- Ripple’s XRP maintains a bullish trend, reaching $3.34, despite the SEC’s appeal challenging retail sales under the Howey Test.
- Legal experts criticize the SEC’s appeal as repetitive, while pro-crypto leadership may reshape regulatory actions post-Gensler.
- XRP’s $25B trading volume and $187.485B market cap push it to 3rd place, reflecting investor confidence amid ongoing legal battles.
The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) continued after January 15, 2025 appeal. The SEC formally filed an appeal with the Second Circuit Court, seeking to overturn Judge Analisa Torres’ ruling from July 2023.
The ruling had previously determined that Ripple sale of XRP to investors did not constitute an unregistered securities offering. The SEC’s appeal is on the claim that Ripple’s promotional activities boosted profit expectations among investors, classifying XRP sales as investment contracts under the Howey Test.
XRP’s Resilient Market Performance
Despite the ongoing legal challenges, XRP’s market performance has been resilient. Following the appeal, XRP maintained a strong bullish trend, trading at $3.34 on January 17, 2025 at press time.
Its 24 hour trading volume surged to nearly $25B, and its total market capitalization up to $187.485 billion. This surge places XRP to third place among digital assets, surpassing USDT.
The appeal’s focus on the Programmatic Sales of XRP has had major market interest. The SEC argued that retail investors reasonably expected profits from Ripple’s public representations aimed at boosting XRP’s price.
Stuart Alderoty, CLO at Ripple, criticized the appeal, describing it as a rehash of failed arguments and expressing confidence in Ripple’s legal stance.
SEC’s Appeal Criticism from Legal Experts
The SEC’s appeal has seen criticism from legal experts and the crypto community. Pro crypto lawyer Jeremy Hogan described the SEC’s opening brief as “lackluster,” showing its repetition in reiterating the trial court’s rulings.
Similarly, attorney John E. Deaton highlighted the difficulties of the case, noting that if the SEC succeeds in the Second Circuit, the case could return to Judge Torres for further examination of additional Howey Test prongs.
Eleanor Terrett, reporter at Fox Business, commented on the potential for the SEC to dismiss or pause certain non fraud crypto cases following the departure of SEC Chair Gary Gensler on January 20. The potential change in SEC leadership could influence the direction of ongoing cases, including Ripple’s.
Potential Bullish Developments
The upcoming inauguration of the U.S. President elect Donald Trump and the departure of Gary Gensler are seen as pivotal. With the possibility of pro crypto leadership taking charge, the regulatory sector for digital assets may shift.
Reports suggest that acting SEC leadership might review and potentially stay ongoing non fraud cases. According to Terrett, either Mark Uyeda or Hester Peirce, would likely become the acting chair. This has led to optimism among investors, reflecting in XRP’s price action.
XRP’s performance continues to show market confidence despite renewed legal pressures. The SEC’s appeal, focusing on retail sales and promotional activities, remains a critical factor. However, the potential changes in SEC leadership could significantly influence the case’s outcome and XRP’s future market position.