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- A former attorney of the US Securities and Exchange Commission (SEC) has confirmed that Ripple has not yet withdrawn its cross-appeal.
- Fagel has disclosed that both parties could jointly drop the appeals after the SEC votes to approve the dismissal.
US District Court Judge for the Southern District of New York, Analisa Torres, recently rejected a joint bid by the US Securities and Exchange Commission (SEC) and Ripple Labs.
The joint request sought to dissolve an existing injunction on XRP sales to institutional investors and reduce the imposed penalty from $125 million to $50 million. As detailed in our earlier post, the ruling established that their request failed to prove the “exceptional circumstances” that justify the need to vacate the final judgment.
Commenting on this ruling, Chief Legal Officer (CLO) of Ripple, Stuart Alderoty, clarified that this does not change the legal status of XRP as a non-security. In that post, Ripple boss Brad Garlinghouse was reported to have hinted at the company’s decision to drop its cross-appeal, hoping the SEC does the same. More than a month after the report, Ripple’s $125 million fine is alleged to remain unpaid.
The Appeal Withdrawal of Both Parties
Recently, an X user identified as William shared an article that suggests that Ripple has already withdrawn its cross-appeal after paying its $125 million fine into a bank escrow account. In that post, it was stated that the SEC has not yet dropped its appeal. However, former SEC official Marc Fagel responded that this is partially true.
In his reply, Fagel clarified that neither party has dismissed their respective appeals. According to him, this could only happen jointly after the Commission votes to approve dismissal. Once that happens, the penalty in escrow at Ripple’s counsel’s bank would be transferred to the US Treasury.
This is not the first time Fagel has clarified a widely speculated rumor that supposedly distorts fact. As previously mentioned in our news brief, Fagel earlier clarified that the original charges against Ripple occurred during the first administration of US President Donald Trump. At that time, Jay Clayton was the chairman of the SEC.
The charges were brought under Trump/Clayton, long before Gensler was appointed. And the SEC isn’t dragging anything out; the matter is before a judge for decision.
Ripple (XRP) Price Reactions
Pending the official closure of the Ripple vs SEC case, XRP is reacting seriously to other external factors as the price just declined by 4.8% in the last 24 hours and 4% in the last seven days to trade at $2.9. According to our recent update, liquidation in the market has increased to $756 million in just 24 hours.
As indicated in our earlier analysis, a hidden rally has been spotted in its price chart, but it is tied to the Dollar Index (DXY). Proving this claim, analyst Aljarrah pointed out how XRP surged to $3.8 in the 2017/2018 cycle when the DXY declined from 103.8 to 88. In 2021, the DXY fell to 89, and XRP surged to $1.96 at that time. According to him, a similar move could be recorded soon.
For an analyst called Mikybull Crypto, XRP could likely hit $14 this cycle once it breaks above the higher resistance level of a symmetrical triangle, as explained in our earlier publication.
