In South Africa, Ripple’s XRP has caught the attention of crypto enthusiasts as its price dipped below the crucial $0.60 (R11.30) mark for the first time in almost ten days, marking a second consecutive day of losses. This downturn reflects the ongoing debate among market participants over the legal challenges faced by Coinbase against the US Securities and Exchange Commission (SEC), a matter that also deeply involves Ripple.
The legal skirmishes between Coinbase, Ripple, and the SEC are increasingly entangled. At the heart of Coinbase’s defense is a previous ruling regarding XRP by Judge Torres, which asserted that XRP was not a security when sold via exchanges. This was initially seen as a victory for Ripple but now faces scrutiny as the judge in the SEC vs. Coinbase case rejected Coinbase’s plea to dismiss the lawsuit. Similar to Ripple, Coinbase is accused by the SEC of functioning as an unregistered securities intermediary, intertwining the fates of XRP and Coinbase within these legal battles.
Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has critiqued the SEC’s approach in the lawsuit against Coinbase, highlighting the regulator’s shifting definitions of a crypto ecosystem. Alderoty points out that the SEC’s deviation from the established “Howey” test—a benchmark for determining what constitutes an investment contract under US securities laws—raises questions about XRP’s designation as a security.
As the lawsuits progress, XRP’s classification as either a security or non-security remains pivotal, influencing the legal outcomes for both Ripple and Coinbase. Technical analysis shows XRP trading in a narrow range, facing possible further declines. Support levels are identified at $0.5386 (R10.14), with resistance at $0.6686 (R12.58), indicating a critical period for Ripple as it navigates both market volatility and legal challenges.
South African investors and global observers alike are keenly watching these developments, understanding that the outcomes could have broad implications for the cryptocurrency landscape, particularly regarding regulatory scrutiny and the legal status of digital assets.
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