XRP climbs past $0.53, SEC Chair Gensler says the agency has done very well in court cases


  • Ripple lawsuit ruling is expected soon, following the new US crypto bill, FIT21. 
  • SEC Chair Gary Gensler says the agency has fared well in legal battles while speaking at the ICI 2024 Leadership Summit. 
  • XRP rallied past $0.53 on Friday, adding 3% in value this week. 

The ruling of the Ripple (XRP) lawsuit is pending, and holders await the court’s decision in the legal battle between the US Securities and Exchange Commission (SEC) and the payment remittance firm. Ripple’s Chief Executive Officer (CEO) Brad Garlinghouse and Chief Legal Officer (CLO) Stuart Alderoty have slammed SEC Chair Gary Gensler and his “regulation by enforcement” approach on more than one occasion. 

Speaking at a leadership conference, Chair Gensler commented on the SEC’s performance in court cases. 

XRP sustained its gains this week, rallying past $0.53 on Friday. The altcoin held on to a 5% increase in its value this week on Binance. 

Daily Digest Market Movers: Ripple ruling awaited amidst FIT21 bill, Chair Gensler’s comments

  • XRP holders await a court ruling in the SEC vs. Ripple lawsuit while agency Chair Gary Gensler comments on the agency’s performance in court cases. 
  • Chair Gensler spoke at the ICI 2024 Leadership Summit and said that the SEC has done very well in court on crypto cases.
  • The blanket statement likely does not apply to the agency’s case against the payment remittance firm Ripple. 
  • In the SEC vs. Ripple lawsuit, the regulator alleged that the firm sold unregistered securities (XRP) to its institutional clients at different prices/ discounts therefore the firm netted “ill-gotten gains,” and demanded a fine of $2 billion be imposed on the firm. 
  • Ripple responded with a $10 million fine request, and according to attorneys familiar with the case, the firm is prepared for an injunction (ban) on the sale of XRP to institutional clients in the US. 
  • The SEC has noted wins in its ongoing lawsuits against Coinbase and exacted settlements/ fines from crypto exchanges Binance and Kraken in the past. 
  • The court’s ruling in the SEC vs. Ripple lawsuit is anticipated, and it remains to be seen whether the regulator will secure a victory in its legal battle. 
  • Pro-crypto attorneys and analysts in the XRP community speculate the impact of the newly approved FIT21 bill by one house of Congress. 
  • Ripple CEO Brad Garlinghouse voiced his opinion on FIT21 in a recent tweet on X:

Technical analysis: XRP eyes over 7% gains as it extends rally

Ripple has been in an uptrend since April 13. The altcoin has formed higher highs and higher lows, as seen in the XRP/USDT 1-day chart. In its uptrend, the altcoin has preserved 3% gains from the week and surged past $0.53 on Friday. 

The Moving Average Convergence Divergence (MACD), a momentum indicator, shows there is underlying positive momentum in the XRP uptrend. The Relative Strength Index (RSI) reads 52.93, supporting the recovery in XRP price. 

If Ripple continues its uptrend, it could extend gains by over 7%, climbing to $0.5703, the high observed on May 6 and April 22. This level has acted as resistance for the altcoin since April 13. 

XRP

XRP/USDT 1-day chart 

On the downside, the XRP price could sweep liquidity at the May 23 low of $0.5027. This is a key level for the altcoin as it is close to $0.50, a psychologically important support for Ripple. 

SEC vs Ripple lawsuit FAQs

It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.

The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.

The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.

The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.

The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

XRP struggles below $0.50 as Ripple proponent attorneys slam SEC for Ethereum “free pass”

XRP struggles below $0.50 as Ripple proponent attorneys slam SEC for Ethereum “free pass”

XRP trades back below $0.50 on Wednesday as Ripple (XRP) proponents like attorney Bill Morgan have lashed out at the Securities and Exchange Commission (SEC) for what is being considered a “second free pass” for Ethereum. 

More Ripple News

Ethereum survives SEC scrutiny: Enforcement division closes investigation into Ether, Consensys says

Ethereum survives SEC scrutiny: Enforcement division closes investigation into Ether, Consensys says

Ethereum (ETH) received a free pass from the US Securities and Exchange Commission (SEC) as the regulator decided to drop its investigation into ETH for allegedly selling the token as a security. 

More Ethereum News

Polygon MATIC poised for 10% rally as momentum indicators signal strength

Polygon MATIC poised for 10% rally as momentum indicators signal strength

Polygon price formed a bullish divergence on a momentum indicator, signaling a reversal. On-chain data shows MATIC’s capitulation event occurred between June 12 and 18.

More Polygon News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin technical indicators signal bullish momentum

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin technical indicators signal bullish momentum

Bitcoin price action shows a bullish divergence on a momentum indicator, signaling a forthcoming bullish trend. Ethereum and Ripple are poised to mirror Bitcoin's trajectory, preparing to breach resistance levels and rally upwards in tandem.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP