SEC vs. Ripple puts XRP-Spot ETF on thin ice
XRP-Spot ETF is one of the most anticipated products in the crypto sphere. The approval of the Bitcoin ETF has triggered this. While there is a lot of uncertainty about the same becoming a reality, the community is optimistic that Ether ETF and XRP ETF will soon make their way into the market. There are challenges that need to be resolved, though. For instance, the SEC and Ripple still argue in court about Programmatic Sales.
Only in the summer could there be some hint about where the dispute will head. Current discussions revolve around remedy-related discoveries. This will tentatively go on until February 12, 2024, followed by remedy-related briefs. Both sides will argue if a penalty for XRP sales to institutional investors in the US holds any validity.
Judge Analisa Torres has handed Ripple a partial win, concluding that XRP is not a security in programmatic sales. Another portion makes it evident why the case continues to happen. Judge Torres has further said that Ripple has breached Section 5 of the 1933 Securities Act.
That part of the judgment comes in light of the failure to register XRP as a security before offering it for institutional sales. Gary Gensler, the SEC Chair, is determined to stand true to their grounds and give up an inch of it. The community knows that it is only after the SEC acknowledges that XRP is not a security that the XRP ETF product will see the end of the tunnel.
The SEC’s appeal will likely extend to 2025, creating a time window during which other cryptos may gain momentum. The Commission gains strength from the verdict that Judge Jed Rakoff delivered in the case of Luna and TerraUSD. Judge Jed ruled that both products are securities.
As for XRP losing momentum in the sphere, the token is currently a part of the ongoing freefall. The token was last seen exchanging hands at $0.5151, dropping 1.77% in the last 24 hours. It further reflects a decline of 9.74% in the last 7 days and 16.45% in the last 30 days. Also, its market cap has come down by 1.77%.
Estimated predictions state that when XRP returns to $0.52, it will move closer to the resistance level of $0.5470 to bring the 200-day EMA back into perspective. Its 24-hour volume remains top-notch, with a jump of 27.45% when drafting this article.
The Bitcoin ETF has had little impact on the price of BTC, as the token is trading below $40,000. There are discussions about the ETH ETF soon entering the market; however, confirmation from the likes of BlackRock and Fidelity is awaited. XRP ETF could only happen when the SEC versus Ripple case settles.
