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- The verdict of the SEC vs Ripple case is expected to be made on July 31 or July 13, with a favourable decision expected to lead to a bullish reversal for the XRP price.
- XRP is down by 12% in the last 24 hours, trading at $0.400 at press time.
XRP crashed to $0.400 after extending its downward trend by 12% in the last 24 hours. Interestingly, this bearish extension cut across the broad market, as Bitcoin (BTC) declined by 7% to trade at $54k, with Ethereum (ETH) also down by 10% and trading at $2.859 at press time.
According to our data, the significant fall in the XRP price started on Wednesday (July 3), when the asset slid by 3.7% to close the trading session at $0.4329. Fascinatingly, this appeared to be the first time XRP ended the day below the $0.45 support level since May.
The entire crypto market cap fell by 5.84% at that time to reach $2,043 trillion, the largest single-day loss since April 13. On Thursday (June 4), XRP tumbled again by 7.32%, then further declined on Friday. The total crypto market cap has recorded its largest single-day drop in months, declining by 24% to $1.98 trillion.
With the ongoing market drop-down, XRP investors believe that a favorable ruling in the Ripple vs. SEC case could be the only lifeline to bring the price back to a bullish level.
Update on the SEC vs Ripple Case and Impact on the XRP Price
Defense Attorney James Filan recently disclosed that Ripple has filed a Notice of Supplemental Authority regarding the recent ruling on the Binance case.
An excerpt of the filing reads:
Intangible digital assets do not fit neatly into the rubric outlined in the mere seven pages that comprise the Howey opinion. Also, the agency’s decision to oversee this billion-dollar industry through litigation – case by case, coin by coin, court after court – is probably not an efficient way to proceed, and it risks inconsistent results that may leave relevant parties and their potential customers without clear guidance.
For context, Judge Amy Berman Jackman recently rejected the allegations of the US Securities and Exchange Commission (SEC) that the secondary market transactions of Binance’s BNB token meet securities requirements under the Howey Test. The court’s decision was based on the July 2023 ruling by Judge Analisa Torres on the Programmatic sales of XRP.
The court is inclined to agree with the approach of the court in Ripple Labs since the ‘it-is-what-it-is’ approach of the SEC appears to be inconsistent with the clear Supreme Court directives.
According to legal experts, the court’s ruling on this case could demoralize the Commission from appealing the Programmatic Sales of XRP ruling. Taking advantage of this, Ripple stated in its Notice of Supplemental Authority that the lack of clarity before that ruling supports its position that the “Court’s finding of a strict liability violation on some of Ripple’s sales – but far fewer than the SEC alleged were violations – does not reflect reckless disregard for the law or warrant harsh remedies.”
Currently, the SEC is seeking $2 billion in disgorgement; however, Ripple is only proposing $10 million. The potential verdict dates could be July 31 or July 13, coinciding with Judge Analisa Torres’s historic ruling date. To analysts, a favorable settlement could send the XRP price as high as $1.
