As the deadline for the U.S. Securities and Exchange Commission (SEC) to file an appeal in the Ripple lawsuit approaches, the crypto world is buzzing with speculation. October 7 marks the 60-day deadline for the SEC to make its next move, and legal experts are divided on whether the agency will appeal Judge Analisa Torres’ ruling that XRP is not a security. With the clock ticking, traders and investors are watching closely, as a potential appeal could significantly impact the price of XRP.
Ripple’s Clear Stance – No Appeal
Ripple’s executives have been clear about their position: they do not plan to appeal. Public statements from Ripple have repeatedly affirmed that they consider the case closed. Despite Ripple’s confidence, the SEC remains undecided, keeping market participants on edge.
While Ripple executives, such as Chairman Chris Larsen, have moved large amounts of XRP ahead of the Ripple Swell event, speculation is rising over how the SEC’s decision could influence the market. If the SEC chooses not to appeal, it would be a landmark victory for Ripple, potentially setting a precedent for other crypto cases.
Experts Predict a 75% Chance of SEC Appeal
Legal experts tracking the case, including former SEC lawyers Marc Fagel and James Farrell, estimate a 75% likelihood that the SEC will appeal, though this isn’t guaranteed. Farrell suggests that the SEC might specifically target the liability portion of the ruling, especially concerning the classification of secondary sales of digital assets as securities. The agency’s recent filings in the Binance lawsuit and oversight hearings have raised further questions about its regulatory strategy.
Ashley Prosper, an XRP expert closely monitoring the Ripple case, noted that the SEC might aim to maintain its stance that secondary sales of XRP could be considered securities. Prosper highlighted that while the core judgment of XRP itself not being a security is unlikely to be challenged, the SEC could still seek to push a broader regulatory narrative regarding digital assets.
Gary Gensler’s Testimony and Implications for Crypto
SEC Chairman Gary Gensler’s recent testimony to the U.S. House Financial Services Committee suggested a continued push to regulate the crypto industry, particularly secondary market sales. Gensler also emphasized his belief that non-fungible tokens (NFTs) are securities, referencing the Flyfish Club’s fine for unregistered NFT sales. This ongoing regulatory crackdown may influence the SEC’s decision on whether to file an appeal against Ripple.
However, despite Gensler’s strong stance, there are hints that the SEC might not follow through with an appeal. The government agency’s handling of other cases, such as the Binance lawsuit, signals a possible retreat from challenging Judge Torres’ summary judgment.
As the deadline approaches, XRP’s price remains relatively stable, hovering around $0.58. However, analysts predict a 25% rally in XRP to $0.75 in October, assuming market conditions remain favorable. Increased trading volume suggests that investor interest in XRP is growing, with the potential for a bullish breakout.
Also Read: Ripple vs. SEC – 60% Chance Of Appeal As XRP Price Drops 0.78% Ahead Of October 7 Deadline
Historically, XRP has performed well in the fourth quarter, and some analysts believe that the token could see a surge to $1 if the SEC decides not to appeal. A broader rally in Bitcoin, along with positive sentiment following the lawsuit’s conclusion, could also fuel a longer-term run to $2 by 2025.
The Ripple Effect
As the October 7 deadline looms, the SEC’s decision holds immense weight for both Ripple and the broader cryptocurrency market. Whether the agency appeals or lets the ruling stand, the outcome will likely shape the regulatory landscape for digital assets for years to come.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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