Important Points:

• The overall market capitalization of cryptocurrencies drops to $2.041 trillion as XRP loses 3.40% in the midst of a wider sell-off.
• Talk of an appeal in the SEC v. Ripple case is heating up; this could effect the stability of the price of XRP.
• The SEC’s decision to file an appeal will determine how much XRP will cost; in the upcoming weeks, volatility is predicted.

XRP Falls During a Cryptocurrency Sell-Off

After dropping 2.20% the day before, XRP fell 3.40% on Tuesday, August 27, finishing at $0.5674. XRP tracked the overall decline in the cryptocurrency market, which experienced a 5.30 percent decline in market capitalization to $2.041 trillion.

Better than anticipated Investor expectations on repeated 2024 Fed rate cuts were put to the test by US economic data, which sparked a widespread sell-off in cryptocurrencies. On Tuesday, investor sentiment was impacted by US consumer confidence. Investor concerns about a hard US landing and the necessity of swift Fed rate cuts to support the economy were probably allayed by an unanticipated surge in confidence.

SEC vs. Ripple: Talk of an appeal heats up ahead of the SEC closed meeting

It has been three weeks since August 7th, when Judge Analisa Torres rendered the final decision in the SEC vs. Ripple case. Regarding whether or not to file an appeal, the SEC has not said anything.

Pro-crypto attorney Fred Rispoli reopened the appeals debate on Tuesday by posing the question,

“Can any securities lawyers provide me with an answer on the likelihood of an SEC vs. Ripple appeal? If Ripple prevails on all fronts against the SEC, would the SEC be required to pay statutory interest on it as well?”

James Farrell, general counsel at AscendEX and a former member of the SEC,

“Saying that typically Ripple would post a bond securing the decision and delay payment while an appeal was pending. The cost of the bond would normally be assessed against the SEC in the event of a loss as part of the appeal’s costs under FRAP 39 (at the 2d Circuit is discretion, just like any bill of costs).”

Farrell continued,

“Even more complicated if the Second Circuit remands for a new trial—for instance, if it determines that certain factual concerns should have prevented the award of summary judgment. All of this presupposes a cross-appeal. Because if Ripple does not file a cross-appeal, it is essentially admitting that it owes $125 million and that the appeals court is powerless to address matters that are not before it.”

Farrell’s remark emphasized the danger the SEC would run if it decides to appeal the Ripple case’s decisions. The decision that Ripple sold unregistered XRP in violation of US securities laws may be contested by a cross-appeal filed by Ripple. A cross-appeal might undermine the SEC’s regulatory strategy by creating a precedent for XRP sales.

A SEC Appeal Could Happen Soon?

On Thursday, August 29, the SEC will have a secret meeting where the Ripple matter may come up for discussion. An appeal might compel Ripple to file a cross-appeal and drag out the litigation until 2025.

Early October is when the 60-day appeal deadline finishes, therefore the appeals process will go on even after the US presidential election. It might be necessary for the SEC to think about the potential effects of an administration change.

The Future of XRP Price Depends on SEC Action

The SEC’s preparations for an appeal will determine price movements. The SEC’s appeal might cause XRP to drop below $0.40. On the other hand, if the SEC decides not to appeal the case’s decisions, XRP may aim to recover to $1.00. The July 2023 Programmatic Sales of XRP judgment caused XRP to spike from $0.4696 to a high of $0.9327.

Investors should be on the lookout because news about appeals will probably affect XRP price movements. Keep yourself informed about XRP and the wider cryptocurrency industry by following our most recent news and analysis.

Price Action of XRP

Every Day Schedule

Bullish price indications were sent by XRP as it stayed above the 200-day and 50-day moving averages.

A bounce back to $0.6000 might be supported by a breakout from the 50-day EMA. Moreover, a bounce back to $0.60 would portend a move up toward the resistance level at $0.6609 and the high of $0.6434 on August 7.

Updates pertaining to SEC vs. crypto cases and SEC activity should be taken into account.

On the other hand, a decline beneath the 200-day and 50-day EMsA would indicate a positive trend reversal and a potential decline below $0.50.

At 46.54 on the 14-day RSI, XRP might drop below $0.50 before going into oversold territory.

At the moment, India’s regulations surrounding cryptocurrencies are mostly focused on counterterrorism financing (CTF) and anti-money laundering (AML).

Ajay Seth, the Economic Affairs Secretary, said that India will publish a discussion paper by September detailing its policy position on cryptocurrencies. The purpose of this project is to get input from pertinent parties regarding the suggested legal framework for cryptocurrencies in the nation. The upcoming discussion paper will examine existing constraints and solicit feedback on the scope of bitcoin legislation in India.

In an interview with Moneycontrol, Seth mentioned that anti-money laundering (AML) and counter-terror financing (CTF) regulations currently govern cryptocurrencies in India. Should the scope of regulation be expanded beyond that point, as it cannot extend further? What position should the policy take? The discussion paper will contain all of that information.”

India expanded the scope of CTF and AML regulations to cover cryptoassets and intermediaries in March 2023. A more comprehensive strategy for cryptocurrencies is presently being developed by an inter-ministerial group that comprises the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI). An interministerial panel is now investigating a more comprehensive cryptocurrency policy. Before September, we hope to release the discussion paper,” Seth continued.

The choice to write a discussion paper came about as a result of the G20 member nations endorsing the principles during India’s leadership last year. The Financial Stability Board (FSB) and the International Monetary Fund (IMF) developed these guidelines, which recommended against a complete prohibition on cryptocurrency activities because they were deemed unfeasible.

Seth emphasised the significance of the G20’s established roadmap, which offers a structure for evaluating the risks and possible applications of cryptocurrencies. This approach is probably going to have an impact on how India’s discussion paper develops.

What Does the Paper Expect To Present?
The purpose of the paper is to introduce concerns to stakeholders and solicit their opinions in order to start a conversation. This strategy is consistent with a story by Reuters earlier this year, which stated that Sebi has proposed that many regulators supervise the trading of cryptocurrencies, indicating the willingness of certain authorities to allow private virtual assets. On the other hand, the RBI has voiced worries over the macroeconomic dangers that private digital currencies provide.

By obtaining feedback from different stakeholders, a balanced regulatory framework may be able to be created. India’s focus on cryptocurrencies is currently on AML and CTF regulations, but Edul Patel, CEO of Mudrex, told ABP Live that “a wider mandate is definitely needed to expand the scope to include consumer protection, market integrity, and innovation that can ensure responsible growth.” “The interministerial group’s decision to include RBI and SEBI indicates a cooperative effort that strikes a balance between innovation and risk mitigation. We eagerly await the September publication of the paper.”

Ashish Singhal, a co-founder of CoinSwitch, stated, “We look forward to reading the fine print and contributing to robust cryptoasset regulations focused on consumer protection and innovation in India.”

Significant progress has been made in India’s regulation of cryptocurrencies, notably the central bank’s 2018 ban on financial institutions working with cryptocurrency users or exchanges, which was later overturned by the Supreme Court in 2020. The government attempted to submit a bill in 2021 that would have prohibited private cryptocurrency use, but it was never passed.