Recent Developments in Ripple v. SEC Saga Suggest Lawsuit May End In Settlement.
Ripple (XRP) investors have waited patiently, hoping that the more than one-year lawsuit filed by the United States Securities and Exchange Commission (SEC) will come to an end in earnest.
As they continue to hold the cryptocurrency, they have seen its price move back and forth based on developments in each court sitting.
SEC Charges Ripple
According to reports, Ripple and two of its executives were charged in December 2020 by the SEC for conducting unregistered securities offerings in the United States.
However, the charges have been constantly refuted by Ripple, as the company believes that it did not breach the company’s securities laws.
With the case filed before a Federal Court, the SEC is poised to make an example of Ripple for breaching its laws, while the fintech company is not willing to succumb to pressure as it continues to throw everything it has to aid its defense.
SEC Not Feeling Optimistic
Since the lawsuit started last year, multiple developments have emerged, with the majority favoring Ripple. Per comments made by Hester Peirce, an SEC commissioner, morale at the agency about the lawsuit is low, as the SEC does not feel optimistic that it will win the lawsuit.
Knowing this, the SEC has continued to deploy delaying tactics to frustrate Ripple into negotiating a settlement in its favor.
However, Ripple is not looking to settle for less. The blockchain company hopes to use the Fair Notice Defense and Internal SEC documents to prove that XRP is not a security.
While the SEC fought relentlessly to protect its internal documents, like the 2018 William Hinman emails containing a draft of the former Director’s speech that Ethereum (ETH) is not a security, the agency was again ordered to make the documents available.
With things not going in the SEC’s favor, it is expected that the agency will be forced to negotiate a settlement in order to avoid further embarrassment.
If the SEC shows a commitment to reach a settlement, chances are, the agreement would favor Ripple.
XRP Will Surge Above $2 Upon Settlement
For starters, all U.S.-based cryptocurrency-related businesses that halted support for the cryptocurrency following the lawsuit would have no choice but to add XRP among their offerings.
Massive adoption of XRP will translate to a surge in the price of XRP to higher heights, with many analysts speculating that its value could surpass $2.
At press time, XRP is changing hands at around $0.72, down 78.9% from its all-time high (ATH) of $3.4.
The token’s value has suffered a significant dip mainly because of the argument on whether or not it is a security. Meanwhile, many financial experts are still optimistic that the case would end in a settlement in favor of Ripple, thus boosting XRP value.