San Francisco, CA – XRP, a popular cryptocurrency, experienced a decline of 2.69% on Saturday, putting an end to its three-day winning streak. The digital currency closed the session at $0.5497, after a slight gain of 0.44% the previous day. Despite this setback, there were no updates related to the ongoing SEC v Ripple case that had a major impact on the appetite for XRP among buyers. The case, which has garnered significant interest, has reached a critical juncture, with the discovery phase of the remedies-related proceedings set to end on Monday.
In these proceedings, the SEC will seek a punitive penalty to deter future breaches of US Securities Laws. In a significant development, Judge Sarah Netburn granted the SEC Motion to Compel on February 5, allowing the regulatory agency to consider post-complaint conduct when determining the necessity and justness of an injunction. This ruling also means that the proceeds from XRP sales to institutional investors following the filing of the complaint could influence the remedy sought by the SEC.
However, Ripple, the company behind XRP, is expected to challenge the SEC’s jurisdiction over XRP sales to US institutional investors. Citing the precedent set in the case of Morrison v NAB, where the US Supreme Court ruled that the SEC only has jurisdiction over US-based sales, Ripple plans to present evidence of total proceeds from XRP sales to institutional investors both within and outside the United States. Additionally, Ripple may argue for an exemption to Section 5 of the Securities Act if it can demonstrate that XRP sales were made exclusively to accredited investors.
The deadline for filing the remedy-related briefs has been set, with the SEC required to submit its brief by March 13 and Ripple by April 12. Furthermore, the SEC is allowed to file a reply brief by April 19 to strengthen its arguments against Ripple’s proposed remedies.
The outcome of the SEC v Ripple case has significant implications for the future of XRP and the broader cryptocurrency market. Investors are closely watching for any developments, particularly regarding the SEC’s plans to appeal the ruling on Programmatic Sales of XRP.
In terms of price action, XRP has shown bearish signals on both the daily and 4-hourly charts. The cryptocurrency fell below the 50-day and 200-day Exponential Moving Averages (EMAs) on Saturday, indicating downward momentum. However, a break above the 50-day EMA could signal a move towards the 200-day EMA and potentially challenge the resistance level at $0.5835. Conversely, a drop below the support level at $0.5470 could lead to a further decline towards $0.5042.
Overall, the SEC v Ripple case and the subsequent remedy proceedings will continue to be a focal point for investors and industry observers. The outcome will have far-reaching implications for the regulatory landscape surrounding cryptocurrencies like XRP.