In the ongoing legal showdown between Ripple and the U.S. Securities and Exchange Commission (SEC), Ripple has made a resolute stand against the SEC’s recent attempt to certify an interlocutory appeal. This move comes at a time when Ripple appears confident that the court will ultimately find its response to the SEC’s allegations legitimate.
The legal battle, which has been ongoing since December 2020, revolves around the SEC’s contention that Ripple’s transactions involving XRP over the past eight years constituted investment contracts, essentially classifying them as securities.
What Ripple’s Opposition is All About?
Ripple’s opposition to the SEC’s interlocutory appeal is multi-faceted, with the cryptocurrency company, including its top executives Brad Garlinghouse and Christian A. Larsen, strongly objecting to the SEC’s efforts to pursue this legal route.
The SEC filed for an interlocutory appeal citing that the Ripple case raises legal issues with far-reaching implications for the entire digital asset market. They argue that the current court ruling doesn’t revolve around a “controlling question of law” that justifies an appeal in the middle of the legal process. Moreover, it appears that the SEC’s “substantial ground for disagreement” centers on their dissatisfaction with how the court applied the Howey test in this particular case.
In contrast, Ripple contends that the lawsuit is destined to be complex and time-consuming, irrespective of the outcome of the interlocutory appeal. Ripple and the individuals accused also challenge the SEC’s request for a stay, highlighting that the SEC has failed to provide adequate reasons for its necessity.
At the heart of the matter lies the application of the Howey test, which serves as the foundation for evaluating how Ripple operates. Ripple suggests that the SEC might be adjusting its “litigation positions” based on its desired outcomes rather than adhering strictly to the law.
John Deaton weighed in on the matter, stating, “Footnote 2 destroys the SEC’s argument on this matter.”
What to Expect in Saturday Session?
In the upcoming legal session, observers will closely watch not only the Ripple vs. SEC case but also the SEC vs. Coinbase (COIN) case, both of which could have substantial implications for the U.S. cryptocurrency industry. The submissions of the Court’s Amicus Curiae to dismiss the SEC’s allegations against Coinbase may prove significant. Meanwhile, Judge Failla recently dismissed the Uniswap case, adding further intrigue to the unfolding legal landscape. The repercussions of these legal proceedings on XRP’s price remain under scrutiny.
XRP Price
In terms of market impact, XRP has experienced a recent decline in value, falling below crucial technical levels. The SEC’s pursuit of an interlocutory appeal will be a pivotal factor influencing XRP’s price movement. A favorable perception of Ripple’s opposition filing could potentially break the current downward trend, with the 200-day Exponential Moving Average (EMA) emerging as a possible target. Presently, XRP is teetering below the psychologically significant support levels of $0.50 and $0.5042.
As the Ripple vs. SEC legal saga continues, it not only shapes the future of this particular cryptocurrency but also casts a significant shadow over the broader U.S. cryptocurrency landscape. The outcome of this high-stakes battle will undoubtedly be of great interest to industry stakeholders and enthusiasts alike.
