The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), which started in late 2020, is approaching its decisive phase. This clash has significantly influenced the cryptocurrency market, despite Ripple paying a hefty $125 million fine.
Current Status of the Ripple Case
The SEC claims that Ripple’s issuance of XRP is an unregistered security offering. In light of verdicts in similar cases, no digital asset excluding Bitcoin, Ethereum, and Bitcoin Cash has been classified as a non-security. This legal dispute led many U.S.-based exchanges to quickly remove XRP, causing its price to plummet by 50%. Meanwhile, the SEC’s broad classification of several cryptocurrencies as securities has been met with skepticism, with platforms like Coinbase continuing to list these assets.
Impact of the Appeal on XRP
Despite the previous ruling, the SEC remains dissatisfied and is expected to pursue an appeal process, which will run until October 2024. Ripple has preemptively set aside the $125 million fine in anticipation of this potential appeal. The main focus is now on October 7, a date that could result in increased price volatility for XRP. If the SEC decides against appealing, Ripple executives expect that the legal saga may finally draw to a close.
Key Takeaways and Next Steps
Key takeaways from the Ripple-SEC conflict include: * Ripple’s fine totals $125 million, currently held in escrow. * U.S. exchanges delisted XRP, leading to a 50% price drop. * The potential appeal adds uncertainty to XRP’s future. * The SEC’s classification of crypto assets as securities is under scrutiny. With the conclusion of these proceedings in sight, Ripple is poised to move forward. The company is optimistic about extending XRP Coin’s applications, which could boost its market value. However, the increasing supply in circulation poses challenges for achieving higher price targets, such as reaching the $3 mark. As the legal dust settles, Ripple looks to chart a new course in the evolving crypto landscape.
With the legal proceedings nearing their end, Ripple is preparing for new advancements in the crypto industry.
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