Ripple's XRP Holds Firm at $0.47 Amid Intensifying SEC Battle

Ripple’s XRP Holds Firm at $0.47 Amid Intensifying SEC Battle

1 July 2024

in XRP

Reading Time: 4 mins read

The outcome of SEC v Binance, where Judge Amy Berman Jackson rejected SEC’s claims on Binance’s BNB token, could set a precedent affecting XRP and broader crypto regulations.
John E. Deaton’s involvement with 75,000 XRP holders highlights the significance of court decisions in shaping future SEC rulings.

Amid the current developments in the SEC vs Ripple case, the native cryptocurrency XRP has shown some momentum, gaining 1.67% in the last 24 hours and moving past $0.48 as of press time. With this move, the XRP price has managed to overcome last week’s losses and could potentially be eyeing to challenge $0.50 if the momentum continues, per the CNF update.

As the SEC v Ripple case remains pending, the outcome of SEC v Binance could set a precedent affecting the broader crypto market, including XRP.

Judge Amy Berman Jackson recently rejected the SEC’s claim that secondary market transactions of Binance’s BNB token qualify as securities under the Howey test. Commenting on the ruling, a pro-XRP lawyer from Massachusetts, John E. Deaton, said:

I take HUGE pride in the fact that me and my SEVENTY-FIVE THOUSAND XRPHolders played a significant role in getting Judge Torres to rule as she did. Judge Torres not only cited my Amicus Brief (she cited other briefs as well) but also cited the thousands of affidavits we submitted by #RPHolders when she ruled sales of #XRP on exchanges did not violate securities laws. She ruled, as we requested: ‘XRP itself is not a security’.

John E. Deaton has filed an Amicus Brief representing 75,000 XRP holders who were part of the Programmatic Sales of XRP ruling. Notably, the court decision in SEC v Binance could also impact rulings in the SEC v Coinbase case, per the Crypto News Flash report.

Will CFTC Oversight Benefit XRP And the Crypto Market?

XRP and the broader cryptocurrency market stand to gain from the increased involvement of the Commodity Futures Trading Commission (CFTC) for several reasons:

Clarifying Securities Status: Resolving the debate on whether cryptocurrencies are securities could open the door for XRP-spot ETFs and a wider crypto-spot ETF market.
Supporting Key Legislation: Greater CFTC involvement could bolster the passage of the Lummis and Gillibrand Responsible Financial Innovation Act, which would grant the CFTC more authority over the U.S. digital asset space and promote innovation while protecting consumers.
Reducing Regulatory Burdens: It could also decrease the likelihood of the Digital Asset Anti-Money Laundering Act becoming law, which proposes stringent anti-money laundering (AML) and countering the financing of terrorism (CFT) frameworks for digital assets under the SEC’s jurisdiction.

The Responsible Financial Innovation Act, a bipartisan bill, would give the CFTC more regulatory power to support technological advancement while safeguarding U.S. consumers.

In contrast, the Digital Asset Anti-Money Laundering Act, drafted by Senators Elizabeth Warren and Roger Marshall with input from the American Bankers Association, seeks to apply banking-style regulations to the digital asset industry under the SEC’s control.

In summary, court rulings that cryptocurrencies are not securities could strengthen the CFTC’s role, fostering a more innovation-friendly environment and potentially facilitating the approval of spot XRP ETFs while reducing regulatory challenges, as reported by Crypto News Flash.

XRP Price Action

XRP remains significantly below the 50-day and 200-day EMAs, reinforcing the bearish price trends.

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A move above these trend lines could allow bulls to target the 50-day EMA. Breaking above the 50-day EMA would support a further move toward the 200-day EMA and the $0.55 mark.

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Investors should closely monitor updates related to SEC vs. crypto cases and the SEC’s response to the Binance ruling. On the downside, if XRP falls below the $0.4650 level, it could pave the way for a further decline towards the $0.45 mark.