• XRP nears $5.85 as the crypto community eyes new mid-term targets.  
• SEC challenges Ripple’s ruling, calling XRP sales unregistered securities.  
• Legal experts critique the SEC’s case, boosting optimism for Ripple’s defense.

XRP’s price is on the move, with a short-term target of $5.85. Crypto enthusiasts are excited about its recent performance with the token continuing to defy expectations and prove early predictions right.

Analysts had initially predicted XRP would reach $0.66, then $2.80; and now, $5.85 has become a realistic short-term target. This bullish sentiment got a boost from U.S. Congressman Guy Reschenthaler’s recent XRP purchase.

XRP Gets Congressional Boost

According to public disclosures, Reschenthaler bought up to $15,000 worth of XRP, signaling confidence in the token. This renewed interest suggests further growth in the mid-term.

This positive news comes as the U.S. Securities and Exchange Commission (SEC) is challenging Ripple Labs’ partial court victory. The SEC claims Ripple’s XRP sales violated Section 5 of the Securities Act of 1933. They argue these sales were unregistered securities offerings and that investors did not receive the necessary disclosures.

In the last-minute brief filed on 15 Jan, the regulator reiterates that Ripple’s XRP offerings violate securities laws, rekindling debates within the crypto community.

Related: Ripple Faces SEC Appeal: XRP’s $3 Breakout Defies Legal Pressure

The SEC’s Appeal Depicts a Battle for XRP’s Classification

Attorney Jeremy Hogan described SEC’s opening brief as “lackluster” and almost as if “the drafter knew he was wasting his time.” He noted that a significant position of the brief was devoted to repeating the trial court’s ruling. The core of the SEC’s argument, per Hogan, is that it does not have to prove that XRP purchasers were aware of Ripple’s statements about increasing XRP’s price.

Hogan was also critical of the SEC for not providing evidence that retail XRP purchasers knew about Ripple’s statements. This is despite the thousands of affidavits submitted by attorney John E. Deaton. Hogan suggested this appeal could backfire on the SEC.

Implications for XRP and the Crypto Market

Ripple’s ongoing battle also presents opportunities for broader industry implications. If the appellate court upholds the retail sales ruling, the SEC may face heightened burdens of proof in future cases. 

Related: Bitcoin Stalls as Ripple’s XRP Quietly Gains Institutional Ground

Additionally, Ripple could use the appeal to reaffirm its argument that “investment contracts require enforceable obligations”. This stance, many believe, could not only weaken the SEC’s case but also reshape the regulatory landscape for digital assets.