The ongoing Ripple vs SEC case has significantly weighed down on XRP’s bullish sentiment in the past four years.
New York court ruled on Thursday, October 31, to extend the deadline for the United States Securities and Exchange Commission (SEC) to file the briefs for its appeal on the recent Judge Analisa Torres on XRP case by January 15, 2025. According to the court documents shared by defense lawyer James Filan through the X platform, the US SEC must file the brief by January 15 to avoid the appeal motion getting dismissed.
On October 24, the US SEC filed a request with the Court of Appeals for the Second Circuit to extend the deadline for its principle brief to January 15, 2025.
The move to extend the deadline for the brief follows the recent resignation of the SEC’s enforcement director Gurbir Grewal, who was replaced by the agency’s deputy director of enforcement, Sanjay Wadhwa. The extended timeline will offer the US SEC’s team a much-needed space to bring forth a better argument in the XRP case.
Moreover, Judge Torres ruled that XRP XRP $2.04 24h volatility: 0.7% Market cap: $119.13 B Vol. 24h: $4.56 B sales on centralized exchanges do not constitute investment contracts. However, the XRP sales to institutional investors were deemed to have violated the securities laws under the Howey test and thus classified as securities.
Meanwhile, Ripple filed its civil appeal pre-argument statement (Form C) on October 25, requesting the Court to consider the lack of merits for the SEC’s case.
Ripple vs SEC Case at a Crucial Moment
The recent appeal by the US SEC on the XRP case did not resonate well with the global crypto community. Moreover, experts believe that the success of Ripple in the ongoing case will heavily impact the entire cryptocurrency market adoption in the United States.
With the US 2024 elections concluding in the next few days, the crypto community, more so the XRP holders, are hoping for the win of Republican presidential candidate Donald Trump.
Moreover, Trump has promised to create regulations that foster the development and growth of the Web3 industry in the United States, by firing the current SEC chair Gary Gensler.
The extension of the Ripple vs SEC case has undeniably weighed heavily on the XRP’s bullish sentiment. Notably, XRP price underperformed in the 2021 crypto bull run due to the uncertainties of the Ripple vs SEC case. The large-cap altcoin, with a fully diluted valuation of about $51 billion and a daily average traded volume of around $1.4 billion, has suffered immense competition from emerging crypto projects.
Although XRP price has established a solid support level above 50 cents in the recent past, the headwinds from the legal battles are likely to weigh heavily on altcoin’s bullish sentiment. Moreover, the highly anticipated altseason is expected to kick off in the coming months and potentially peak in the first half of 2025, based on historical data trends.
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