When Ripple first released XRP in 2012, the boasted improvements on Bitcoin caused a stir in the crypto space, and XRP was considered by many to be a better technological choice for global adoption. Major banking institutions such as American Express, National Australia Bank, First Gulf Bank, Canadian Imperial Bank of Commerce, and UBS already use the XRP payment system, to name just a few. Transactions are confirmed within seconds and generally occur at very low costs, making XRP a solid option for universal use.
When the SEC targeted Ripple with a questionable lawsuit in 2020, world media painted a bearish forecast for XRP.
Since then, XRP has been stuck in a narrow range below $1, despite smashing every accusation that comes their way. Those still holding XRP believe a light at the end of the tunnel is in sight. Is it finally time for XRP to rise?
SEC Lawsuit against Ripple
The Ripple lawsuit is one of the most important legal battles in the cryptocurrency space. It could determine the fate of the world's seventh-largest digital asset and its issuer, Ripple Labs Inc. The U.S. Securities and Exchange Commission (SEC) filed the lawsuit in December 2020, alleging that Ripple sold XRP as an unregistered security, therefore violating federal securities laws. Ripple has denied these allegations and argued that XRP is not a security, but a decentralized currency that is used for cross-border payments.
Ripple has sought to obtain internal documents related to former SEC Director Bill Hinman. The belief is that the unredacted documents can prove the SEC did not provide clear guidance on the status of cryptocurrencies from the very start, making the lawsuit invalid. So far, the SEC has resisted disclosing the documents, arguing that such information is privileged and not relevant to the case. The SEC also filed a motion to seal documents from public view, claiming they contain confidential information that could harm the agency's internal decision-making process.
Despite the SEC’s power and influence, U.S. District Judge Analisa Torres denied the SEC's motion to seal the documents last week, ruling that the public interest in accessing them outweighs the SEC's interest in keeping them secret. Judge Torres stated that “sealing the documents would not preserve openness and candor within the agency.”
The decision is seen as a win for Ripple and its supporters, who have been calling for more transparency and accountability from the SEC since the lawsuit began. Ripple's CEO Brad Garlinghouse tweeted that it was "another win for transparency" and that unredacted Hinman emails would be "publicly available soon."
If those emails serve to end the lawsuit battle, the natural assumption is that XRP will rocket following a victory announcement. For now, the outcome of the lawsuit remains uncertain and continues to suppress the price of XRP in the market. Some analysts and investors are optimistic about XRP, while others are more cautious and warn that XRP could face more volatility and downside risk, even more so if Ripple loses against the SEC or the lawsuit gets prolonged.
The XRP lawsuit is a complex case that could have significant implications for the future of the entire cryptocurrency industry. The latest court ruling denying the SEC's motion to seal documents related to Hinman's speech is a positive development for Ripple and its supporters, but it does not guarantee a favorable outcome for them.
Interestingly, the SEC is deep in the loop regarding the coming FedNow centralized crypto dollar. How could the SEC endorse the crypto dollar, but then reject XRP? Keep a close eye on the Fed’s central bank digital currency (CBDC). The release may also mark the overall win for Ripple. For now, there’s a lot we don’t know, which makes XRP an uncertain asset in uncertain times.
Consider installing the Exness Trade app on your smartphone to get breaking news and real-time XRP price notifications wherever you are. Crypto price actions are known to be rapid and significant when they happen, so keep a close eye on XRP and the SEC case. Make sure your trading account is fully activated for when the Ripple lawsuit is concluded. Volatility will be significant, making exciting trading conditions for both day traders and long-term investors.