The SEC’s lawsuit against Ripple continues to impact XRP’s price and investor sentiment as the crypto community awaits a final ruling and market clarity.
In recent days, there have been new developments in the SEC-Ripple lawsuit. The fintech company and the SEC’s joint motion for an indicative ruling has been denied by Judge Analisa Torres.
The objective of the motion was to reduce the sanction to $50 million as part of the settlement. Judge Torres stated that Ripple should be exempt from the court’s permanent injunction due to the March settlement.
According to X user “Vet,” an XRPL dUNL validator, the lawsuit currently pertains exclusively to the fintech company and is not associated with XRP.
Will XRP experience a surge in response to the recent revelations?
The SEC-Ripple lawsuit was one of the most significant impediments to the price of XRP during the 2021 rally. The absence of clarity substantially undermined investor confidence.
Despite Ripple’s involvement in the litigation, the asset could experience a rally if market conditions are favorable and XRP is no longer a subject of the ongoing lawsuit.
The beginning of the year has been quite favorable for XRP. The asset surpassed the $3 threshold in January for the first time in seven years. The fintech company’s partial victory in the SEC lawsuit was likely the cause of the rally.
Additionally, XRP has submitted a few spot ETF applications to the SEC. The financial watchdog will likely sanction at least one XRP ETF this year.
Paul Atkins, a candidate who advocates for cryptocurrency, is chairman of the Securities and Exchange Commission (SEC). Numerous individuals anticipate that Atkins’ leadership will result in more permissive regulations.
Over the past few years, Ripple has experienced a significant adoption trajectory. The company has partnered with banks worldwide to implement the XRP Ledger for cross-border payments.
A similar pattern may emerge in the United States due to increased transparency from the SEC.
The extent to which XRP endures the current tempest remains to be determined. XRP can potentially regain the $3 mark shortly if conditions improve.
