- XRP users fear the court may be lenient with the SEC on appeal matters.
- Growing uncertainty caused XRP to decline 5.33% this week.
- A successful appeal by the SEC could hurt XRP’s price and the crypto market.
The crypto market rally has lost steam due to concerns that the court might overlook the SEC’s missed deadline and allow the commission to proceed with its appeal in the SEC vs. Ripple case. XRP has fallen 5.33% this week as uncertainty around the case intensifies.
The SEC missed the October 18th deadline to submit Form C, which outlines the specific aspects of the judgment the commission wants to appeal. The United States Court of Appeals for the Second Circuit issued a notice acknowledging the SEC’s failure to meet this deadline.
The notice stated that the US Court of Appeals for the 2nd Circuit may not hear oral arguments without the court’s permission, given the SEC’s missed deadline. This notice worries crypto users who believe the court could be lenient and allow the SEC to continue with the appeal rather than dismissing the case.
XRP reached a high of $0.9327 in July 2023 after Judge Analisa Torres delivered a ruling partially in favor of Ripple. The judge stated that programmatic sales of XRP did not qualify the token as a security because the transactions did not satisfy the third prong of the Howey Test.
Read also: SEC vs. Ripple: Appeal Filed, XRP Price Nears $0.55
Crypto users fear that overturning this judgment could hurt XRP’s price and set a precedent that would affect the crypto firms under scrutiny by the SEC. Binance and Coinbase could be forced to delist several cryptocurrencies, a scenario that could destabilize the crypto industry and trigger a significant market decline.
XRP has dropped by 5.58% since Monday, signaling cautiousness in investors’ approach. The altcoin traded for $0.53105 as of writing, slightly below the resistance at $0.55. Analysts expect XRP to remain below this level until the SEC submits its opening brief or the court confirms a dismissal of the appeal.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
