- Ripple’s top lawyer anticipates possible SEC appeal; asserts XRP’s status as non-security remains unaffected by further actions.
- U.S. District Judge Analisa Torres confirms secondary sales of XRP are not securities, setting precedent despite potential appeals.
In a discussion with J.W. Verret, a professor specializing in securities law, Stuart Alderoty, the Chief Legal Officer of Ripple, shared his expectations of a potential appeal by the U.S. Securities and Exchange Commission (SEC) against a recent court ruling.
Alderoty stated that such an appeal would not alter XRP’s status as a non-security.
What if the SEC appeals the @ripple case? @s_alderoty @JWVerret pic.twitter.com/xoaAAewjcy
— Digital Asset Investor (@digitalassetbuy) August 15, 2024
This perspective comes after Judge Analisa Torres’s decision, which confirmed that secondary sales of XRP are not considered securities. This judgment remains effective regardless of any future appeals by the SEC, Alderoty clarified.
Ripple Triumphs: Judge Slashes SEC Penalties, Upholds XRP’s Status in Landmark Ruling
Judge Analisa Torres imposed a $125 million penalty on Ripple for selling #XRP as an unregistered security to institutional investors. However, she denied the #SEC's request for nearly $2… pic.twitter.com/XopqlfAecw
— fiatleak (@fiatleak) August 12, 2024
Earlier in the month, Judge Torres concluded the legal proceedings between Ripple and the SEC, imposing a fine of $125 million on Ripple. Despite the financial penalty, Ripple perceived the outcome as favorable, underscoring its longstanding contention with the regulatory body.
Alderoty, speaking on CNBC, highlighted that the SEC failed to prevail in critical areas of the lawsuit. He noted that the agency has a 60-day window to appeal the decision.
Elliott Stein, a senior litigation analyst at Bloomberg, commented that Ripple’s legal victory could influence other ongoing regulatory challenges facing companies like Coinbase.
Alderoty also remarked on the potential influence of the court’s decision on the broader cryptocurrency market, suggesting it could have extensive implications.
He criticized the SEC’s approach to cryptocurrency regulation, arguing it has strayed from its fundamental mission. However, he expressed hope that the resolution of Ripple’s case might encourage a more favorable regulatory environment for the cryptocurrency industry.
XRP Price Influences and Future Projections
The recent discussion by a crypto analyst highlighted several factors that could influence the price trajectory of XRP, Ripple’s native cryptocurrency. The focal points included Ripple’s potential Initial Public Offering (IPO) and the introduction of RLUSD, Ripple’s stablecoin. These developments are anticipated to have a direct impact on XRP’s market valuation.
Furthermore, the analyst pointed out the absence of legal hurdles that previously hindered XRP’s price growth, suggesting a favorable environment for its appreciation. The term “alt season” was used to describe a period when alternative cryptocurrencies, like XRP, tend to experience significant price increases.
The analyst predicts that XRP could reach new heights during such a phase, driven by both speculative interest and its evolving utility.
In terms of specific figures, some market observers are forecasting a surge in XRP’s price to $8 by year-end, while a more immediate target of $1 by the end of August has been suggested.
Despite these optimistic views, there is a consensus that the market remains unpredictable, though expectations for an impending ‘alt season’ are high.
Institutional interest is also a driving factor for XRP’s potential rise in value
With more institutions expected to accumulate XRP, the supply could become more limited, thereby possibly driving up its price. Notably, Japanese banks and entities like SBI Ripple Asia are increasingly adopting XRP for cross-border payments, which bolsters its utility and, by extension, its appeal to investors.
Regulatory clarity is another critical element that could affect XRP’s adoption and price. Clear regulations are seen as essential for fostering broader acceptance of XRP within the financial sector.
The analyst believes that decisive regulatory support could be a transformative moment for XRP, enhancing its legitimacy and use in mainstream finance.
