Cryptocurrency

SEC vs. Ripple: Huge win for crypto

In the latest episode of The Market Report, Cointelegraph analyst and writer Marcel Pechman discusses Ripple’s partial victory against the Securities and Exchange Commission and its impact on the crypto market. Although people traded based on emotion after headlines popped out, the next day, as investors could process what happened, the altcoins gave away half of the gains.

On July 13, the United States District Court for the Southern District of New York ruled that Ripple’s XRP (XRP) token is not a security — but only for programmatic sales on digital asset exchanges. The question of sales to institutional investors remains an open case.

Moreover, according to a former chair of the Commodity Futures Trading Commission, Timothy Massad, the SEC could appeal the judge’s decision. Therefore, this initial win for Ripple could still be overturned.

According to Pechman, the XRP decision was a non-event in price terms. The spot Bitcoin (BTC) exchange-traded fund impact is likely the main trigger for the next 18 months, even though initially, altcoins tend to underperform relative to BTC.

Lastly, Pechman analyzes how macroeconomics and regulatory concerns might drive Bitcoin’s price to $29,000 — starting with the Bitcoin futures premium stagnating around a neutral 7% level for the past week. Next, the show covers the Tether (USDT) premium in China, which reached its lowest level in over six months, indicating excessive demand to exit crypto markets. 

Moving to fundamental analysis, Pechman highlights U.S. Securities and Exchange Commission’s ongoing cases against crypto exchanges Binance and Coinbase, and how the macroeconomic environment worsened after China’s weaker-than-expected gross domestic product growth. He also discusses the odds of the U.S. Federal Reserve further increasing interest rates in 2023.

Get all this and more in the latest episode of The Market Report exclusively on the new Cointelegraph Markets & Research YouTube channel.

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