In the latest development surrounding the cryptocurrency landscape, the US Securities and Exchange Commission (SEC) has ignited fresh concerns by seeking a mid-case appeal in its lawsuit against Ripple.
With the backdrop of increasing regulatory ambiguity, the crypto community is left wondering about the fate of XRP. As tensions escalate, speculation grows: Could this legal tug-of-war potentially send XRP’s price crashing to zero?
Let’s delve into the details and gauge the possible repercussions of this unfolding scenario.
SEC Seeks Mid-Case Appeal in Ripple Lawsuit Amidst Regulatory Ambiguity
The US Securities and Exchange Commission (SEC) has recently made a compelling case for the necessity of a mid-case appeal in the ongoing legal battle between the agency and Ripple Labs.
This legal tussle centers on the classification of XRP, Ripple’s cryptocurrency, as a security. The SEC’s latest move is intriguing, given Chairman Gary Gensler’s previous assertions that existing guidelines adequately cover the crypto market.
The SEC’s appeal is rooted in what it refers to as “knotty legal problems” surrounding the application of the Howey Test, a critical framework for determining whether an asset qualifies as a security.
The agency contends that Judge Analisa Torres’ ruling in July, which held that XRP was generally not a security, especially when distributed via programmatic sales, has raised significant legal questions.
These questions have prompted the SEC to seek an interlocutory appeal, a rare occurrence, to address industry-wide concerns.
The heart of the matter lies in the uncertainty surrounding whether certain crypto assets, like XRP, fall under the classification of investment contracts under the Howey Test.
This ambiguity is compounded by contradictory conclusions reached in similar cases within the district and the ongoing deliberations in various courts. The SEC argues that these issues warrant immediate attention.
However, this appeal seems to contradict Chairman Gensler’s previous stance on crypto regulation. Gensler has consistently maintained that the SEC’s guidelines sufficiently cover the crypto market, asserting that most cryptocurrencies qualify as securities.
This apparent shift in position has not gone unnoticed, with Ripple’s chief legal officer, Stuart Alderoty, calling the SEC’s filing “hypocritical.”
Coinbase’s chief legal officer, Paul Grewal, also weighed in, raising concerns about how crypto firms can be expected to comply with unclear regulations. He questions how they can be on “fair notice” if the SEC is now acknowledging the existence of “knotty legal problems.”
The SEC’s insistence on a mid-case appeal reflects the complexity of the legal issues surrounding the XRP lawsuit. Whether Ripple violated securities laws in making XRP available to retail investors through crypto exchanges remains a pivotal question.
If Judge Torres grants the SEC’s motion, the case will advance to the Second Circuit Court of Appeals, where these legal intricacies will be examined in greater detail.
XRP Price Prediction
Following a detailed examination of Ripple (XRP), the cryptocurrency appears to be in a consolidation stage, anchored between the 0.4900 and 0.550011 markers.
Such consolidation typically points to a balanced contest between buyers and sellers, highlighting prevalent market uncertainty.
This ambivalence is also echoed in the varied behaviors of primary metrics, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD).
While the RSI stays in a neutral zone, the MACD offers contrasting signals, as seen from its diverging lines.
Should XRP dip beneath its crucial 0.4900 support, we could see a fallback to around the 0.4500 range, and potentially even nearing the 0.40011 mark.
Conversely, breaking past the 0.5500 barrier might lead XRP to face resistance near 0.5800, with an even stiffer challenge around the 0.6590 level.
Ultimately, the focal point for the day’s projection is the 0.4800 threshold. While a bullish breakout is conceivable, investors should tread carefully.
A fall below this key point might shift momentum in favor of a bearish perspective, targeting the 0.4050 level.
Wall Street Memes – The Alternative Coin Worth Considering
Currently, individual investors are exploring diverse investment avenues in the crypto domain, with WSM catching many eyes. The presale of $WSM, a meme-based cryptocurrency, has sparked considerable buzz in the investor community.
The coin is the brainchild of Wall Street Memes, a well-known online forum known for its engagement with these investors.
The coin’s presale kicked off on May 26, 2023, accessible through the official portal wallstmemes.com. During the first phase out of thirty, the WSM token was pegged at $0.025.
Wall Street Memes’ cryptocurrency initiative has witnessed remarkable enthusiasm, accumulating over $300,000 on its debut day and amassing a total of $25 million.
Currently, in the ongoing presale stage, the WSM tokens are available at $0.0337.
Don’t miss out on this promising opportunity, as it holds substantial growth potential. Seize the chance to invest in Wall Street Memes and be at the forefront of this exhilarating journey.
Buy $WSM Here
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
Read the full article here