Ripple SEC Lawsuit: Regulator defies US court and hints at “digital assets securities” charges as XRP looks to rise to $2
The U.S. Securities and Exchange Commission (SEC) has signaled its intent to continue pursuing cases involving “digital asset securities,” even as the appeal in the Ripple lawsuit progresses in the Second Circuit Court.
This development coincides with XRP’s price surpassing $1 and aiming for $2, driven by speculation about SEC Chair Gary Gensler’s potential resignation and the lawsuit’s resolution under a Trump administration.
SEC Maintains Stance on Digital Asset Securities in Ripple Case
During a speech at the PLI’s 56th Annual Institute last week, SEC Chair Gary Gensler emphasized that “Bitcoin is not a security.”
However, he refrained from including XRP alongside Bitcoin, Ether, and stablecoins, underscoring the agency’s intent to continue treating it as a security. Gensler stated:
“Our focus, rather, has been on some of the 10,000 or so other digital assets, many of which courts have ruled were offered or sold as securities. Putting this in context, aside from bitcoin, ether, and stablecoins, the rest of this market approximates $600 billion.”
Crypto lawyer James Murphy, known as MetaLawMan, criticized the SEC’s continued use of the term “digital asset securities” in an X post on Wednesday, accusing the regulator of ignoring the court’s ruling on XRP’s status in the Ripple lawsuit.
The SEC also failed to adhere to its recent commitment to stop using “crypto asset securities” in its legal language.
The agency has appealed aspects of the summary judgment in the Ripple case, specifically the rulings on XRP sales by Ripple, distributions to employees and others, and sales on exchanges by Ripple executives Brad Garlinghouse and Chris Larsen.
Will the Ripple Lawsuit Be Dismissed?
The crypto community has called for the dismissal of the Ripple lawsuit and for Gensler’s resignation. Ripple CEO Brad Garlinghouse hoped the case would conclude following a potential Trump victory in the 2024 election.
Ripple CTO David Schwartz clarified that the company’s legal responsibilities are to its shareholders, not XRP holders.
He emphasized that Ripple can navigate the legal landscape around XRP, but digital asset prices are independent of Ripple’s efforts.
Speculation suggests the case could be dismissed or settled for $125 million.
XRP Price Targets $2
Lawyer Bill Morgan noted that Ripple’s activities have little influence on XRP’s price, as shown by long-term investors.
Gensler’s possible resignation and the anticipated resolution of the Ripple case have fueled bullish momentum, pushing XRP’s price to $1.
Currently, XRP holds at the 0.702 Fibonacci retracement level, with analysts projecting an upward move to the $1.6–$2 range.
Optimism within the XRP community and expectations of favorable crypto policies under Trump have supported the positive sentiment.
Prominent analyst CredibleCrypto suggested XRP could achieve a new all-time high “a lot quicker than most are expecting.”
The XRP/ETH pair recently reclaimed and retested a four-year range on the monthly chart, signaling a potential 250% upside.
In the past 24 hours, XRP has risen by over 1% and by 60% in a week, trading at $1.13 with a 24-hour range of $1.07 to $1.15. Trading volume increased by 7%, reflecting growing trader interest.