XRP News Today: Kraken Court Ruling Gives XRP a Boost – Will SEC Appeal Ripple Case?

Kraken argued that the SEC could not prove an ongoing connection between crypto issuers and a Kraken customer and that these transactions therefore did not constitute investment contracts within the meaning of Howey.

Investment contracts, Howey and impact on the SEC

Judge William Orrick addressed the issue of investment treaties and cited US case law:

“Howey uses the terms 'contract, passage or scheme' … leaving open the possibility that the security is formed not in the form of a single neat, clear certificate but of a general scheme of profit-seeking activities. […] The principle is widely accepted: investment treaties are not limited to actual contracts.”

Crypto lawyer James Murphy, known as MetaLawMan, commented on the ruling, saying:

“Interestingly, the judge explicitly agreed with Judge Torres' reasoning in the Ripple case on several points.”

Murphy concluded:

“My overall impression is that the judge believed that the SEC met the Howey requirements at this early stage, but he is not necessarily convinced that the SEC will ultimately be able to establish enough facts to show that these tokens were actually traded as investment contracts on Kraken.”

The Kraken case could create further uncertainty among investors as they consider the prospect of an SEC appeal of rulings in the Ripple case. Uncertainty could affect demand for XRP.

XRP Price Trends

Price action remains dependent on the SEC's appeal plans and ongoing activities. XRP could rise to $1.00 if the SEC decides against challenging the rulings in the Ripple cases. Conversely, in the event of an appeal, XRP could fall below $0.40.