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The SEC's silence triggers the collapse of XRP as ETF approval hangs in the balance.
$XRP continued its sharp decline as the SEC's silence on the appeal in the Ripple case and delays in ETF approval fueled investor uncertainty.
The currency continued its downfall, losing 6.54% on Saturday, August 2. After a loss of 2.02% on Friday, XRP closed the session at $2.7675. XRP underperformed compared to the broader crypto market, which fell by 1.43% with a total market capitalization of $3.58 trillion.
Five closed-door meetings and no vote on the appeal
The SEC has conducted five closed-door meetings since Judge Analisa Torres rejected the joint request from Ripple and the SEC for a landmark decision on the terms of the transaction. Previously, the SEC and Ripple had agreed to withdraw their respective appeals if Judge Torres supported a lesser sanction and the lifting of the injunction prohibiting the sale of XRP to institutional investors.
Despite Judge Torres's ruling, Ripple announced the withdrawal of its cross-appeal on June 27. The announcement suggested that the parties had agreed to withdraw their appeals. However, the SEC has yet to vote on withdrawing its appeal, in the absence of a landmark decision on the terms of the transaction. The continued delay by the SEC in announcing the withdrawal of the appeal has increased pressure on XRP. The currency reached an all-time high of $3.6606 (Binance Exchange) on July 18, then fell to a four-week low of $2.7297 on August 3.
The approvals of the spot ETF on XRP depend on the SEC's withdrawal of the appeal. It is worth noting that the SEC's delay in voting could also affect the timing for the approval of a spot ETF on XRP. The SEC contested the decision regarding the programmatic sales of XRP. Judge Torres ruled that such sales do not meet the third criterion of the Howey test, meaning that the currency is not considered a security in secondary sales. The court's decision allowed U.S. crypto exchanges to relist XRP without falling under SEC supervision. However, exchanges could remove the currency if the SEC were to contest the decision. Any delistings could limit access to the currency's market, affecting spot ETFs on XRP.
Price outlook for XRP: SEC appeal vote and ETF news. The price trajectory of XRP in the short term depends on the SEC appeal vote and developments regarding spot ETFs. The SEC's withdrawal of the appeal could trigger a rebound. Growing optimism for the launch of a spot ETF on XRP could push the currency beyond its all-time high of $3.6606, potentially opening the door to $5.
