Crypto markets experienced significant movement following the Ripple v. SEC ruling, with XRP seeing a notable spike. However, AMLBot’s CEO cautioned that an appeal from the SEC could impact price momentum.

Last year, Ripple’s XRP gained 22.43% after an initial victory over the SEC. The sentiment that retail crypto investments aren’t securities boosted the market and increased prices. The recent ruling on Aug. 7 by U.S. federal judge Analissa Torres had a similar effect on XRP’s price.

Ripple’s XRP was still up 23% as Judge Torres ruled that there were no federal securities violations in sales to retail investors via crypto exchanges. However, institutional XRP sales were deemed a violation, leading to a $125 million penalty against Ripple.

“If the SEC pursues an appeal, the price might drop. Otherwise, we could see it rising,” said AMLBot CEO Slava Demchuk on Aug. 8.

Ripple and its CEO Brad Garlinghouse welcomed the verdict as a victory. However, Demchuk believes the SEC is likely to appeal, which could further complicate the situation for Ripple’s cryptocurrency, often considered to function like a quasi-stock.

“Based on the current case, selling tokens via crypto exchanges rather than directly might mitigate the risk of the token being classified as a security,” said Demchuk.

The court’s decision on XRP could influence the digital asset industry to challenge the SEC’s stance that most cryptocurrencies are securities. Scrutinized crypto businesses like Uniswap Labs and MetaMask maker Consensys may use this case as a precedent in their respective legal battles against the SEC.

Despite the upcoming presidential elections in November, which some believe might change the SEC’s approach to crypto regulation, Demchuk argued that the election outcome would not significantly alter the SEC’s stance.

Stay informed about the latest developments in the cryptocurrency world by exploring more news on Global Crypto News.

Post Views: 5