Market
What Experts Say About Potential SEC Appeal
The US Securities and Exchange Commission (SEC) is likely to appeal against the court’s July 13 decision in the Ripple case.
As it happened, Federal Court Judge Analisa Torres determined that the XRP token is only a security when sold to institutional investors.
Experts Weigh In: Will SEC Appeal Ripple XRP Ruling by October 7?
Fox Business reporter Eleanor Terrett, citing a former SEC lawyer, said the securities regulator could appeal Judge Torres’s ruling, which had granted Ripple Labs a partial victory.
“Everyone over there [at the SEC] truly believes that the decision is wrong, that it’s not good law, and should be appealed,” read the report.
BeInCrypto recently reported that the SEC dropped claims against Ripple executives Chris Larsen and Brad Garlinghouse. This sparked speculation of an appeal focused on programmatic sales.
Several legal experts have commented on this speculation, including XRP advocate and Massachusetts Senate candidate John Deaton.
John Deaton
Deaton says Judge Torres’s ruling was very fact-specific, relying on the submitted XRP holder affidavits. Further, the SEC failed to establish a “common enterprise.” This is the second condition of the Howey Test, and appealing the ruling would not make sense.
“An appellate court could say, just as Judge Torres acknowledged, there could be a scenario where secondary sales could qualify as investment contracts because the facts meet all the Howey factors. But in the Ripple XRP case, the facts presented just don’t satisfy it. Thus, the case gets affirmed on appeal but it doesn’t prevent the SEC from arguing secondary sales constitute investment contracts in other cases,” Deaton noted.
Read more: Everything You Need To Know About Ripple vs. SEC
The Howey Test outlines four criteria that must be met for an investment contract to qualify as a security. First, there must be an investment of money. Second, the investment must be in a common enterprise. Third, there should be an expectation of profits. Finally, these profits should result from the efforts of others.
Judge Torres’s key finding in the Ripple case hinged on the third requirement. Specifically, the court determined that XRP’s sale on exchanges did not meet the expectation of profits based on the efforts of others. The ruling concluded that selling XRP on exchanges, where buyers purchased through an order book rather than directly from Ripple in an ICO or IEO, did not violate securities law.
John Deaton, who played a significant role in the case, submitted an Amicus Brief on behalf of XRP holders. His efforts contributed to the court’s ruling, with Judge Torres citing his submission of 3,800 affidavits from XRP holders as part of the decision.
Fred Rispoli
Another legal expert and XRP advocate, attorney Fred Rispoli, also weighed in. He articulated that the court explicitly said “programmatic sales” and not “secondary sales.” Per Rispoli, if an appeal does happen, it would be against the loss on programmatic sales.
This is because secondary sales on exchanges were excluded from the Court’s consideration and were not decided. Therefore, it cannot be an appellate issue.
“The difference is Ripple selling on an exchange as opposed to others selling on an exchange to each other. Page 23, n.16 of the 7/13/23 order addresses this,” Rispoli explained.
Looking ahead, Rispoli says XRP could surpass its peak price of $1.96 in 2021 and set a new all-time high.
Jeremy Hogan
Attorney Jeremy Hogan, who has garnered a huge following across social media, lending his expertise on legal matters in the cryptocurrency space, also commented. The partner at Hogan & Hogan law firm said the SEC had lost the plot. In his opinion, the securities regulator should consider what an appeal would mean for its mandate of investor protection and capital formation.
Meanwhile, investigative journalist Jungle Inc Crypto on X urges the SEC to appeal if it thinks the ruling on programmatic sales is wrong. This stance is based on the assumption that the secondary market needs more protection, as it comprises less knowledgeable investors. Nevertheless, the journalist insists that the SEC should first reflect on its real motive.
“The real question is whether the ruling was truly incorrect, or if the SEC simply doesn’t like the outcome. As Gary Gensler often says, disliking a law is different from not understanding it. If the SEC just does not agree with the current law, they should not appeal but should push Congress for updated regulations,” Jungle Inc Crypto wrote.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
As a result, the case remains unresolved, and the XRP community eagerly awaits further updates. The deadline for an appeal is set for October 7.
According to data from BeInCrypto, XRP is currently trading at $0.59, reflecting a modest 0.66% increase since the market opened on Friday.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin price started a fresh increase above the $104,000 zone. BTC is consolidating above $105,000 and might aim for a new all-time high.
- Bitcoin started a decent increase above the $102,500 resistance zone.
- The price is trading above $104,500 and the 100 hourly Simple moving average.
- There was a break above a connecting bearish trend line with resistance at $104,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start another increase if it stays above the $103,500 support zone.
Bitcoin Price Regains Traction
Bitcoin price started a decent upward move above the $102,500 zone. BTC was able to climb above the $103,500 and $104,000 levels.
