XRP Gains As Ripple CLO Asks SEC For Position On Crypto Asset Securities, Regulator Apologizes For Confusion

• Ripple Chief Legal Officer Stuart Alderoty comments on the SEC’s definition of crypto asset securities.
• SEC faces criticism for referring to crypto tokens as securities and apologizes for confusion in Binance lawsuit footnotes.
• Alderoty highlights inconsistencies in the SEC’s regulatory approach to the crypto industry in 2017 and 2024, influencing the Ripple process.
• XRP is gaining over 1% on Friday, trading at $0.5695 at the time of writing.

XRP posted gains for a second straight day on Friday, extending Thursday’s rally, as Ripple’s Chief Legal Officer (CLO) Stuart Alderoty and Coinbase’s CLO Paul Grewal criticized the US Securities and Exchange Commission’s (SEC ) regarding the use of the term “crypto asset. securities.”

The regulator clarified its use of the term “crypto-asset securities” (which has no legal basis for Alderoty) and apologized for the confusion caused by a footnote amendment in the SEC vs. Binance.

Daily market moves: Ripple, Coinbase CLO regulatory slam for misreferring to crypto tokens as securities

• Crypto legal experts and CLOs of several exchanges and firms like Ripple and Coinbase have criticized the SEC’s use of the term “crypto-asset securities” in its lawsuits.

• Cryptocurrency market participants are closely watching the SEC’s next steps, as Ripple CLO has previously stated that regulators’ use of the term may mislead judges in crypto lawsuits and “has no basis in law.” The term “crypto-assets” implies that crypto-tokens are inherently securities.

• The SEC clarified its use of the term and said it “regrets any confusion” caused by its use by changing footnotes in its lawsuit against Binance.
• SEC filings from 2017 and 2024, seven years apart, are contradictory, according to Stuart Alderoty. Ripple’s CLO points out in a tweet that the SEC admits that the term “cryptoactive security” is not real. Alderoty believes the regulator likely used the term to demonstrate that the “crypto asset security” is an investment contract and the SEC needed evidence of “contracts, expectations and understandings.”

• The SEC’s definition of securities and how it applies to crypto is important to traders because it is considered when determining whether a crypto token is a “security.” XRP gained legal clarity as a non-security when Judge Torres ruled that the altcoin is not an investment contract when traded on secondary markets or exchanges.
• Another market maker likely to influence XRP’s price is Grayscale’s announcement on Thursday of an investment trust for the asset. The influx of institutional capital could drive adoption and demand for the XRP Ledger’s native asset, potentially leading to gains.

Technical Analysis: XRP could rise 9% and target $0.6217

Ripple has been in a downtrend since its July 2023 peak of $0.9380. Since then, the altcoin hit a low of $0.3823 in July 2024. XRP recovered somewhat after that, but in recent months it has traded mostly sideways, in a range between $0.6586 and $0.4319.

XRP is trading at $0.5695 on Friday and could gain 9% if it reaches $0.6217, which aligns with the upper bound of the fair value gap (FVG) on the XRP/USDT daily chart.

The MACD (Moving Average Convergence Divergence) indicator shows green histogram bars above the neutral line, suggesting underlying positive momentum in XRP.

XRP/USDT Daily Chart

If the price of the altcoin falls, it could find support in FVG between $0.5337 and $0.5428. These levels acted as support in August and September.