Ripple Labs continues to face legal pressure from the U.S. Securities and Exchange Commission (SEC). This ongoing battle has affected the performance of its native token, XRP. While other cryptocurrencies have seen notable gains, XRP has lagged behind.
The primary issue is the uncertainty over whether XRP should be classified as a security or a commodity. This legal uncertainty has caused investors to remain cautious, holding back the token’s growth compared to its peers.
Impact of Legal Ambiguity
However, legal issues have not stopped XRP from trading above a critical support level of $0.52. This support level however has been tried severally. Market analysts are closely observing, as if it goes below this level it could experience further slumps.
Ripple Files Cross-Appeal in SEC Lawsuit Over XRP Token Sale
On the other hand, a quite large rise may enhance the viewers’ sentiment of the marketplace. A spike in volatility expected next week could also impact the market’s view of XRP. The legal overhang has kept the asset from breaking past resistance levels, limiting its momentum in recent months.
Ripple CEO Criticizes SEC
It is important to note that Bitnomial’s lawsuit, filed on October 10 in Illinois, escalates the ongoing tension between Ripple and the SEC. The exchange received CFTC approval in 2020 to offer cryptocurrency futures. While the SEC deemed XRP as a security and XRP futures as security futures, it hindered Bitnomial’s way to offering XRP futures.
Bitnomial particularly presented its case before the SEC explaining why XRP should be considered as a commodity and not a security. In its argument, the exchange stated that XRP futures should fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC).
A new low for a renegade agency many thought couldn’t sink further.
The SEC now believes it can operate above the law, ignoring a Court’s ruling that XRP isn’t a security.
Team Ripple will be watching closely and weighing our own options to hold the SEC accountable. https://t.co/9yMWsNHRde
— Brad Garlinghouse (@bgarlinghouse) October 11, 2024
The SEC has been met with a lot of criticism especially from Ripple CEO Brad Garlinghouse. Garlinghouse criticized the SEC, calling it a “renegade agency” after Bitnomial’s filing. He stated Ripple is considering its own actions to hold the SEC accountable for ignoring the court’s ruling that XRP is not a security.
