Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit

Ripple lawsuit is awaiting final ruling, Mark Cuban hinted at Kamala Harris’ nomination influencing crypto regulation in the US.
The SEC alleges that the payment remittance firm has violated securities laws, Ripple CEO said in a recent interview that a resolution is close.
XRP extends gains by 5% on Wednesday, surges to $0.62.

Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.

The US Securities and Exchange Commission (SEC) lawsuit, recent events in the crypto market, including Spot Ether ETF approval by the SEC and Mark Cuban’s recent statements on the Presidential nomination are the key market movers influencing XRP on Wednesday.

Daily digest market movers: Ripple lawsuit could see changes in response to shift in crypto regulation

Mark Cuban, an American entrepreneur and crypto proponent, says he expects Kamala Harris’ nomination to the US presidency to impact crypto regulation, likely positively.
Changes in crypto regulation are expected to have an impact on the SEC lawsuit against Ripple, where the regulator alleges that the payment remittance firm violated securities laws.
In July 2023, Judge Analisa Torres ruled that XRP, the native token of XRP Ledger, is not a security in its secondary-market transactions. The decision was upheld and cited as precedent in SEC vs. Binance lawsuit, per judge Amy Berman Jackson’s ruling.
Cuban told Politico that the Harris campaign is interested in crypto, among other issues that are being discussed, and the Presidential candidate is considering speaking at the Nashville Bitcoin conference later this week.
SEC vs. Ripple lawsuit is awaiting a final outcome. There’s talk of a closed-door meeting between the two parties on July 25. Find out more about it here: Ripple stablecoin unlikely to invite legal trouble with SEC, XRP loses key support

Technical analysis: XRP breaks above $0.62 on Wednesday

Ripple is currently in an upward trend, forming higher highs and higher lows since July 8. XRP is likely to extend gains by 10.77% and hit its $0.70 target. The altcoin could find support at $0.5797 and $0.6058 (the 61.8% Fibonacci retracement of the decline from the March 11 top of $0.7440 to the July 5 low of $0.3823).

The momentum indicator, Moving Average Convergence Divergence (MACD), supports XRP gains. The green histogram bars correspond with underlying positive momentum in Ripple’s price trend.

XRP/USDT daily chart

A daily candlestick close under $0.6058 could invalidate the bullish thesis for XRP.

SEC vs Ripple lawsuit FAQs

Is XRP a security?

It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.

How does the ruling affect Ripple in its legal battle against the SEC?

The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.

What are the implications of the ruling for the overall crypto industry?

The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.

Is the SEC stance toward crypto assets likely to change after the ruling?

The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.

Can the court ruling be overturned?

The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.

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