC has filed a letter to support its case against Ripple.
• Ripple is building a CBDC or stablecoin with Montenegro. 

XRP has pulled back 3% to the $0.50 area after a rally that took it to almost $0.53 rally lost steam. The setup still appears bullish as the No. 6 crypto seemingly gathers steam to attempt another breakout. 

The XRP price has hinged on a verdict in the SEC case, which has been largely expected to go in Ripple’s favor. The case has been dragging on for two years, and the XRP army expects XRP has more runway for gains once it is decided. Whether or not a favorable outcome could send XRP back to the $1 level remains to be seen. Meanwhile, it appears that the SEC is looking to stall. 

SEC vs. Ripple

The SEC has filed a letter of supplemental authority in which it presents a fresh legal argument. The regulator is looking to leverage a decision in a separate case it is involved in against its nemesis Ripple. 

In the aforementioned case, a Massachusetts court ruled in favor of the SEC for a summary judgment while denying the defendant’s (Commonwealth Equity Services’) cross-motion for the same. The court found that Commonwealth Equity “violated negligence-based provisions of the…Advisers Act…relating to its failures to disclose certain conflicts of interest.” 

Now the regulator wants to use that ruling as further legal precedent in its case against Ripple in an attempt to weaken the blockchain company’s argument for a “fair notice defense.” The XRP army is calling the SEC’s bluff on social media, arguing that the regulator is looking to use this as a delay tactic in a case that has been going Ripple’s way. 

Ripple and Montenegro’s CBDC

The ongoing SEC lawsuit doesn’t appear to be cramping Ripple’s style. The blockchain-based cross-border payments company has partnered with Montenegro for a central bank digital currency (CBDC) project. Ripple will drum up a digital currency strategy and a pilot program for a CBDC or a stablecoin. While details of a CBDC or stablecoin are sparse, Montenegro uses the euro as its fiat currency.