Ripple’s Battle in California Courts
Last week, the courts in California gave Ripple a much-needed win, dismissing allegations that Ripple breached US securities laws. Nevertheless, Ripple will go to trial. In the court order, Judge Phyllis J. Hamilton surmised that,
“Given the relative novelty of cryptocurrency, and given the lack of any controlling law regarding the motivation of a reasonable cryptocurrency investor, the court declines to find as a matter of law that a reasonable investor would have derived any expectation of profit from general cryptocurrency market trends, as opposed to Ripple’s efforts to facilitate XRP’s use in cross-border payments, among other things.”
Pivotally, Judge Hamilton concluded that,
“Accordingly, the [court] cannot find as a matter of law that Ripple’s conduct would not have led a reasonable investor to have an expectation of profit due to the efforts of others.”
The outcome of the Californian trial may have more significance than the SEC vs. Ripple case. If the court finds XRP sales failed the Howey test, the SEC could justify appealing against the Programmatic Sales of XRP ruling.
Future Outlook: What’s Next for XRP?
XRP could face intensified selling pressure if the SEC files an appeal. In July 2023, XRP surged to a high of $0.9327 before hitting the reverse on speculation about an SEC appeal against the ruling.
XRP could continue to face stern selling pressure at $0.50 until there is more clarity on SEC plans vis-à-vis an appeal and the court ruling in California.
As the legal battles intensify, XRP investors should brace for continued volatility. Stay tuned for further updates as the court rulings unfold.
XRP Price Action
Read More: XRP News Today: Ripple’s Legal Woes Mount: XRP Drops as Court Verdict Looms