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XRP News Today: Ripple’s legal battle with the SEC sows uncertainty in the market
On Monday, April 1, the BTC spot ETF market recorded net outflows of $86 million. Spot BTC ETF market flow data for Tuesday, April 2 could cause further losses. Net outflows from Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF put iShares Bitcoin Trust in the driver’s seat to avoid a second day of net outflows.
The current pullback in the cryptocurrency market has coincided with increased uncertainty about the situation SEC case against Ripple.
SEC against Ripple: programmatic sales and appeal to the SEC
There were not SEC case against Ripple-Related updates to influence XRP price action. However, the SEC intends to appeal XRP’s programmatic sales dominant a headwind remains for XRP.
The court rulings in the SEC cases against Terraform Labs and Coinbase have likely ended hopes of a settlement in the SEC case against Ripple.
- SEC v. Terraform Labs: Judge Rakoff governed that Terraform Labs and founder Do Kwon violated U.S. securities laws by failing to register Luna and TerraUSD as securities.
- SEC vs. Coinbase: Judge Failla partially granted Coinbase (CURRENCY) Motion to Dismiss (MTD). But Judge Failla did not grant the MTD alleging that Coinbase was operating as an unregistered stock exchange.
The two rulings put the SEC in a better position to address the appeal of the programmatic sales ruling. If the SEC succeeds in overturning the ruling on programmatic sales, the US cryptocurrency market could face a difficult transition period. SEC registration requirements could force more crypto firms abroad and significantly impact U.S. investors’ access to the cryptocurrency market.
The SEC must wait until the SEC v. Ripple case concludes to appeal the court rulings.