The recent ruling by Judge Analisa Torres, which declared XRP a non-security in the Ripple case, has left many speculating about the SEC and Exchange Commission’s (SEC) next steps. Fox Business journalist Charles Gasparino tweeted today that the SEC has chosen not to comment on whether it plans to appeal the court’s ruling on the security status of XRP. This has fueled growing speculations surrounding the SEC’s potential appeal.
Not everyone believes the SEC will appeal the ruling. Jeremy Hogan, a prominent US-based lawyer, shared his belief that the SEC would not benefit from an appeal in the face of an unfavorable ruling. If the SEC were to appeal and lose the case, Judge Torres’s decision on the security status of XRP would become a binding precedent. This could hinder the SEC’s chances of winning. Hogan said:
“I’m 90% sure this is what they will do. When they lose, there won’t be an appeal because they don’t want to m*ss up their whole agenda here and enforce these regulations against the crypto space,”
It is important to note that the SEC has not indicated its intention to appeal the decision on the legality of XRP. However, the regulator has previously expressed satisfaction with the judge’s finding that Ripple violated the law through its XRP offering under certain circumstances. The SEC highlighted that the court agreed with its argument on multiple issues, particularly emphasizing the significance of the “Howey test” in determining the securities aspects of crypto transactions. For now, the SEC continues to review the ruling to decide on its next course of action.
XRP Legal Victory Creates Ripple Effect
The recent ruling in the SEC vs. Ripple case has significantly impacted the crypto market and beyond. As XRP experienced a price surge following the verdict, another notable effect was observed—Coinbase’s stock, COIN, also saw a surge. Ripple’s CTO, David Schwartz, expressed regret for not seizing the opportunity presented by the ruling.
Schwartz took to Twitter to express his hindsight regrets stating, “The first thing I should have done when I heard about the ruling was buy Coinbase stock.” His comment highlights the realization that the positive outcome of the SEC vs. Ripple case had a ripple effect on the market beyond the price of XRP. These recent events underscore the unexpected correlation between the legal victory and Coinbase’s stock price surge.
Judge Torres’ ruling, clarifying that XRP is not a security, instilled confidence among investors and traders. Following the judgment, COIN experienced a surge from $84.41 at 15:00 (UTC) to $109.41 at 23:30 (UTC) on July 13. This remarkable increase of 29.6% occurred within eight hours, reflecting the positive sentiment among market participants.
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