The US Securities and Exchange Commission (SEC) is not letting Ripple use the recent court win by Binance to boost its argument that XRP is not a security.
On July 2, Binance announced that US Judge Amy Berman Jackson had ruled that BNB’s purchase in the secondary market did not constitute securities.
Judge Jackson upheld Judge Analisa Torres’s ruling last year that crypto purchases in the secondary market did not pass the Howey test and did not meet the qualifications to be classified as securities.
Ripple Labs filed a Notice of Supplemental Authority with Judge Torres, arguing that the legal win by Binance against the SEC demonstrated that the regulator used unclear and inconsistent methods. In its filing, Ripple noted that the US securities regulator needed to come up with formal rulemaking.
However, the SEC has fought back, saying that Ripple only used one observation in the 90-page ruling to argue for a new position in the lawsuit. It noted that Ripple failed to acknowledge the other violations the court found in the Binance case. Therefore, Ripple might still have to settle the $2 billion fine with the SEC if the case closes.
XRP did not react well to the news. The 7th-largest cryptocurrency by market capitalization is down 9% in the last 24 hours, trading at $0.41 at the time of writing.
The pressure on XRP is not just because of the SEC’s decision. The bearish pressure in the market has also caused prices to drop further. The recent drop is now allowing buyers to accumulate at low prices.
Time to Buy the XRP Dip?
As reported earlier by ZyCrypto, XRP is well positioned for a rally to $6 amid the recent developments on the Ripple vs. SEC case. The recent price drop presents an opportunity for traders to buy the dip as the case between Ripple and the SEC nears a close.
XRP’s Relative Strength Index (RSI) has crossed above 50 despite the declining prices. This indicates buyers are taking advantage of the recent price drop to accumulate more.
XRP lawyer Bill Morgan is among the ones buying the price dip. In a recent post on X, he stated that he had bought more XRP at the $0.40 level.
Optimism around XRP’s ability to bounce has also grown since Ripple attorney Fred Rispoli noted that the case could end in July. If the court rules in Ripple’s favor, it will be a watershed moment for the Ripple community, which could see prices rally by 100%.
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