- Ripple’s XRP legal victory may face appeal challenges, affecting its market outlook.
- The recent XRP price drop coincides with market turbulence and a negative PMI report.
- Chris Larsen’s political endorsement may impact investor sentiment amid regulatory fears.
The legal status of XRP, Ripple’s cryptocurrency, remains uncertain, especially after recent court rulings. While a judge’s finding on XRP’s nature was a win for Ripple, the decision could be challenged on appeal, and its implications under Australian law are unclear.
In Australia, the notion that a judge’s finding on the nature of XRP could not be treated differently on appeal is not absolute. If the ratio and reasoning behind a decision are not accepted on appeal, the obiter, or the comments made as part of the judge’s reasoning, could be revisited and potentially altered.
SEC’s Potential Appeal and Market Challenges
Crypto lawyer Marc Fagel suggests the SEC may try to bring this matter to the Court of Appeals, though success is uncertain. The SEC’s track record of needing to be more precise in these cases leaves room for interpretation. Even if the appeal moves forward, it’s unclear whether the Second Circuit will address this particular aspect.
Read also: Ripple’s RLUSD: Institutions-Only at Launch, CTO Confirms
Recent economic developments that have caused significant market turbulence have added to the complexity of Ripple’s situation. On September 6, the price of XRP dropped below a crucial support level, coinciding with a downturn in global stock markets triggered by an unfavorable Purchasing Managers’ Index (PMI) report. This market shift also saw Bitcoin break a key support level, leading to widespread declines across the cryptocurrency market.
Ripple Chairman’s Controversial Endorsement
Adding to the complexity, Ripple Chairman Chris Larsen’s public support for Vice President Kamala Harris in the upcoming US presidential election has stirred controversy. This move is particularly contentious given the Biden-Harris administration’s perceived anti-crypto stance, especially with the SEC’s recent aggressive actions.
The timing of Larsen’s endorsement is notable. While Ripple achieved a reduction in its penalty from $2 billion to $125 million following its legal battle with the SEC, aligning with a political figure associated with anti-crypto sentiment could alienate investors.
The move might polarize opinions, attract criticism, and drive away those already wary of the current regulatory environment. At press time, XRP’s price is $0.528166, reflecting a 0.21% decrease in the last 24 hours.
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