The U.S. Securities and Exchange Commission (SEC) appeals against the judge’s ruling in the Ripple Labs case. The notice of appeal was filed on Wednesday, challenging Judge Analisa Torres’s ruling in the case.
In August, the SEC requested a fine of around $2 billion, which the judge reduced to $125 million. Even though the notice of appeal has been filed, the appeal itself has yet to be submitted.
The deadline for filing an appeal was October 7. There were speculations the SEC would challenge the court’s decision as we are nearing the deadline.
The SEC has already approved Bitcoin and spot Ethereum ETFs. However, its stance on other cryptocurrencies is still unclear.
Brad Garlinghouse, Ripple CEO, was furious with the SEC’s decision, stating that ‘they lost on everything that matters. Ripple, the crypto industry, and the rule of law have already prevailed.’
The notice of appeal came after Bitwise applied for a spot XRP ETF, which initially sent the cryptocurrency higher. The news that the SEC is challenging the court ruling triggered heavy selling.
Geopolitical tension in the Middle East accelerated XRP sell-off and impacted the top cryptocurrencies.
Can XRP recover following the SEC’s appeal?
XRP is already listed in the top cryptocurrency exchanges. It is not a token that is attempting to penetrate the crypto market.
Ripple has received in-principle approval from the Dubai Financial Services Authority (DFSA). It is a major step forward as it enables cross-border payments in the UAE, including Ripple Payments Direct (RPD).
XRP is the first blockchain-based payment services provider to obtain a license from the DFSA.
Ripple is also planning to launch its own stablecoin, Ripple USD, or RLUSD for short. The stablecoin is in beta testing and is expected to launch by the end of the year. RLUSD will initially be offered to institutional investors.
Ripple has already collaborated with many banks. Bank of America was recently added as a partner in the official website.
The above may suggest that the current dip in the XRP price may be short-lived if high demand is seen for RLUSD.
XRPUSD may have found support based on the 4hr chart, which may signal the intraday downtrend is losing momentum, paving the way for potential corrective gains.
A break above 0.5290 (above the current 4hr high session) may indicate the support is holding.