Ripple vs. SEC is heating up, and you know what? XRP is not declining. Court drama only adds fuel to the crypto fire and proves that the network is worth fighting for.
In a recent post, crypto attorney Bill Morgan said marked his skepticism of the SEC’s approach to regulating XRP, joking that the agency could expand its interpretation of the Howey test to include political endorsements. The comment follows a discussion in which another user, @XRPcryptowolf, pointed out that Ripple co-founder Chris Larsen’s recent public support for a political candidate could impact XRP’s market performance.
Morgan’s comment suggests that the SEC’s interpretation of “the efforts of others,” part of the Howey test used to determine whether an asset qualifies as a security, could reach overly broad definitions. By hypothetically including political support or donations as factors that could influence an investor’s earnings expectations, Morgan hints at the SEC’s potential to take its regulatory authority to a new level.
His comments reflect ongoing concerns in the crypto community about how far the SEC could go in shaping the regulatory landscape for assets like XRP.
Important dates on Ripple’s calendar
Ripple faces important deadlines that will determine its future. By Nov. 4, the company must decide whether to file an amended order or waive compliance altogether, which could add new tension to the case. Looking further ahead, a pre-trial conference is scheduled for December 19, with jury selection and a trial on January 21, 2025. Meanwhile, the SEC has intensified its efforts to reinstate charges against Ripple’s top executives, with the final briefings scheduled for January 15. Ripple’s response to these demands will impact the XRP market and determine how it fares in the current regulatory scenario.
XRP market sentiment
XRP saw a slight decline of 1.02% on October 30, closing at $0.5224 and ending its four-day winning streak as it lagged the broader crypto market, which fell 0.50% to a market cap of $2.381 trillion . Market sentiment surrounding the upcoming US presidential election is adding to XRP’s volatility, with a potential Trump victory expected to push XRP above the key resistance at $0.55. Conversely, increased support for Kamala Harris in the last election could push XRP below the $0.50 mark.
What’s at stake for Ripple and XRP?
Furthermore, Ripple’s next steps are important, with any choice in this legal battle potentially impacting the future of XRP. An alternative solution could save XRP from prolonged legal stress and stabilize market sentiment, while a challenging approach could introduce additional volatility and uncertainty.
