- Analysts suggest that developments in Coinbase’s legal proceedings could influence XRP’s price movement going ahead.
- Ripple’s Chief Legal Officer, Stuart Alderoty, recently criticized the SEC and Chair Gary Gensler for their regulatory approach, citing concerns over excessive regulations stifling the digital asset sector.
While the crypto community has been eagerly awaiting the final settlement and resolution in the SEC vs Ripple case, the focus has recently shifted to the SEC vs. Coinbase battle. Market analysts believe that the XRP price movement could reflect the developments in the SEC and Coinbase legal battle going ahead.
The SEC and Coinbase and currently awaiting a court’s ruling on the Coinbase Motion for the Interlocutory Appeal, filed in April 2024. This motion seeks permission to appeal against the ruling on Coinbase’s Motion to Dismiss (MTD).
Crypto exchange Coinbase had first submitted the MTD in August 2023, while asserting that the SEC doesn’t possess the statutory authority to regulate the crypto exchanges, as recently updated by Crypto Key News. However, Judge Katherine Failla has denied the MTD stating:
The court concludes that because the well-placed allegations of the Complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered intermediary of securities, Defendants’ motion must be denied in large part.
If Judge Failla grants Coinbase’s Motion for Interlocutory Appeal, the SEC vs. Coinbase case will be put on hold until the appeal process is complete. Successfully overturning the Motion to Dismiss could have positive implications for XRP and the broader cryptocurrency market.
Ripple and Coinbase Refer to Binance Ruling
A week ago, Judge Amy Berman Jackson ruled in favor of Binance stating that the secondary market sales of BNB coin do not constitute securities. Besides, the Judge also ruled in favor of Binance over the secondary market sales of the BUSD stablecoin.
Both Ripple and Coinbase stated that there’s no linearity currently when it comes to applying uniform crypto regulations and the judgments largely depend on the Judge and the court giving the ruling, per the CNF update.
The lack of regulatory clarity prior to that ruling in turn supports Ripple’s 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 a reckless disregard for the law or warrant harsh remedies. Ripple noted.
Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), recently voiced concerns about the U.S. approach to crypto regulation in a panel discussion at Zurich, Switzerland’s Point Zero Forum. He specifically criticized the U.S. Securities and Exchange Commission (SEC) and Chair Gary Gensler, accusing them of imposing overly stringent regulations. Alderoty highlighted the significant frustration within the Bitcoin sector caused by the SEC’s actions.
According to Alderoty, the lack of consistency and clarity in the U.S. regulatory environment is hindering the growth and mainstream acceptance of digital assets.
Price Action
The current XRP price action is largely in tune with the broader market development, especially pertaining to the Mt. Gox creditor repayment and the massive sell-off coming from the German government. As of press time, XRP is trading 3.11% up at $0.4343 with a market cap of $24.3 billion. If the XRP price gives a breakout above $0.50, it can set the stage for a further rally to $0.95, reported CNF.
