XRP may lose non-security status if SEC appeals Ripple verdict
Former SEC lawyer: US SEC “will probably” appeal July 2023 case judgment against Ripple.
Pro-Ripple attorney John Deaton outlines why the SEC might lose any appeal and how it could affect XRP's security classification.
After falling more than 1%, XRP trades flat on Friday.
The US Securities & Exchange Commission (SEC) may appeal the Ripple case, sending Ripple (XRP) down slightly on Friday.
Despite the SEC vs. Ripple lawsuit's partial triumph for both sides, Fox Business writer Eleanor Terret claimed on X that the regulator may appeal, citing a veteran SEC lawyer. An appeal calls into doubt XRP's legality as a non-security in crypto exchange transactions, which might affect its price.
In July 2023, Judge Analisa Torres decided that cryptocurrency exchange transactions using XRP are not securities. On X, pro crypto attorney John Deaton stated that if the SEC appeals, it concerns the legal clarity of XRP as a non-security and demands the Judge to use the Howey Test again to decide whether it meets the security criterion.
Deaton calls the SEC appeal “a total waste of taxpayer money” since XRP fails to meet the Howey Test's “common enterprise” component, making it unlikely to modify the first verdict.
However, the ambiguity surrounding the process may affect XRP traders as they consider appeal decisions.
Technical analysis: XRP may sweep $0.5581 liquidity.
XRP has been trading sideways for days, staying above $0.5800 despite a multi-month downtrend.
In a slump, XRP might sweep liquidity around $0.5581, a September support level. If it breaks this level, the Fair Value Gap (FVG) between $0.5413 and $0.5556 provides support.
After sweeping liquidity in the imbalance zone, XRP might climb to $0.6200, the upper border of an FVG and significant barrier for the cryptocurrency.