Three Reasons Why the Final Ruling in Ripple SEC Lawsuit May Do Nothing for XRP Price


Three Reasons Why the Final Ruling in Ripple SEC Lawsuit May Do Nothing for XRP Price

  thecryptobasic.com 01 August 2024 16:59, UTC

While the XRP community is on high alert and awaiting Judge Analisa Torres’s final pronouncement on the Ripple lawsuit, it may fail to impact XRP.

The XRP Army anticipates that the end of the four-year suit will significantly boost the XRP market value. In mid-July, XRP saw a more than 50% price increase amid speculation that the SEC would hold a closed-door session with Ripple to discuss a settlement.

The price growth was further bolstered by statements from Ripple CEO Brad Garlinghouse, who said on live TV that the case was ending “very soon.”

Although nothing significant ultimately surfaced from last month’s closed-door meeting, XRP’s price was positively impacted. Proponents hope that once news of the lawsuit’s end emerges, XRP will begin an uptrend.

Meanwhile, not everyone in the XRP community is optimistic about the outcome. Some have even expressed apprehension.

Why Final Ruling May Do Nothing for XRP Price

In a recent post on X, community member Rachelle Renee highlighted key points behind why she believes the final announcement in the Ripple SEC case would not spark a significant bull run for XRP.

First, Renee pointed out an often overlooked fact in the awaited decision: it would detail Ripple’s punishment for violating federal securities laws.

Notably, last year, the firm was convicted of selling unregistered investments in XRP to institutions. Accordingly, the U.S. regulator has urged the judge to impose a fine of approximately $2 billion on Ripple for this violation.

Meanwhile, Ripple is pleading for a drastic reduction. The judge’s decision will determine the ultimate fine the company will pay.

Furthermore, Renee noted that a more XRP-specific ruling that should impact XRP’s value is the decision that the digital asset is not a security. This ruling was delivered last year, and although XRP initially rallied, it soon lost steam.

Renee emphasized that institutions only needed confirmation that it was legal to buy, hold, and use XRP. That confirmation has already been given. They do not need to hear whether Ripple will be punished for some early sales of XRP.

Based on these factors, she expressed that the end of the lawsuit would not significantly impact XRP beyond what has already occurred.

Meanwhile, she conceded that the news might spark a price gain, but it would not lead to a moonshot rally.

XRP Army Reacts

In response to this perspective, other community members emphasized that the lawsuit’s conclusion will pave the way for institutional adoption by major banks and global partnerships, as potential collaborators will recognize that Ripple is no longer under regulatory scrutiny.

Renee clarified that Ripple already possesses the regulatory clarity to pursue collaborations and XRP adoption. She noted that while significant announcements about adoption might emerge in the future, they are not directly tied to the end of the lawsuit.

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