- Ripple attorneys are preparing to challenge the SEC’s interlocutory appeal.
- SEC’s court filings indicate Ripple (XRP) was created as an asset with no intrinsic value.
- Pro-XRP lawyers have questioned the appeal’s court filings for referring to XRP as an asset with no intrinsic value.
Ripple lawyers have revealed they are already preparing to battle the U.S. Securities and Exchange Commission’s (SEC) Interlocutory appeal against Judge Analisa Torres’s ruling that the XRP token isn’t a security.
Pro-XRP attorney John Deaton advised the SEC to read the Howey Test again and understand its implementation in the evaluation of securities.
Deaton shared his thoughts while reacting to a tweet by crypto-attorney Bill Morgan. In his tweet, Morgan questioned the SEC’s motive behind emphasizing XRP’s lack of intrinsic value. According to him, the commission’s argument in its interlocutory appeal is not clear since it tries to set apart XRP from being a digital asset, and goes on to categorize it as a commodity with no intrinsic value.
As per court filings, the SEC mentioned multiple times in its appeal that XRP has no intrinsic value.
For this reason, pro-XRP lawyers including Deaton and Morgan have slammed former SEC director Bill Hinman who testified that the commission does not have to meet all the requirements of a Howey Test when proving investment contracts.
Particularly, Morgan was interested in understanding the reason behind the SEC’s classification of XRP as a commodity with no intrinsic value, instead of Judge Analisa Torres’s ruling that found XRP was a digital asset.
XRP/USD Price Action Amidst Ripple Attorney’s Preparation Against the SEC’s Interlocutory Appeal
XRP/USD price action closed the 1-week chart 1.8% down and tested the intraday low on the Tuesday session at $0.5118.
The Ripplenet’s altcoin failed to break overhead resistance near the $0.5600 price level on August 20. This catalyzed a gradual drop to the current levels below the 100-day Simple Moving Average at $0.5230.
In our expert analysis, continued selling around this level could aggravate a downtrend below $0.5000. If this happens, the only saviour for the bulls is the $0.4252 main support level.
It bears mentioning that $0.4252 is an accumulation point for buyers. However, breaking below $0.5000 could result in several days of oscillation between the $0.4252 main support and the current resistance at $0.5600.
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