The article explores the potential impact of Coinbase’s legal victory against the SEC on XRP’s ongoing battle with the regulatory body.
With implications for the broader crypto market, a favorable outcome for Coinbase may disrupt the SEC’s plans to appeal the XRP ruling, influencing the regulatory landscape and shaping the future trajectory of Ripple’s XRP.
Cryptocurrency enthusiasts are closely monitoring recent developments that could significantly impact the fate of XRP, as Coinbase’s legal victory may hold the key to ending the SEC’s plans to appeal the XRP ruling.
BTC-Spot ETF-Related Updates Fuel XRP Demand
On Monday, XRP experienced a 2.10% gain, closing the session at $0.5351. The surge was attributed to updates in the BTC-spot ETF market, driving buyer demand for cryptocurrencies. Grayscale Bitcoin Trust (BTC) outflows contributed to the positive momentum in the broader crypto market.
SEC v Ripple: Awaiting Key Rulings
Despite these gains, XRP remained below the $0.60 handle, with all eyes on the ongoing SEC case against Ripple. Investors eagerly await the court ruling on the SEC Motion to Compel, filed on January 11, requesting crucial financial statements and post-complaint contracts related to XRP sales. The February 12 deadline looms large for Ripple and the SEC as they navigate the remedies-related discovery process.
SEC v Coinbase: Pivotal Moment for Crypto Regulation
The outcome of the SEC’s case against Coinbase may have broader implications for the entire cryptocurrency market. Coinbase filed a Motion to Dismiss in August, challenging the SEC’s authority to regulate crypto exchanges. If Judge Katherine Failla grants the motion, it could force the SEC to reconsider its approach to regulating the crypto industry.
“In 2021, Gary Gensler testified that exchanges like Coinbase fell outside the SEC’s jurisdiction. However, in a surprising turn of events, the SEC later charged Coinbase for allegedly operating as an unregistered securities exchange and conducting an unregistered offering of securities.”
The decision in the SEC v Coinbase case could set the tone for the SEC v Ripple case. A favorable ruling for Coinbase might lead to a halt in the SEC’s plans to appeal the XRP ruling regarding programmatic sales. In July 2023, Judge Torres ruled that such sales did not meet the third prong of the Howey Test, providing a potential lifeline for Ripple and XRP.
XRP Technical Analysis: What Lies Ahead
XRP continues to face challenges, staying below the 50-day and 200-day EMAs, indicating bearish signals. Investors are closely monitoring the $0.5470 resistance level, a breakthrough of which could provide an opportunity for the bulls. On the other hand, a fall below the 50-day EMA may trigger a decline towards the $0.5042 support level.
A Ripple Effect on the Crypto Landscape
As the crypto community awaits critical rulings in the SEC v Ripple and SEC v Coinbase cases, the fate of XRP hangs in the balance. A Coinbase victory might not only reshape the regulatory landscape but could also mark a turning point in the ongoing battle between Ripple and the SEC, potentially influencing the future trajectory of XRP. Investors brace for a rollercoaster ride in the crypto market as these legal battles unfold.
The post Coinbase’s Legal Chess: The Unforeseen Impact on XRP’s Journey appeared first on Crypto News Focus.