- Investors are concerned that the US SEC might appeal the programmatic sales of the XRP verdict.
- The US election and slowing regulatory crackdown are factors to consider.
This week, Judge Analisa Torres delivered one of the most important legal verdicts in the digital currency ecosystem involving XRP. The ruling, which mandated Ripple Labs to pay a $125 million fine to the US SEC, caused the coin’s initial price growth. However, uncertainties around the next steps for the markets regulator have left investors wondering what to expect next.
Short-Term Victory Burst for Ripple and XRP Investors?
Since December 2020, when former SEC Chair Jay Clayton filed the lawsuit against Ripple Labs, XRP investors have looked forward to an end to the case. Despite the summary judgment coming about a year ago, this week’s remedy ruling gave investors unique closure.
The SEC and Ripple CEO Brad Garlinghouse have reacted to the $125 million payment. In a statement shared with Fox Business Journalist Eleanor Terrett, the SEC considers the $125 million penalty a win. This is because the amount is significantly above the $10 million Ripple argued to pay, as we reported earlier. Also, the regulator believes the injunction barring Ripple from committing additional securities law violations is important.
The Ripple CEO said that with the ruling, the company could now focus on growth initiatives.
Following the verdict, the price of XRP skyrocketed by up to 20% on Wednesday. The growth rate pushed XRP to its highest weekly price level at $0.6416. However, the price has since reversed this growth. At the time of writing, XRP is changing hands for $0.5899, down by 4.15% in 24 hours.
This reversal stems from the uncertainty that the US SEC may appeal the programmatic aspect of Judge Torres’s July 13, 2023 ruling. This potential appeal is speculative, and the next 60 days will determine the next steps.
Until the SEC confirms it will not appeal the clause clarifying XRP traded on exchanges, investors might have reason to exercise caution in embracing the coin.
Changing Regulatory Terrain
As highlighted in our recent article, the US SEC consistently faces backlash for its regulation by enforcement style. Though enforcement remains the default approach for the regulator, the tides may change in the coming months.
The forthcoming US elections, featuring Donald Trump and Kamala Harris, might force the SEC to reduce its crackdown measures. With crypto votes at stake, both parties want to get things right with industry members.
As previously mentioned in our report, Donald Trump is a foot ahead of the trend after he announced he might sack SEC Chair Gary Gensler if he wins the election.
As Ripple and the XRP lawsuit are regarded as among the highest-profile cases in the crypto world, appealing close to the elections might cause bad press for Kamala Harris’ campaign. This factor is worth noting as the industry awaits the next move from the SEC.
