SEC Vs. Ripple Decision Approaches, XRP Price Holds Steady Below $0.50

Despite a recent court ruling in the Binance vs. SEC case, XRP continues to struggle below the $0.50 mark. XRP’s price saw only a modest increase yesterday, rising by 0.23% after a 0.70% gain on Sunday. 

At press time, XRP is trading at $0.4857, showing an increase of 1.31% in the last 24 hours and a 2.31% increase over the past week. 

Investors awaited the pending court decision in the ongoing SEC vs. Ripple case. In July 2023, Judge Torres ruled that sales of XRP to institutional investors violated US securities laws. 

In March 2024, the SEC filed its remedies-related opening brief with the court, seeking an almost $2 billion penalty. The SEC also advocated for an injunction to halt XRP sales to institutional investors. 

The SEC argued that Ripple’s post-complaint activities closely resembled those that sparked the 2020 lawsuit. Ripple countered by emphasizing that post-complaint XRP sales were made to accredited investors or through ODL contracts, which do not involve profit or loss. 

Sales to accredited investors are exempted from US securities laws, and transactions through ODL contracts do not meet the Howey test’s criteria for profit expectations. 

Despite Ripple’s global expansion efforts, cautious investor sentiment is evident in XRP price trends. The SEC’s restriction on XRP sales to US institutional investors could potentially hinder Ripple’s expansion plans in the United States. 

Another factor to consider is the possibility of an SEC appeal against the ruling on Programmatic Sales of XRP. 

Furthermore, Judge Amy German Jackman’s dismissal of the SEC vs. Binance case references the Programmatic Sales of XRP ruling, criticizing the SEC’s approach as inconsistent with Supreme Court directives. 

Judge Rakoff’s differing opinion in the SEC vs. Terraform Labs case raises uncertainty about whether the SEC will appeal, impacting XRP’s short-term price trends.