The ruling could hinge on whether Ripple continued to breach US securities after the December 2020 complaint.
A verdict is likely to come before the US Presidential Election. Crypto court rulings could influence the verdict.
Binance Court Ruling Fuels Crypto Market Optimism
The recent Binance ruling set a precedent on whether XRP is a security or a commodity.
Judge Amy Berman Jackson dismissed the SEC claim against Binance, alleging that secondary sales of binance coin (BNB) qualify as securities under the Howey test. Significantly, Judge Jackson cited Judge Analisa Torres’s Programmatic Sales of XRP ruling, surmising,
“The court is inclined to agree with the approach of the court in Ripple Labs, since the ‘it-is-what-it-is’ approach of the SEC appears to be inconsistent with the clear Supreme Court directives […].”
Moreover, the US digital asset space has become a political agenda.
Trump Makes Crypto Political in Presidential Election Race
In May, Donald Trump targeted the crypto vote, stating,
“If you like crypto in any form…and it comes in many forms…if you’re in favor of crypto, you better vote Trump.”
This week, Trump announced JD Vance as his 2024 Presidential Election running mate. Vance is a critic of SEC Chair Gensler’s assault on cryptos. The era of SEC regulation through enforcement may be coming to an end.
On Wednesday, Ripple CEO Brad Garlinghouse discussed the US political stage and crypto. He said,
“This should never really have become a partisan issue. […] It’s been refreshing to see the Republican Party lean into that as part of their platform.”
When asked if there are any talks with the SEC about the Ripple case, Garlinghouse said he can’t talk about it.
Favorable outcomes to SEC vs. crypto cases and a Trump victory could fuel innovation and growth in the US digital asset space.
Investors should remain vigilant with the SEC vs. Ripple case verdict imminent. Stay updated with our latest news and analysis to manage exposures to XRP and the broader crypto market.