XRP Lawsuit Update: Is the SEC Planning to Appeal in Ripple vs SEC Case After the Rate Cut?

The post XRP Lawsuit Update: Is the SEC Planning to Appeal in Ripple vs SEC Case After the Rate Cut? appeared first on Coinpedia Fintech News

The buzz is electric as the SEC’s potential appeal of Ripple’s landmark victory hangs in the balance! Weeks after Ripple Labs triumphed over the SEC, crypto analyst Mr. Huber suggests the SEC might hold off on an appeal until the September rate cut. Meanwhile, Bill Morgan isn’t too sure, giving only a 60% chance that the SEC won’t appeal. With these mixed signals, the crypto market braces for what could be another intense legal showdown!

Bill Morgan Says No Appeal

Since Judge Analisa Torres issued her final judgment in the SEC vs. Ripple case on August 7, the SEC has been silent on whether it will appeal. Legal expert Bill Morgan has weighed in, suggesting that if the SEC is guided solely by legal considerations, it might not appeal.

He noted that recent judicial trends, such as Judge Orrick’s preference in the Kraken case for differentiating between primary and secondary market transactions—similar to Judges Jackson and Torres—could influence the SEC’s decision. Morgan’s comments reflect growing uncertainty about the SEC’s next move. 

Huber Disagrees

It's simple: the SEC waits until the rate cut to file the appeal. Just like they waited until Christmas bull run to file the lawsuit. US Investor protection. https://t.co/0C1MWrvAyW

— Mr. Huber (@Leerzeit) August 28, 2024

Adding to the speculation, known crypto analyst, Mr. Huber suggested that the SEC might delay its appeal until a rate cut, much like its previous timing of filing lawsuits to coincide with market conditions, such as the Christmas bull run. Huber’s X post highlighted a pattern where the SEC’s actions seem timed with significant financial events. Like previously they waited till Christmas to file a case against Ripple, this might be the case to drop the XRP price. Many analysts expect a boost in XRP prices post the Fed’s September rate cut.  

What to Expect If SEC Appeal? 

Former SEC member James Farrell noted that if Ripple wins an appeal, the SEC could face financial risks, including bond costs and possible interest. Ripple’s cross-appeal might also challenge the SEC’s position on XRP sales, potentially reshaping crypto regulation. The SEC will discuss the case on August 29, and an appeal could extend it into 2025. The 60-day appeal window closes in early October, which may be affected by potential changes in US administration.

XRP Price Impact

Despite the negativity, XRP’s weekly chart shows bullish signs, with the price holding above the 50-day and 200-day EMAs. A breakout above the 50-day EMA could drive XRP towards $0.60 and potentially higher to $0.6434 or $0.6609. However, a drop below these moving averages might signal a trend reversal, pushing XRP below $0.50. With the 14-day RSI at 46.54, XRP could dip to $0.50 before hitting oversold conditions. 

In the meantime, if the SEC does not challenge the case rulings, XRP could aim for a return to $1.00. Are you bullish or bearish on XRP?