Ripple vs. SEC lawsuit updates, BTC price volatility ahead of US election and more: Bit Roundup November 4

TL;DR

Demand for Ripple-SEC continues, with the next key presentation in January 2025. The price of Bitcoin recently rose to almost $73,600 before falling to around $67,400, potentially influenced by political factors. Ethereum fell from $2,700 to $2,400, with analysts eyeing key support levels. The prolonged demand

The legal battle between Ripple and the US Securities and Exchange Commission (SEC) is still ongoing roughly four years after it began. It all started in 2020 when the agency accused the company of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP.

Last year, the case reached a turning point after federal judge Analisa Torres ruled that the company’s sales of XRP to retail investors on crypto exchanges did not violate US securities laws. The regulator officially appealed the decision a month ago, sparking a new wave of uncertainty. The action means that the lawsuit entered a new phase consisting of the presentation and an information process, with its final resolution probably delayed for a few more years.

It is worth mentioning that Ripple responded to the SEC with a cross-appeal, setting out some fundamental points that magistrates need to consider. The first question is whether an “investment agreement” under the Securities Act of 1933 requires a formal agreement, post-sale duties, and beneficial ownership rights of the buyer. This could redefine the interpretation of digital asset transactions.

The second point challenges the lower court’s ruling that the company’s XRP transfers meet the criteria in the SEC v. WJ Howey Co. case, which established the Howey test for determining what qualifies as an investment contract. Ripple claims that its transactions did not resemble an investment of money in an ordinary company, with profits that depended entirely on the efforts of the company.

Third, the company focused on “fair notice” (a term referring to the legal principle that a person or entity must be given clear and adequate details about the laws or regulations that apply to their actions). He insists that he provided potential XRP buyers with sufficient information about the uncertainty surrounding cryptocurrencies.

Finally, Ripple questioned the clarity of Judge Torres’ court order (which ordered the company to pay a $125 million fine for violating certain securities laws), arguing that it only instructs the company to follow the law without sufficient specifications.

More recently, James K. Filan (an American lawyer closely watching the legal fight) said that the Court of Appeals for the Second Circuit has ordered that the Commission’s brief must be filed on 15 January 2025 or earlier. Failure to act before the deadline may result in the dismissal of the appeal.

How is BTC?

The main digital asset has been one of the hottest topics in the crypto space due to its rapid price swings in the past week. Its valuation rose from $68,000 (according to CoinGecko data) on October 28 to $73,600 (almost a new all-time high) 24 hours later.

It consolidated around $72,000 in the next two days, and fell sharply towards the end of the month. The bulls tried to push the price on November 1, but the rally was short-lived and BTC continued to lose ground. It dropped below $68,000 on November 3, which is currently worth approximately $68,500.

BTC Price, Source: CoinGecko

One factor that may be contributing to the asset’s recent underperformance is the declining odds of Donald Trump winning the US presidential election. Last week, the Republican had a big lead in Polymarket: 66.9% to 33.1% for his opponent, Kamala Harris. The picture now looks very different, with Trump’s figure at 57.5%, while the Democratic candidate is still at 42.6%.

According to many industry participants, the former president is the best choice for the digital asset market, given his stated pro-crypto stance throughout his campaign. Recall that Trump promised to make the United States a leader in bitcoin mining and hinted at the establishment of a strategic reserve of BTC.

We have yet to see if the Republican can re-enter the White House as a winner and if he will keep his commitment.

What about ETH?

The second largest cryptocurrency rose above $2,700 on October 30. Like BTC, however, it headed south and is currently hovering around $2,460.

ETH price, Source: CoinGecko

According to some analysts, ETH remains on a bullish path as long as it trades above certain resistance zones. X user Ali Martinez believes it can shoot up to a new ATH of $6,000 if it doesn’t break below $2,400. ETH dropped to $2,417 on November 3, still holding the represented level.

Poseidon, on the other hand, promised to withdraw its holdings if the price of Ethereum fell below $2,450.

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