The ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC) has taken a new turn as the SEC recently filed a submission to bolster its interlocutory appeal. Despite this development, the price of XRP, Ripple’s cryptocurrency, has shown little reaction, remaining relatively stable. Additionally, Ripple made headlines with its announcement of an impending acquisition.
Stuart Alderoty, the Chief Legal Officer of Ripple, took to social media on September 9 to criticize the SEC’s recent court filing. The filing by the SEC was an extension of its response to Ripple’s recent partial legal victory.
Alderoty characterized the SEC’s submission as a “hypocritical pivot,” drawing attention to what he saw as inconsistencies, manipulative actions, and a desire for increased regulation by SEC Chair Gary Gensler. He highlighted the irony of Gensler’s urgent appeal request despite his prior assertion that crypto rules were clear and should be adhered to by the industry. The SEC argued that complex legal issues, particularly related to the application of the Howey test, justified a review
As a result, the SEC has called upon the U.S. District Court for the Southern District of New York to approve its motion for an interlocutory appeal and to pause further proceedings until the resolution of this appeal.
Interestingly, the SEC’s latest filing coincided with Ripple’s announcement of acquiring Fortress Trust, a Nevada-based firm specializing in Web3-focused financial, regulatory, and technology infrastructure services. This acquisition follows Ripple’s earlier investment in Fortress Trust during its seed round in August 2022, when it became a minority shareholder in the company.
If the acquisition proceeds as planned, it will mark Ripple’s second acquisition in the same year. Earlier in the year, Ripple acquired Metaco, a Swiss-based company.
Despite these recent developments and legal maneuvers, the price of Ripple’s XRP cryptocurrency has displayed limited movement. An examination of the daily timeframe chart revealed minor declines over the past few days, with XRP trading at approximately $0.49 at the time of writing, reflecting a nearly 1% decrease in price. On the chart, the long Moving Average (blue line) acted as immediate resistance, while the short Moving Average (yellow line) served as long-term resistance levels at around $0.59 and $0.60.
This relatively subdued price action has resulted in XRP’s trend remaining below 35 on its Relative Strength Index (RSI), indicating a lack of significant market movement. As the legal battle between Ripple and the SEC continues, the cryptocurrency market watches closely for further developments.
