Experts speculate that the outcome of Coinbase’s legal battle could have an impact on the price of XRP in the future.
Ripple’s Chief Legal Officer, Stuart Alderoty, recently criticized the regulatory approach of the SEC and Chair Gary Gensler, expressing concerns that excessive regulations are stifling the digital asset industry.
While the crypto community eagerly awaits the resolution of the SEC vs Ripple case, attention has shifted to the SEC vs Coinbase battle. Market analysts believe that the movement of XRP’s price could reflect the developments in the legal battle between the SEC and Coinbase.
Currently, the SEC and Coinbase are awaiting a court ruling on Coinbase’s Motion for the Interlocutory Appeal, which was filed in April 2024. This motion seeks permission to appeal against the ruling on Coinbase’s Motion to Dismiss (MTD).
Back in August 2023, crypto exchange Coinbase submitted the MTD, arguing that the SEC does not have the authority to regulate crypto exchanges. However, Judge Katherine Failla denied the MTD, stating that the allegations in the complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered intermediary of securities.
If Judge Failla grants Coinbase’s Motion for Interlocutory Appeal, the SEC vs Coinbase case will be put on hold until the appeal process is completed. Successfully overturning the Motion to Dismiss could have positive implications for XRP and the wider cryptocurrency market.
Ripple and Coinbase have referred to the recent ruling in favor of Binance by Judge Amy Berman Jackson. The judge ruled that the secondary market sales of BNB coin and BUSD stablecoin do not constitute securities. Both Ripple and Coinbase have highlighted the lack of consistency and clarity in applying uniform crypto regulations, as judgments largely depend on the judge and the court giving the ruling.
Stuart Alderoty, Ripple’s Chief Legal Officer, expressed concerns about the regulatory approach to cryptocurrencies in the U.S. during a panel discussion at Zurich’s Point Zero Forum. He specifically criticized the SEC and Chair Gary Gensler for imposing overly strict regulations, causing frustration within the Bitcoin sector.
Alderoty believes that the lack of consistency and clarity in the U.S. regulatory environment is hindering the growth and mainstream acceptance of digital assets.
In terms of price action, XRP’s current movement aligns with the broader market development, including the Mt. Gox creditor repayment and the German government’s massive sell-off. At the time of writing, XRP is trading at $0.4343, up 3.11%, with a market cap of $24.3 billion. If XRP breaks above $0.50, it could pave the way for a further rally to $0.95, according to Crypto News Flash.
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