Regulation
XRP Future Depends on SEC Ruling Against Coinbase Due to Volatility
- Analysts suggest that the evolution of Coinbase’s legal proceedings could influence the price of XRP in the future.
- Ripple Chief Legal Officer Stuart Alderoty recently criticized the SEC and its Chairman Gary Gensler for their regulatory approach, citing concerns about excessive regulations that are stifling the digital asset industry..
As the crypto community eagerly awaits the final settlement and resolution of the SEC vs Ripple case, the focus has recently shifted to the SEC vs Coinbase battle. Market analysts believe that the price action of XRP could reflect the progress of the legal battle between the SEC and Coinbase.
The SEC and Coinbase are currently awaiting the court’s decision on Coinbase’s motion for interlocutory appeal, filed in April 2024. This motion seeks leave to appeal the decision on Coinbase’s motion to dismiss (MTD).
Cryptocurrency exchange Coinbase had first filed the MTD in August 2023, while claiming that the SEC did not have the statutory authority to regulate cryptocurrency exchanges because recently updated by Crypto News Flash. However, Judge Katherine Failla denied the MTD, stating:
The Court concludes that, to the extent the Complaint’s well-founded allegations plausibly support the SEC’s claim that Coinbase operated as an unregistered securities intermediary, Defendants’ motion should be dismissed in substantial part.
If Judge Failla grants Coinbase’s motion for interlocutory appeal, the SEC v. Coinbase case will be stayed until the appeals process is complete. The successful dismissal of the motion to dismiss could have positive implications for XRP and the broader cryptocurrency market.
Ripple and Coinbase refer to Binance’s decision
A week ago, Judge Amy Berman Jackson governed in favor of Binance, stating that secondary market sales of the BNB currency do not constitute securities. In addition, the judge also ruled in favor of Binance regarding secondary market sales of the BUSD stablecoin.
Ripple and Coinbase both said there is currently no linearity when it comes to the application of uniform crypto regulations and that judgments largely depend on the judge and court making the decision, according to the CNF. update.
The lack of regulatory clarity prior to this decision in turn supports Ripple’s position that the Court’s finding of a strict liability violation on some of Ripple’s sales — but far fewer than what the SEC alleged were violations — does not reflect a reckless disregard for the law and does not warrant severe action, Ripple noted.
Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), recently expressed concerns about the U.S. approach to cryptocurrency regulation in a round table Alderoty made a statement at the Point Zero Forum in Zurich, Switzerland. He criticized the U.S. Securities and Exchange Commission (SEC) and its Chairman Gary Gensler, accusing them of imposing overly strict regulations. Alderoty highlighted the significant frustration within the bitcoin industry over the SEC’s actions.
According to Alderoty, the lack of consistency and clarity in the U.S. regulatory environment is hampering the growth and general acceptance of digital assets.
Price action
The current price action of XRP is largely in line with the general market developments, especially regarding the repayment of Mt. Gox creditors and the German government selloff. At press time, XRP is trading up 3.11% at $0.4343 with a market cap of $24.3 billion. If the price of XRP breaks above $0.50, it could pave the way for a further rally to $0.95. reported CNF.
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