Outside Source
TL;DR
- Ripple-SEC lawsuit continues, with the next key filing due by January 2025.
- Bitcoin’s price recently surged to nearly $73,600 before dropping to around $67,400, potentially influenced by political factors.
- Ethereum plunged from $2,700 to $2,400, with analysts watching key support levels.
The Prolonged Lawsuit
The legal battle between Ripple and the US Securities and Exchange Commission (SEC) remains ongoing approximately four years after its start. It all began in 2020 when the agency accused the company of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP.
Last year, the case reached a pivotal moment after Federal Judge Analisa Torres ruled that the firm’s XRP sales to retail investors on crypto exchanges did not violate US securities laws. The regulator officially appealed the decision a month ago, triggering a fresh doze of uncertainty. The action means that the lawsuit entered a new phase comprised of filings and a briefing process, with its final resolution most likely delayed for another few years.
It is worth mentioning that Ripple responded to the SEC with a cross-appeal, outlining some fundamental points for the magistrates to consider. The first question is whether an “investment contract” under the 1933 Securities Act requires a formal agreement, post-sale duties, and buyer profit rights. This could potentially redefine the interpretation of digital asset transactions.
The second point disputes the lower court’s ruling that the company’s XRP transfers meet the SEC v. W.J. Howey Co. case criteria, which established the Howey Test to determine what qualifies as an investment contract. Ripple claims that its transactions did not resemble an investment of money in a common enterprise, with profits dependent entirely on the firm’s efforts.
Third, the company focused on “fair notice” (a term referring to the legal principle that a person or entity must be given clear and adequate details about the laws or regulations that apply to their actions). It insists that it provided potential XRP buyers with sufficient information about the uncertainty related to cryptocurrencies.
Lastly, Ripple questioned the clarity of the injunction from Judge Torres (who ordered the company to pay a $125 million fine for violating certain securities laws), claiming it only instructs the company to follow the law without enough specifications.
Most recently, James K. Filan (a US attorney who closely observes the legal tussle) said the Second Circuit Court of Appeals has ordered that the Commission’s brief must be filed on or before January 15, 2025. Failure to act by the deadline may result in dismissal of the appeal.
How’s BTC Doing?
The primary digital asset has been one of the hottest topics in the crypto space due to its rapid price swings in the past week. Its valuation soared from $68,000 (per CoinGecko’s data) on October 28 to $73,600 (almost a new all-time high) 24 hours later.
It consolidated at around $72K in the next two days, plunging sharply toward the end of the month. The bulls attempted to push the price on November 1, but the rally was short-lived, and BTC kept losing ground. It dropped under $68,000 on November 3, currently worth approximately $68,500.
One factor potentially contributing to the asset’s poor performance recently is Donald Trump’s declining odds of winning the US presidential elections. Last week, the Republican had a massive lead on Polymarket: 66.9% versus 33.1% for his opponent, Kamala Harris. The picture looks much different now, with Trump’s figure standing at 57.5%, while the Democratic candidate follows with 42.6%.
According to many industry participants, the former president is the better choice for the digital asset market, considering his pro-crypto stance indicated throughout his campaign. Recall that Trump promised to make America a leader in bitcoin mining and hinted at establishing a strategic BTC reserve.
We have yet to see whether the Republican can enter the White House as a winner again and if he will stand by his commitment.
What About ETH?
The second-largest cryptocurrency spiked above $2,700 on October 30. Like BTC, though, it headed south and is currently hovering at around $2,460.
According to some analysts, ETH remains on a bullish path as long as it trades above certain resistance zones. The X user Ali Martinez believes it can skyrocket to a new ATH of $6,000 if it doesn’t plunge below $2,400. ETH dropped to as low as $2,417 on November 3, still holding the depicted level.
Poseidon, on the other hand, promised to cash out their holdings if Ethereum’s price tumbled below $2,450.
This article first appeared at CryptoPotato
