'Ripple' Surges to Record High... Outlook on Appeal with the US SEC

Ripple has reached a new all-time high in Korean won terms on the 16th, drawing attention from the cryptocurrency industry as the US Securities and Exchange Commission (SEC) expressed its intention to appeal against Ripple Labs, the issuer of Ripple.

On this day, Ripple touched 4,968 won during trading on the domestic cryptocurrency exchange Upbit. This surpasses the previous high of 4,925 won recorded in January 2018, marking a new record after seven years. Ripple's upward trend is attributed to the possibility of an interest rate cut following the announcement of the US December Consumer Price Index (CPI) and a more stable-than-expected core CPI.

The inauguration of US President-elect Donald Trump, scheduled for the 20th (local time), is also seen as a factor supporting Ripple's strength. There is speculation that the SEC may withdraw ongoing cryptocurrency-related lawsuits after Trump's inauguration, and it is reported that Trump has shown a positive stance on the idea of stockpiling US-based cryptocurrencies as strategic assets.

On the 15th (local time), the New York Post reported, citing industry sources, that "Trump has positively accepted the idea of stockpiling US-made cryptocurrencies like Ripple, Solana, and USD Coin as strategic assets."

Meanwhile, the SEC has expressed its determination to continue the legal battle over whether Ripple violated securities laws. On this day, the SEC submitted an opening brief to the US Court of Appeals for the Second Circuit, requesting a review of Ripple's security status and securities law violations. The SEC argued in the brief that "Ripple Labs led retail investors to expect profits from purchasing Ripple," and "therefore, Ripple Labs should be judged to have violated securities laws."

The cryptocurrency and legal communities believe that the SEC's appeal will have a limited impact on Ripple. The main reasons are the lack of grounds for the appeal and the upcoming resignation of Gary Gensler, the SEC chairman who led the lawsuit against Ripple Labs, on the 20th, making it unlikely that the SEC will continue with the appeal.

Jeremy Hogan, a partner attorney at the US law firm Hogan & Hogan, said, "The SEC's opening brief lacks grounds. It seems like the author knows it's a waste of time," predicting that the appeal will not proceed. Stuart Alderoty, Chief Legal Officer (CLO) of Ripple Labs, pointed out, "The SEC's appeal is likely to be dismissed once the Trump administration takes office," and "the SEC's actions are just noise."

Jin Hyun-soo, the representative attorney of Decent Law Office, told Bloomingbit, "Retail investors who purchased Ripple were not in an economic dependency expecting direct promises or profits from Ripple Labs," and "the SEC's appeal lacks legal grounds. Even if the appeal proceeds, it is unlikely that the court will accept it."