A recent court decision in the SEC v. Ripple case has drawn attention to the potential for a supply shock of XRP in the marketplace. This significant update pertains to the supply situation of the digital asset.
Judge Denies Ripple-SEC Motion
On June 26, Judge Analisa Torres denied a joint request from the SEC and Ripple aimed at dissolving a prior court order and reducing Ripple's financial penalties. This ruling maintains the existing injunction which prohibits Ripple from violating securities laws and limits access to XRP held in escrow.
Expert Opinion on Supply Shock Potential
Jake Claver, founder of QFOP, expressed that the ongoing legal battle creates conditions for a significant XRP supply shock. He emphasizes that Ripple's constraints are reducing the available liquidity in the asset market.
XRP Exchange Balances Decrease
Data analysis indicates that XRP balances on major centralized exchanges have been declining over the past 12 months. Long-term holders and private wallets are absorbing available liquidity, while Ripple's legal constraints prevent new supply from entering the market from escrow.
Judge Torres' ruling does not end the case but halts key procedures that could lead to a resolution of the legal issues. Expectations are building, and market observers await a conclusion that could potentially trigger sharp demand for XRP.
