The long-running legal battle between Ripple(XRP) Labs and the SEC appears to be nearing its conclusion. After over three years of arguments, Judge Analisa Torres is reviewing motions, including Ripple’s recent request to seal documents related to potential remedies.
However, a cloud of uncertainty hangs over Ripple due to its significant XRP holdings. The SEC argues these large sales constitute unregistered security offerings. This argument gained traction when the recently vetoed SAB21 bill almost classified XRP as a security due to Ripple’s holdings exceeding 20% of the total supply.
This potential classification underlines the broader implications of the lawsuit. A Ripple victory could establish clearer guidelines for crypto assets, while a loss could have a chilling effect on the entire industry. Recent legal wins for crypto companies, including the SEC’s settlement with Terraform Labs, offer some hope for Ripple. Additionally, a potential appeal to the 2nd Circuit Court could provide much-needed clarity on the regulatory status of cryptocurrencies.
Despite these positive developments, XRP’s price continues to struggle. While Messari’s report acknowledges XRP’s strong recent performance, its current value of $0.52 is far from its all-time highs. Technically, a failure to hold this support level could see XRP drop to $0.32.
This potential decline reflects the volatility surrounding XRP. The lawsuit’s outcome and the broader regulatory landscape will significantly impact XRP’s price and position in the crypto market. The coming months will be crucial for Ripple and XRP, with the potential to either solidify its position or trigger a price correction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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