Despite the recent move by the United States Securities and Exchange Commission (SEC) to file an interlocutory appeal, the price of XRP has shown a slight uptick over the past 24 hours, with a minimal 4% retraction observed over the previous week, as per CoinMarketCap data. This development appears hopeful, particularly considering the current legal climate surrounding Ripple.
Unfounded Fears and the Real Status of XRP
Initial reactions to the SEC’s motion have been largely pessimistic, with many spreading “fear, uncertainty, and doubt” (FUD) about the potential threat to XRP’s status as a non-security. However, such fears are baseless. In fact, Judge Torres has affirmed that XRP is not a security, referencing the SEC v Telegram case to categorize digital assets like XRP as commodities. The SEC’s appeal mainly addresses allegations against Ripple and its executives related to programmatic and individual XRP sales, not individual peer-to-peer trading activities on exchanges.
Institutional Investors’ Positive Outlook for Altcoins
A recent report highlighted that Fineqia International Inc., a prominent fintech and digital asset investment firm, experienced a surge in investor interest, leading to a 70% increase in the total Assets Under Management (AUM) for global Exchange Traded Products (ETPs) tied to digital assets. The AUM rose by 70% this year to $34 billion by the end of July, surpassing the 47.7% rise in the underlying value of digital assets. In July, funds flowed into cryptocurrencies, notably XRP, which saw a 57% boost in AUM following the SEC v. Ripple Labs verdict. However, Bitcoin and Ethereum continue to dominate the digital asset and fintech investment space, accounting for over 90% of digital asset ETP AUMs, according to Fineqia CEO Bundeep Singh Rangar.
The SEC’s Chances of Winning on Appeal
As for the SEC’s certification for interlocutory appeal, Ripple still has the opportunity to respond before Judge Torres delivers her verdict. Yet, many legal commentators believe the agency’s chances of success are slim. For instance, MetaLawMan expressed on “X” that while interlocutory appeals generally have a low success rate, Judge Rakoff’s decision in the Terraform Labs case may increase the likelihood of Judge Torres certifying the interlocutory appeal.
So, is a return to all-time highs above $3 on the cards for XRP in the near future? While it’s impossible to predict with certainty, keeping a close eye on XRP and the XRPL use cases is advisable as crypto adoption continues to grow. Developments such as the Palau Stablecoin project and Ripple’s membership in the International Swaps and Derivatives Association (ISDA) are generating excitement. However, it’s important to remember that these developments, particularly in the case of ISDA, may not have a short-term impact on XRP, and investing in cryptocurrencies carries significant risk.
For those interested in tracking these developments and the XRP price even as SEC seeks to appeal landmark Ripple ruling, the cryptoview.io application can be a useful tool. It provides a comprehensive view of the crypto market, enabling users to stay informed about price movements and industry news.
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