Ripple (XRP) has surged above $3 for the first time since 2018, marking a significant milestone on January 15. This remarkable price movement highlights growing confidence among investors ahead of the SEC’s imminent appeal-related filing. The rally suggests a market belief that the SEC may face challenges in overturning previous rulings in the SEC vs. Ripple case.
Recent legal developments have seen courts criticize the SEC’s enforcement strategies, reflecting a broader shift in attitudes toward the agency’s aggressive actions against crypto firms. In its bid to challenge the Programmatic Sales of XRP ruling, the SEC may encounter a similarly skeptical reception in its high-stakes appeal process.
Attorney John E. Deaton, serving as Amicus Curiae, has emphasized the complexities of the appeal. A victory for the SEC in the Second Circuit could lead to the case being sent back to Judge Analisa Torres. If Ripple were to lose at this stage, the company is expected to petition the US Supreme Court for a review. A Supreme Court ruling in favor of Ripple would establish a landmark precedent for the US crypto industry, particularly regarding XRP and other digital assets. However, the current ruling remains non-binding.
While appeal filings often create uncertainty, XRP investors appear optimistic, buoyed by potential changes in the SEC’s approach. Reports suggest that a new SEC leadership under a Trump-appointed chair, such as Paul Atkins, could adopt a more crypto-friendly stance. This shift would likely prioritize fraud prevention while relaxing enforcement on legitimate crypto activities, providing a boost to XRP and the broader market.
The market’s confidence was further strengthened by reports of the SEC considering dismissals or pauses of certain non-fraud crypto cases. Key departures from the SEC, including Chair Gensler and Commissioners Jaime Lizarrage and Caroline Crenshaw, signal potential policy shifts. These changes have fueled speculation of a more balanced regulatory framework, adding to XRP’s momentum.
XRP closed at $3.1438 on January 15, a 17.82% rise following a 5.70% gain the previous day. It significantly outperformed the broader crypto market, which grew by 5.44%, lifting the total market capitalization to $3.46 trillion. XRP’s future trajectory largely depends on the SEC’s next steps. A strong opening brief could drive XRP toward $2.5, while inaction might propel it beyond its 2018 high of $3.5505.
Traders should monitor the SEC’s appeal filing, due by midnight on January 15 (EST), as it will likely dictate XRP’s short-term price movements.