The bulls even pushed the price above the $105,000 level. Besides, there was a break above a connecting bearish trend line with resistance at $104,000 on the hourly chart of the BTC/USD pair. The pair surpassed the 50% Fib retracement level of the downward move from the $109,112 swing high to the $100,114 low.
Bitcoin price is now trading above $104,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $107,000 level. It is close to the 76.4% Fib retracement level of the downward move from the $109,112 swing high to the $100,114 low.
The first key resistance is near the $107,500 level. A clear move above the $107,500 resistance might send the price higher. The next key resistance could be $109,000.
A close above the $109,000 resistance might send the price further higher. In the stated case, the price could rise and test the $110,000 resistance level and a new all-time high. Any more gains might send the price toward the $112,500 level.
Downside Correction In BTC?
If Bitcoin fails to rise above the $107,000 resistance zone, it could start a downside correction. Immediate support on the downside is near the $104,500 level. The first major support is near the $103,500 level.
The next support is now near the $102,800 zone. Any more losses might send the price toward the $100,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $104,500, followed by $103,500.
Major Resistance Levels – $107,000 and $108,500.
AI tokens surged on Wednesday after President Donald Trump unveiled a new joint venture to invest up to $500 billion in artificial intelligence infrastructure.
The partnership involves major players such as OpenAI, Oracle, and SoftBank and will form a new entity called Stargate.
Market Focuses on AI Coins as Trump’s Stargate Initiative Gains Traction
The Stargate Project will invest $500 billion over the next four years, building new AI infrastructure in the US. The venture will focus on developing crucial data centers and the electricity generation required to power the AI sector.
The announcement has already had a noticeable impact on the broader market, particularly in AI-related cryptocurrencies. Following the news, the market capitalization of AI tokens surged by 9%, reaching $45.83 billion at press time, according to CoinGecko.
In fact, the market cap of AI agent tokens alone rose by 13% to hit $14.9 billion.
AI agent tokens, such as Virtuals Protocol, AIXBT, and AI16Z, saw impressive gains. Virtuals Protocol rose by over 13% in the past 24 hours, while AI16Z experienced a remarkable 36% increase. AIXBT token rose by 27% over the same period.
The surge in AI tokens reflects a broader shift in market interest as investors move capital towards more “sentient” tokens.
“Capital is rotating back from static memes to sentient coins,” AI researcher S4mmy commented on Twitter.
The analyst added that Fartcoin and AIXBT are sustaining their “mindshare dominance,” but face declining market caps after a heated run. Commenting on Virtuals Protocol, he said it continues to solidify its position as a backbone of the Agentic infrastructure.
Moreover, analyst CyrilXBT said he believes “AI will create generational wealth in 2025.”
“People said Bitcoin was a joke. People said AI agents are a gimmick. Guess what else they’ll say? ‘Why didn’t I listen when generational wealth was staring me in the face?,” CyrilXBT commented.
The shift towards AI is particularly interesting, given the trend of investments a few days back. Capital was flowing into Donald Trump-related tokens, such as TRUMP and MELANIA, which have seen significant volatility.
However, BeInCrypto reported that smart money traders are now focusing on AI tokens after the hype around TRUMP faded. According to data from Nansen, a substantial amount of VIRTUAL, FARTCOIN, and AIXBT tokens are held by smart money.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Ethereum price is struggling below the $3,500 resistance while Bitcoin gains. ETH is consolidating above $3,150 and might aim for an upside break.
- Ethereum failed to gain pace for a close above $3,400 and $3,450.
- The price is trading above $3,300 and the 100-hourly Simple Moving Average.
- There is a key contracting triangle forming with resistance at $3,355 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start another increase if it clears the $3,400 resistance level.
Ethereum Price Aims Key Upside Break
Ethereum price started a decent upward move from the $3,200 level but upsides were limited compared to Bitcoin. ETH cleared the $3,250 resistance to move into a short-term bullish zone.
The bulls were able to push the price above the $3,300 resistance zone. Besides, there was a clear move above the 50% Fib retracement level of the downward move from the $3,445 swing high to the $3,203 low. However, the bears are still active below $3,400.
Ethereum price is now trading above $3,300 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,350 level or the 61.8% Fib retracement level of the downward move from the $3,445 swing high to the $3,203 low.
There is also a key contracting triangle forming with resistance at $3,355 on the hourly chart of ETH/USD. The first major resistance is near the $3,400 level. The main resistance is now forming near $3,445.
A clear move above the $3,445 resistance might send the price toward the $3,550 resistance. An upside break above the $3,550 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,650 resistance zone or even $3,720 in the near term.
Another Decline In ETH?
If Ethereum fails to clear the $3,400 resistance, it could start another decline. Initial support on the downside is near the $3,300 level. The first major support sits near the $3,250.
A clear move below the $3,250 support might push the price toward the $3,200 support. Any more losses might send the price toward the $3,120 support level in the near term. The next key support sits at $3,050.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $3,200
Major Resistance Level – $3,400
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