The recent outcome of the SEC v Binance case, in which Judge Amy Berman Jackson dismissed the SEC’s claims against Binance’s BNB token, could have far-reaching implications for the regulation of cryptocurrencies like XRP.
The involvement of John E. Deaton, who represents 75,000 XRP holders, highlights the importance of court decisions in shaping future rulings by the SEC.
Amidst the ongoing SEC vs Ripple case, XRP has shown some positive momentum, with a 1.67% increase in the past 24 hours and a rise above $0.48. This recovery has allowed XRP to overcome last week’s losses and potentially aim for the $0.50 mark if the momentum continues.
The outcome of the SEC v Binance case could set a precedent that affects the wider crypto market, including XRP. Judge Amy Berman Jackson recently rejected the SEC’s argument that secondary market transactions of Binance’s BNB token should be considered securities. This ruling was welcomed by John E. Deaton, who stated that it was a result of the efforts of himself and the 75,000 XRP holders he represents.
Deaton has filed an Amicus Brief on behalf of these XRP holders, who were involved in the Programmatic Sales of XRP ruling. The ruling in the SEC v Binance case could also have implications for the SEC v Coinbase case.
The increased involvement of the Commodity Futures Trading Commission (CFTC) could benefit XRP and the broader crypto market in several ways. Firstly, it could provide clarity on whether cryptocurrencies should be classified as securities, potentially paving the way for XRP-spot ETFs and a wider crypto-spot ETF market.
Furthermore, greater CFTC involvement could support the passage of the Lummis and Gillibrand Responsible Financial Innovation Act, which would give the CFTC more authority over the US digital asset space and promote innovation while protecting consumers.
Additionally, CFTC involvement could reduce the likelihood of the Digital Asset Anti-Money Laundering Act, which proposes stringent AML and CFT frameworks for digital assets under the SEC’s jurisdiction, becoming law.
In summary, if court rulings establish that cryptocurrencies are not securities, it could strengthen the role of the CFTC and create a more favorable environment for innovation. This could potentially lead to the approval of spot XRP ETFs and reduce regulatory challenges.
In terms of XRP’s price action, it remains below the 50-day and 200-day EMAs, indicating bearish trends. However, a move above these trend lines could allow bulls to target the 50-day EMA and potentially reach the 200-day EMA and the $0.55 mark.
Investors should closely monitor updates related to the SEC’s crypto cases and their response to the Binance ruling. If XRP falls below the $0.4650 level, it could indicate further decline towards the $0.45 mark.