Following a $125 million fine, the struggle between Ripple and the SEC is nearing its conclusion. This pivotal process has been ongoing since the end of 2020, impacting all altcoins significantly.
Current Status of the Ripple Case
The SEC contends that Ripple’s issuance of the XRP Coin constitutes an unregistered security/investment contract. Looking at recent rulings in other cases, such as that of eToro, no asset has been acknowledged as non-security, except for Bitcoin, Ethereum, and Bitcoin Cash. The lawsuit that began at the end of 2020 led many U.S.-based exchanges to quickly delist XRP Coin, resulting in a 50% drop in its price. As a result, the SEC’s arbitrary labeling of assets as securities, including Coin and many other cryptocurrencies, has become widely disregarded. For instance, Coinbase continues to list assets likely viewed as securities by the SEC. The legal battle between Ripple and the SEC stands as the largest legal conflict that the SEC has pursued as an institution. Other similar cases, such as that involving Telegram, have been resolved much more swiftly. Previous assessments noted that the Judge confirmed that institutional sales constituted securities, which led to Ripple’s $125 million fine.
Appeal and XRP Coin
However, the SEC remains unsatisfied with the outcome. It is expected to assess the appeal process that will conclude in October 2024. Ripple has set aside the $125 million fine in escrow, preparing for the potential appeal. The critical date ahead is October 7, and it would not be surprising to see increased volatility in XRP Coin’s price as this date approaches. If the SEC does not appeal, Ripple officials anticipate relief by October 7, marking the process as complete. Nevertheless, if an appeal occurs, it could lead to a short-term decline and prolong the proceedings significantly.
Conclusion
Regardless of the outcome, Ripple is now seeing light at the end of the tunnel. Moving forward, the expansion of XRP Coin’s use cases and additional measures will likely enhance the value of this altcoin. However, the continuously rising circulation supply makes reaching $3 prices somewhat implausible.
The final stages of the battle between Ripple and the SEC promise to be decisive for the future of XRP and other cryptocurrencies under regulatory scrutiny.
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