XRP Plummets as SEC Appeal Looms and Ripple Network Faces Challenges
The XRP token has crashed as the Ripple network faces major headwinds.
On Tuesday, the XRP price saw a negative breakout after the Securities and Exchange Commission (SEC) appealed a 2023 court order.
Ripple also sank to a low of $0.5275, significantly lower than the September high of $0.6657.
First, the SEC decided to appeal a ruling made last year that said that XRP was not a security. If the agency wins this appeal, then it means that many exchanges may decide to delist in.
There are also rumours that the SEC will appeal a recent ruling in which Ripple Labs was forced to pay a $125 million fine, much lower than the $2 billion that the SEC was asking for.
The other big challenge Ripple Labs is facing is that XRP Ledger, which is its Ethereum alternative, is not gaining traction among developers and investors.
Data compiled by DeFi Llama shows that the network has attracted only 3 dApps with a total value locked (TVL) of over $14.6 million. Most of these funds are in Ripple’s own XRPL DEX, and their amount has held steady in the past few weeks, meaning that it is not seeing any activity.
Ripple Risks Legal Setback After Missing Key Court Filing Deadline in SEC Case
Ripple Labs risks a procedural setback in its legal dispute with the SEC after missing a critical filing deadline.
Yesterday, the US Court of Appeals for the Second Circuit sent a default notice to Ripple’s legal team, citing a missed deadline to submit an Acknowledgment and Notice of Appearance form, which was due October 18, 2024.
The court has given Ripple a 14-day extension, giving the group until November 1, 2024, to file the necessary documents.
🚨 BREAKING:
NEW RIPPLE VS. SEC FILING FROM TODAY:
„The court has not received the acknowledgment and notice of appearance on the due date October 18, 2024!“
Remember: „If they do not comply with these requirements within 14 days their appeal will be dismissed!“ #XRP pic.twitter.com/wQPjtAPgrr
— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) October 22, 2024
If Ripple’s lawyers fail to fulfill this new deadline, they risk being prevented from presenting their arguments at the upcoming appeal hearing unless they get special court authorization.
This filing delay jeopardizes Ripple’s defense strategy in its appeal against the SEC.
Legal experts, like as attorney Fred Rispoli, have remarked on the situation, stating that, while the missed file may appear minor, it is nonetheless a preventable error, especially given the expensive legal fees Ripple is paying.
Brad Garlinghouse Responds to Elon Musk’s Remarks on XRP
Following Elon Musk’s recent comments on cryptocurrency, Ripple CEO Brad Garlinghouse tweeted a reaction on Elon Musk’s recent discussion of cryptocurrency when questioned about the future possibilities of XRP during one of his public talks.
⚠️Ripple CEO Brad Garlinghouse has thrown his weight behind Elon Musk’s latest comments on XRP, calling for politicians to wake up to the power of crypto. Garlinghouse’s fiery message came after Musk was asked whether the XRP Ledger could play a role in the future of financial…
— Crypto News Hub (@UK_CryptoNews) October 21, 2024
When asked if the XRP Ledger may be adopted into financial institutions in the future, given the SEC’s negative attitude of it under its present administration lead by Gary Gensler, Musk stated that he saw cryptocurrency as an intriguing “bulwark” against “centralized control.” Overall, he believes crypto by its essence supports with individual freedom.
However, Elon Musk clarified that it was definitely not an endorsement or lack of endorsement for XRP.
This prompted Brad Garlinghouse’s reply. According to the Ripple CEO, users “care about crypto – they care about XRP” and “it’s not a niche issue.” According to the Ripple CEO, customers are concerned about cryptocurrency laws and want real policies that foster innovation and generate jobs.
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