In recent months, there have been significant legal developments surrounding the cryptocurrency XRP and its parent company, Ripple. These developments have the potential to greatly impact the price of XRP, with both positive and negative implications. This article will analyze the various factors at play and assess the potential outcomes for XRP investors.
The recent approval given to the US Securities and Exchange Commission (SEC) to file an interlocutory appeal against Judge Analisa Torres’ ruling has raised questions about the future of XRP. However, it is essential to note that this approval does not guarantee success for the SEC’s appeal. As former SEC official Marc Fogel stated, the requirements for an interlocutory appeal are “hard to meet,” implying that the odds may not be in the SEC’s favor.
If the court denies the SEC’s appeal, XRP could see a resurgence similar to what occurred after Judge Torres’ initial ruling. During that time, XRP’s market cap rose significantly, and it briefly overtook Binance’s BNB to become the fourth-largest cryptocurrency. While XRP has since dropped back to fifth place, the denial of the SEC’s appeal could reignite investor optimism and result in further price gains for XRP.
Another factor that could potentially drive an upward trend for XRP is the possibility of a settlement between Ripple and the SEC. Pro-XRP legal expert John Deaton has suggested that a settlement could occur this year if Judge Failla grants Coinbase’s motion to dismiss the SEC’s lawsuit against it. This outcome would likely align with Judge Torres’ ruling that programmatic sales do not constitute investment contracts and tokens bought through exchanges cannot be labeled as such.
If this legal precedent is set, it could significantly weaken the SEC’s position and force them into a settlement. A settlement between Ripple and the SEC would be seen as a major victory for Ripple and could restore investor confidence in the XRP ecosystem. This restored confidence could lead to an increase in the price of XRP.
The recent revelations and potential future disclosures regarding the ETH Gate scandal could also influence the SEC’s willingness to settle with Ripple. To avoid credibility damage, the SEC might choose to propose a settlement with Ripple rather than taking the case to trial. Such a settlement, even if not made public, would be considered a significant win for Ripple and could boost investor confidence, potentially resulting in a price increase for XRP.
Despite the ongoing legal battle with the SEC, Ripple has continued to grow and expand its business globally. In fact, Ripple’s President, Monica Lang, has stated that the court case has helped them expand not only in the US but also on a global scale. The clarity provided by Judge Torres’ ruling has allowed Ripple to plan for the future, knowing that XRP is not considered a security.
This newfound clarity has also enabled Ripple to consider partnerships with US financial firms to adopt Ripple’s On-Demand Liquidity (ODL) product. This product facilitates cross-border transactions and could act as a bullish signal for the XRP community. While Ripple has achieved remarkable success in Asia, breaking into the American market remains a challenge. If Ripple can secure partnerships with US financial firms, it would demonstrate significant progress and likely attract more investors, potentially leading to an increase in XRP’s price.
Adding to the speculation and excitement surrounding Ripple is the possibility of the company going public. Ripple’s upcoming event on September 29, dubbed the “proper victory party,” has fueled rumors of an initial public offering (IPO) announcement. Such news would undoubtedly generate significant buzz and interest in the company. The price of XRP could benefit from this announcement as investors evaluate the potential value of investing in a publicly traded Ripple.
The legal developments surrounding XRP and Ripple have the potential to significantly impact the price of XRP. While the outcome of the SEC’s appeal and the possibility of a settlement remain uncertain, they both hold the potential to reignite investor optimism and lead to price increases for XRP. Additionally, Ripple’s resilience, global expansion, and a potential IPO announcement further contribute to the positive outlook for XRP. However, investors should remain cautious and monitor these developments closely, as the cryptocurrency market is highly volatile and subject to unexpected fluctuations.