The ripple-based token soared to a six-year high on Wednesday, with traders buoyed by the highly anticipated CPI inflation data report and Bitcoin’s strong rally.
For the first time since early January 2018, the token briefly exceeded $3 during the trading session before marginally reversing its gains.
Currently trading at $2.95, it has outperformed Bitcoin and most major altcoins, showing 11% gains over the last day.
Monica Long, the president of Ripple, stated that she anticipates a spot ETF to be approved “very soon” because the incoming administration will expedite approvals.
Alex Thorn, the head of research at Galaxy, stated in a post on X that XRP needs to reach $4.24 to achieve a new high after accounting for inflation over time.
SEC begins appeal against Ripple
The SEC rejected Ripple’s delay request and filed its opening brief in an appeal against Ripple’s victory.
- The SEC filed its opening brief on Wednesday in the appeal against Ripple Labs, restating arguments that had previously failed to persuade the court that XRP should be considered a security.
“The SEC’s appeal brief is a rehash of already failed arguments – and is likely to be abandoned by the next administration,” Alderoty said in a statement following the filing.
“That was a waste of time and taxpayer money,” he continued. “However, we are confident in our position on appeal and look forward to working with the new SEC leadership to resolve this matter.” He added.
- The SEC further contended that XRP, which was given as employee compensation and in business transactions, was incorrectly excluded from the list of securities. Judge Torres concluded that while XRP was a security when sold to institutions, it was not when sold to individual investors via exchanges because the latter were unaware of the seller.
- The financial watchdog argued in its appeal that XRP purchasers, including individual investors, would have anticipated a profit because of what it claimed were Ripple’s token marketing initiatives.
- It asserted that XRP was an investment contract under the securities-defining Howey test because of Ripple’s actions, a claim the agency has made against several cryptocurrency companies and on which it has taken action.
Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), has come under fire from Ripple executives for his regulatory style and the agency’s tenacity in court cases. “Gensler’s war on crypto ends at the SEC on January 20,” said Stuart Alderoty, general counsel for Ripple, in response to the SEC’s appeal.
Gensler’s expected resignation on January 20, the same day Donald Trump took office in 2017, has stoked speculation about possible changes to crypto policy. Trump, who has increasingly expressed support for Bitcoin and pro-crypto views, has nominated pro-crypto candidates, signaling a leadership change that could be more favorable to the digital asset sector.
Many in the crypto community see this transition as an opportunity for more constructive and transparent regulations, in contrast to Gensler’s controversial tenure. Ripple remains optimistic, highlighting its preparedness to handle the SEC’s appeal and its readiness for a regulatory landscape that supports innovation.
