The legal showdown between the U.S. Securities and Exchange Commission (SEC) and Ripple has intensified once more, causing a significant drop in XRP‘s value. Ripple’s chief legal officer, Stuart Alderoty, criticized the SEC’s recent appeal as an extension of their ongoing battle through litigation. Ripple is now considering a cross-appeal, with CEO Brad Garlinghouse emphasizing their commitment to seeing the case through, no matter how long it takes.
SEC’s Appeal Shakes Ripple Ecosystem
On October 2, 2024, the SEC filed an appeal challenging the court’s decision that Ripple’s sales on exchanges did not violate securities laws. Following the announcement, XRP‘s price plummeted by 11%, losing its critical support level of $0.60. The SEC argues that the court’s decision contradicts years of Supreme Court precedents, alleging that Ripple violated federal securities laws. However, within the Ripple community, this appeal was expected.
Ripple’s legal team plans to file a cross-appeal, and Alderoty has labeled the SEC’s actions as “shameful,” accusing the regulator of misleading and illogical tactics. He pointed out that the SEC failed to produce any evidence of Ripple defrauding investors or causing financial harm.
XRP Price and Market Movements
The ongoing legal battle continues to cause fluctuations in XRP’s price. Before the SEC’s appeal, optimism surrounding an XRP ETF application by Bitwise had fueled a rally, with transaction volumes reaching a record $2.39 billion. Yet, the appeal triggered a 21% drop in XRP’s price, shaking investor confidence.
Despite the volatility, large investors, known as whales, continue to buy the dip. In early October, 145 whale transactions exceeding $1 million were recorded, signaling strategic accumulation amid the market downturn.
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