The ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC) has garnered significant attention within the cryptocurrency community. While some analysts have expressed skepticism about XRP’s future prospects, there are several macro and micro factors that could potentially influence the price of the token.
Significance of Judge Analisa Torres’ Ruling
Judge Analisa Torres recently ruled in favor of Ripple, granting the SEC permission to file a motion for an interlocutory appeal at the Court of Appeals. However, it is important to note that this ruling does not signify approval of the SEC’s appeal. The XRP community eagerly awaits further developments, as the court has the power to accept or reject the appeal based on its grounds and requirements.
Former SEC official Marc Fogel has stated that the requirements for an interlocutory appeal are challenging to meet, suggesting that the odds are against the SEC. Consequently, it is expected that the court will deny the SEC’s request for an interlocutory appeal. If this happens, XRP may experience price gains similar to those seen after Judge Torres’ initial ruling. During that period, XRP’s market cap rose significantly, temporarily surpassing Binance’s BNB to become the fourth-largest cryptocurrency by market cap.
Potential Settlement between Ripple and the SEC
Another factor that could positively impact XRP’s price is the possibility of a settlement between Ripple and the SEC. Experts in the crypto community have discussed this potential outcome and identified several factors that could prompt both parties to reach an agreement. Pro-XRP legal expert John Deaton has suggested that if Judge Failla grants Coinbase’s motion to dismiss the SEC’s lawsuit, a settlement could occur this year. In that scenario, the judge would likely adopt Judge Torres’ ruling, which states that programmatic sales and tokens bought through exchanges are not investment contracts. Consequently, it would become more established that the SEC lacks jurisdiction over token sales on exchanges.
An intriguing factor that could further compel the SEC to settle is the ongoing revelations surrounding the ETH Gate. To mitigate potential damage to its credibility, the Commission may propose a settlement with Ripple instead of proceeding to trial. Such a settlement, even if not made public, would be considered a significant victory for Ripple. It could restore investors’ confidence in the ecosystem and potentially lead to a price increase in the XRP token.
Despite the legal battle, Ripple has continued to make strides in expanding its business. Monica Lang, the company’s President, recently stated that the court case has actually helped them expand not only in the US but also globally. The ruling provided much-needed clarity during a time of regulatory uncertainty. With this clarity, Ripple can develop a solid framework for its future operations, especially considering Judge Torres’ ruling that XRP is not a security.
Potential Adoption of Ripple’s On-Demand Liquidity (ODL) Product
Following Judge Torres’ ruling, Ripple’s general counsel Stuart Alderoty revealed in an interview with CNBC that the company may begin discussions with US financial firms about adopting Ripple’s On-Demand Liquidity (ODL) product. This product facilitates cross-border transactions and could significantly benefit the XRP community. While Ripple and XRP have achieved significant success in Asia, there is still work to be done to penetrate the American market. If Ripple succeeds in partnering with US financial firms, it could act as a bullish signal and demonstrate the company’s progress in America, thereby potentially influencing investor sentiment.
Moreover, speculation is rife within the XRP community about Ripple’s plans to go public. The company will be hosting a “proper victory party” on September 29 in New York, leading many to believe that Ripple might announce its intention to launch an initial public offering (IPO) at the event. Such an announcement would be significant and could generate more excitement and interest in the company. Consequently, XRP’s price could potentially benefit from this positive news.
While there are some analysts who remain skeptical about XRP’s future, there are compelling factors that suggest a potential upward trend for the token. The outcome of the interlocutory appeal, the possibility of a settlement, Ripple’s resilience, the potential adoption of Ripple’s ODL product, and the anticipation of an IPO announcement all contribute to the narrative surrounding XRP’s future price trajectory. As with any investment, it is essential for individuals to conduct thorough research and exercise caution before making any financial decisions.
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