The ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) is arguably XRP’s most prominent hurdle. The digital asset is closely associated with Ripple, and this legal battle has impacted its price negatively since it began in December 2020.
With the case currently in its remedies phase, both parties and the wider cryptocurrency community are on edge, anticipating a final ruling that could shape XRP’s future significantly.
The Legal Background
The SEC alleged that Ripple conducted an unregistered securities offering by selling XRP. The central contention on whether XRP should be classified as a security, subject to specific regulatory requirements, has been resolved, as a crucial ruling from July 2023 determined that non-institutional XRP sales were not securities offerings.
However, institutional sales fall under the security classification, and both parties are trying to determine the appropriate penalty for Ripple’s violation of securities laws. Although XRP has legal clarity, investors are still uncertain as the lawsuit can go in any direction.
When XRP Would Surpass $100
Within the XRP community and broader crypto sphere, there is a prevailing optimism that Ripple will prevail in the lawsuit.
Proponents of XRP, such as XRP Avenger, a prominent crypto promoter and NFT artist, speculate that a favorable ruling could cause a significant increase in XRP’s value, potentially pushing it to $100 or beyond.
This sentiment is echoed by many analysts and investors who believe that resolving the legal issues will remove a substantial barrier to XRP’s growth.
XRP Avenger tweeted, “I feel XRP has to win the lawsuit before the BIG PUMP happens. I bet we see XRP in $100 after lawsuit ends soon.”
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However, one community member asked a crucial question, “So if the outcome of this lawsuit is not good for $XRP what happens next?” Although many people are confident that Ripple will win, an unfavorable outcome could have dire consequences, potentially dampening investor sentiment and limiting XRP’s adoption and marketability in the long run.
Interestingly, a former Ripple executive acknowledged the significance of the lawsuit’s outcome. The ex-Ripple director recently expressed the belief that while XRP has the potential for a substantial surge post-lawsuit, it may struggle to maintain momentum if the court rules against Ripple. This belief shows the precarious nature of XRP’s position in the crypto landscape.
As the SEC lawsuit against Ripple nears its conclusion, the stakes for XRP have never been higher. Both sides await the judge’s decision with the future of XRP potentially hanging in the balance.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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