XRP's price took a hit after a legal setback in US Federal Court.
On Thursday, 26 June, Judge Analisa Torres of the US District Court for the Southern District of New York rejected a joint request from Ripple Labs and the US Securities and Exchange Commission (SEC) to fast-track a component of their ongoing case.
In recent weeks XRP had been gaining ground, but the ruling paused its recovery just as it neared a key resistance level of $2.23. XRP is currently trading near $2.09 at 12:30 UTC after falling -3.96% in the past 24 hours.
This sharp downward trend from XRP compares with a -1.1% decline in Bitcoin, and the broader crypto market, with the 21Shares Crypto Basket Index, which tracks the performance of the top five cryptocurrencies, down just -0.7% at the same time. This suggests XRP’s decline is steeper than the general market trend, likely driven by the most recent court ruling.
Day in Court
The legal dispute between Ripple and the SEC revolves around whether XRP can be defined as security. In 2020, the SEC sued Ripple after it raised over $1.3 billion by selling XRP in an unregistered securities offering.
XRP is a digital asset created by Ripple Labs in 2012 and was first traded in 2013. It was designed for fast and low-cost cross-border payments.
In the SEC’s opinion, XRP is a security, meaning Ripple should have registered those sales with the agency and followed specific investor protection rules. Ripple disputed this accusation.
While the SEC recently dropped its appeal, suggesting the conflict may be nearing an end, Judge Torres said there are still procedural issues that must be resolved. She also stressed that Ripple and the SEC cannot bypass court rulings through private agreements.
Crypto-Friendly Environment
Although the US federal bureaucracy under the second Trump administration has moved away from active litigation against crypto firms, Ripple still faces legal uncertainty.
Ripple's Chief Legal Officer, Stuart Alderoty, clarified the company’s position in a statement on X, writing: “The Court gave us two options: dismiss our appeal challenging the finding on historic institutional sales—or press forward with the appeal. Stay tuned. Either way, XRP’s legal status as not a security remains unchanged.”
Ripple has reportedly adjusted its practices to align with past rulings and appears to be seeking a long-term solution for selling XRP to institutions legally.
Price Moves
XRP’s nearly -4% decline on the day shows that digital assets may be sensitive to regulatory developments. Indeed, major DeFi tokens rallied following the SEC’s decision to revisit regulations which held developers liable for their products’ ultimate end use.
XRP found support at the $2.09 level, and it remains crucial as technical indicators show bearish momentum in the near term. A break below this threshold could accelerate the decline, while a sustained move above $2.23 may be the first sign of a bullish reversal.
