XRP price rally to $0.60 likely with recovery fueled by developments in SEC vs Ripple lawsuit
|- XRP price recovered over the weekend with no new filings from the regulator or Ripple in the SEC vs Ripple lawsuit.
- SEC addressed XRP as a “digital asset security” in its first lawsuit but is now taking a different approach.
- The financial regulator argues digital assets have no inherent value and are nothing but computer code.
The ongoing SEC vs Ripple saga had no new updates over the weekend, and the XRP community of holders watched and waited as experts analyzed where the financial regulator is headed next. The Securities & Exchange Commission (SEC) said in its recent motion for interlocutory appeal that digital assets do not have an inherent value and are nothing more than computer code.
The statement made by the financial regulator is in stark contrast to the beginning of the lawsuit where the SEC referred to XRP as a “digital asset security.”
The shift in the SEC’s stance has fueled hope, of Judge Torres’ ruling on XRP being a “non-security” remaining intact. The regulator appears focused on the programmatic sales of the altcoin by payment giant Ripple.
Also read: SEC vs Ripple, the legal battle intensifies as XRP holders expect new changes from SEC appeal
SEC appeal likely focused on programmatic sales of XRP, not its security status
Experts in the crypto and XRP community utilized the weekend to analyze the news of SEC’s motion for interlocutory appeal being accepted by the court. As both parties prepare to file new motions and responses by the scheduled deadlines, experts note the shift in the regulator’s stance.
The SEC had initially maintained that XRP, the native token of XRPLedger, is a “digital asset security,” in its lawsuit against Ripple. The regulator states that digital assets have no inherent value and are nothing more than computer code in its latest filing.
In its filing, the SEC reveals that the regulator did not argue that the asset underlying the investment contract was necessarily a security and it does not seek an appellate review of any holding relevant to the same in its case against Ripple.
SEC motion for filing of interlocutory appeal
The interpretation of the SEC’s stance by Fox Business reporter Eleanor Terrett and pro-XRP attorney John Deaton ushers relief in the community of XRP holders.
With no new filings from the SEC or Ripple over the weekend, XRP price recovered from its decline and climbed past resistance at $0.55. At the time of writing, the altcoin is trading at $0.5291 on Binance. XRP price has rallied 25% from last week’s low of $0.4228 (Aug 17) to by early Monday.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
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