Ripple’s native crypto, XRP price dropped by a massive 10% as the US Securities and Exchange Commission (SEC) announced that is taking the legal battle to the 2nd U.S. Circuit Court of Appeals. The commission is appealing a July 2023 ruling that declared XRP sold by Ripple Labs is not a “security”.
Brad Garlinghouse, Ripple CEO, isn’t holding back on the SEC’s appeal. He stated that if Gensler and the SEC were rational, they would have moved on from this case long ago. However, the latest twist in the intense legal battle has again brought the crypto community on its edge.
XRP slides 10% as tensions rise
XRP trading over the $0.6 price level, nose-dived below the $0.53 price level as the US SEC filed a Notice of Appeal of Judge Torres’s ruling in the Ripple case. The fresh plunge has managed to vanish the gains seen after Bitwise’s XRP ETP move.
Whale Alert data shows that 3 different whale wallets have moved around 60 million XRP (approx worth $33 million) cumulatively, to different crypto exchanges. The biggest transaction recorded by the on-chain tracker stands out to be a whale dumping its 22 million (approx worth $11.73 million) to the crypto exchange Bitso.
The over 10% price slump in the last 24 hours has dragged XRP to print the red index in the longer frame. XRP is trading at an average price of $0.54, at the press time. It is still up by 35% in the last 90 days while trading 12% lower on the year to date basis.
XRP’s non-security status is “Law of the Land”
Brad Garlinghouse expressed his frustration over the SEC’s decision to appeal and stated that XRP’s non-security status is “the law of the land today.” He claims that the commission hasn’t protected investors and instead has damaged the credibility and reputation of the authority.
He added that it seems like the SEC hasn’t gotten the message that they lost on everything that matters and the rule of law has already prevailed.
If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.
Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
Garlinghouse mentioned that they will fight in court for as long as they need and XRP’s non-security status will not change even in the face of this misguided and infuriating appeal.
Ripple’s legal chief in an X post called out the SEC’s decision to appeal as disappointing, but not surprising. He highlighted that the Court already rejected the commission’s suggestion that Ripple acted recklessly.
Stuart Alderoty added that instead of faithfully applying the law, the agency under Gary Gensler is continuing to engage in litigation warfare against the industry. He hinted that Ripple’s legal team is evaluating whether to file a cross-appeal. He believes that the SEC’s lawsuit has been irrational and misguided from the start, and they are ready to prove that yet again in the appellate court.
