XRP whale wallets skyrocket as holders wait and watch SEC’s appeal
- XRP wallets holding upwards of 100 million tokens has climbed to 199, the highest level recorded since May 13.
- The altcoin has emerged as a trending topic among market participants since Judge Torres’ ruling and the SEC’s intention to appeal.
- Pro-XRP attorney John Deaton assures the community of holders that an appeal is not a setback and the ruling is a win for the XRP army.
XRP holder community is in “wait and watch” mode as the SEC appeals Judge Torres’ ruling in its lawsuit against payment giant Ripple. Pro-XRP attorney, John Deaton assured XRP holder community members that it will be at least two years from now before a decision is issued by the second circuit, even if the SEC appeals the ruling.
XRP price is $0.7430 on Binance at the time of writing.
Also read: XRP price wipes out 12% gains after SEC said the regulator will appeal Judge Torres’ ruling
XRP whales accumulate the altcoin as SEC prepares for appeal
Based on data from crypto intelligence tracker Santiment, XRP whale wallets holding upwards of 100 million tokens, worth at least $74 million have climbed to 199. This is the largest count of XRP whale wallets with upwards of 100 million tokens since May 13.
XRP whale wallets holding 100 million+ tokens
The altcoin has been a trending topic throughout the month of July. There is a moderate correlation between XRP price and the fluctuations seen in on-chain metrics. The altcoin is exchanging hands at $0.7424 on Binance.
Pro-XRP lawyer assures community that SEC’s appeal won’t hurt XRP army
Attorney John Deaton, amicus in the SEC vs Ripple lawsuit and representative of 75,000 XRP holders recently commented on the regulator’s plan to appeal Judge Analisa Torres’ ruling. The Torres Decision, according to Deaton, is a law until the second circuit makes a decision and rules on the appeal.
An appeal is not even close to be a setback. First, it will be two years from now before a decision is issued by the 2nd Circuit, if it’s appealed. The Torres Decision is the law until then - at least in the 2nd Circuit. Second, even if the 2nd Circuit said Torres was wrong… https://t.co/GzW31D9edQ
— John E Deaton (@JohnEDeaton1) July 22, 2023
The attorney explains that the SEC does not satisfy the “common enterprise” factor in its arguments against Ripple. This is a difficult factor to meet, therefore Judge Torres’ ruling is a significant win for XRP, XRP holders and Ripple.
SEC vs Ripple lawsuit FAQs
Is XRP a security?
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.
How does the ruling affect Ripple in its legal battle against the SEC?
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.
What are the implications of the ruling for the overall crypto industry?
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.
Is the SEC stance toward crypto assets likely to change after the ruling?
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.
Can the court ruling be overturned?
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.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
