Ripple’s legal battle with the US Securities and Exchange Commission (SEC) continues to generate significant attention within the crypto community. The case has now entered a new phase, and it’s important to provide some clarifications regarding the recent developments.
A Brief Recap
In a major ruling last month, Judge Analisa Torres declared that secondary sales of XRP do not qualify as investment contracts. This ruling was seen as a victory for Ripple, leading to a nearly 100% surge in the price of XRP, with the cryptocurrency reaching a high of close to $0.90.
Recent Price Volatility
However, since then, XRP has experienced a significant decline, losing almost 50% of its value. Currently trading at around $0.50, the cryptocurrency suffered a crash of more than 15% in the past 24 hours alone.
While Ripple saw the Judge’s ruling as a win, the SEC was not satisfied. Last week, the Commission filed an interlocutory brief, indicating its intention to appeal the ruling. Ripple, on the other hand, opposed the appeal, arguing that there are no exceptional circumstances justifying a departure from the rule that requires all issues to be resolved before an appeal can be made.
Court Grants SEC’s Request
Despite Ripple’s opposition, the US District Court for the Southern District of New York has granted the SEC’s request to file a motion for an interlocutory appeal. It’s important to note that this decision does not automatically grant the appeal itself. It simply authorizes the SEC to request an interlocutory appeal.
Clarification from Legal Expert
To clarify any misunderstandings, James Filan, a defense lawyer and former federal prosecutor, emphasized that the recent crash in XRP’s price is not directly related to the court’s decision to grant the SEC’s request for an interlocutory appeal.
Nevertheless, XRP’s price has been significantly affected by the overall market downturn. The cryptocurrency experienced a decline of over 15% in response to the broader market conditions.
As Ripple’s case against the SEC progresses, it’s crucial to stay informed about the latest developments. The court’s decision to grant the SEC’s request for an interlocutory appeal does not guarantee the appeal’s success. The crypto market, including XRP, continues to experience volatility influenced by various factors. Stay tuned for further updates on this ongoing legal battle.
Note: This article is for informational purposes only and should not be considered as legal or financial advice.