The last leg hanging in the Ripple vs SEC case is the only factor that troubled the experts globally is the Secondary sale issue with XRP. Now since the final appeal re-appeal window is open for 60 days it has reignited discussions about whether secondary sales of XRP should be classified as securities.
This issue has taken center stage following the SEC’s recent Wells Notice against NFT marketplace Opensea, which alleges that certain non-fungible tokens (NFTs) may qualify as securities.
Although Judge Torres did not explicitly rule on secondary sales in the Ripple case, she noted that a “programmatic buyer stood in the same shoes as a secondary market purchaser.”
Many have interpreted this statement as an acknowledgment that secondary sales are not securities.
Legal Experts Weigh In on Secondary Sales
Former SEC lawyer Marc Fagel and pro-XRP attorney Bill Morgan have both expressed their views on the matter. Fagel agreed that while Judge Torres didn’t directly address secondary market sales, her comparison of programmatic sales to secondary market transactions strongly suggests they are not securities.
Whereas, Morgan also highlighted that in the Ripple vs SEC case, Judge Torres ruled that XRP itself is not a security, challenging the SEC’s broader claims. This perspective aligns with other recent rulings in the crypto space, including decisions in cases involving Kraken and Binance, where the courts emphasized the need to distinguish between the nature of a crypto asset and its sale.
The SEC’s Dilemma: To Appeal or Not to Appeal
Moreover, as the SEC contemplates its next move, it faces a tough decision. The agency has about 40 days left to appeal Judge Torres’ ruling, but doing so carries significant risks. If the SEC were to lose an appeal in the Second Circuit Court, it could set a binding precedent that would affect future cases involving crypto assets.
The Second Circuit has already ruled in favor of Coinbase, determining that secondary market sales of crypto are not securities, adding more weight to the argument against the SEC’s position. Many believe the SEC will likely avoid appealing the Ripple case due to the potential consequences.
XRP On Thin Ice
XRP’s price has remained relatively stable, trading just below $0.60 despite the ongoing legal uncertainty. In the last 24 hours, XRP saw a modest 1% increase, fluctuating between $0.566 and $0.576. However, trading volume has decreased by 40%, reducing traders’ interest.
Despite this, there’s optimism that September could bring a bullish turn for XRP, with predictions suggesting a potential rally to $0.75 or even $1. Ripple’s strong fundamentals and increased whale activity in XRP futures are seen as positive indicators for a price breakout shortly.
