A whirlwind week of negotiations and suspense has swept through the Ripple vs. SEC case, inching it closer to a potential resolution. However, XRP advocate Bill Morgan suggests that the SEC might prolong the process with appeals and injunctions, sparking speculation about the impact on XRP’s fate.
Let’s delve into what’s ahead for XRP in the days to come.
Roadblocks to Resolution
Bill Morgan highlights the SEC’s attempts to secure an injunction to pause Ripple’s On-Demand Liquidity (ODL) sales and its plan to appeal programmatic sales, signaling significant obstacles to reaching a settlement.
These actions suggest a prolonged legal dispute and potential challenges for both parties.
Understanding the Impact of Delays
The consequences of such delays could ripple through Ripple’s operations and the broader XRP market. Disruptions in Ripple’s business, particularly its ODL sales, could arise if the SEC successfully halts them. Such disruptions could also affect XRP’s price, currently hovering at around $0.50.
However, if a settlement is achieved, XRP supporters anticipate a surge in value, with Morgan eyeing a post-settlement valuation of $1. Presently, XRP has seen a 4.48% decrease, settling at $0.5011. Its trading volume has soared by 33.42% to $795.94 million within the past 24 hours. Nonetheless, it has dipped by nearly 7% in value over the week, with a monthly drop of around 20%, highlighting the current volatility and downward trend in XRP’s price.
What Next?
In the legal arena, Judge Sarah Netburn has granted the SEC an extension until April 29, 2024, to respond to Ripple’s opposition to the agency’s proposed civil penalties. Additionally, the SEC is preparing to file its opposition brief to Ripple’s Motion to Strike by April 29, with its reply brief to contest Ripple’s opposition brief due by May 6.
These filings hold the keys to the case’s outcome, with the SEC seeking a hefty $2 billion penalty and an injunction against Ripple. Nevertheless, the verdict is unlikely to sway the SEC’s resolve to appeal the ruling on Programmatic Sales of XRP.
Claims, Counterclaims, and Chaos!
On the opposing side, Ripple is advocating for a penalty capped at $10 million, disputing the SEC’s claims as exaggerated and lacking substantial evidence. The responses from both sides will be pivotal in determining whether a settlement is within reach in the Ripple vs. SEC saga.
Looking at the broader crypto landscape, other cases such as SEC v Coinbase and Consensys vs. SEC could influence the SEC’s strategies, as per Bill Morgan’s insights. Particularly, Consensys has filed a lawsuit against the SEC, challenging the classification of Ethereum as a security. A favorable outcome for Consensys could potentially affect the SEC’s approach to regulating cryptocurrencies and its appeal against the ruling on Programmatic Sales of XRP.
Will XRP see a price surge or a continued slump? Only time (and the courts) will tell. Keep an eye on this space for the latest updates.