The ongoing legal clash between Ripple and the U.S. Securities and Exchange Commission (SEC) is approaching its decisive phase. Since its inception in late 2020, this lawsuit has exerted significant influence over the broader cryptocurrency market. Despite Ripple paying a hefty $125 million fine, the case isn’t yet entirely concluded, with an appeal process still looming on the horizon.
What Is the Current Status of the Ripple Case?
The SEC claims that Ripple’s issuance of XRP Coin is an unregistered security offering. In light of verdicts in similar cases, no digital asset excluding Bitcoin, Ethereum, and Bitcoin Cash has been classified as a non-security. This legal dispute led many U.S.-based exchanges to quickly remove XRP Coin, causing its price to plummet by 50%. Meanwhile, the SEC’s broad classification of several cryptocurrencies as securities has been met with skepticism, with platforms like Coinbase continuing to list these assets.
How Will the Appeal and XRP Coin Be Affected?
Despite the previous ruling, the SEC remains dissatisfied and is expected to pursue an appeal process, which will run until October 2024. Ripple has preemptively set aside the $125 million fine in anticipation of this potential appeal. The main focus is now on October 7, a date that could result in increased price volatility for XRP Coin. If the SEC decides against appealing, Ripple executives expect that the legal saga may finally draw to a close.
Key takeaways from the Ripple-SEC conflict include:
- Ripple’s fine totals $125 million, currently held in escrow.
- U.S. exchanges delisted XRP, leading to a 50% price drop.
- The potential appeal adds uncertainty to XRP’s future.
- The SEC’s classification of crypto assets as securities is under scrutiny.
With the conclusion of these proceedings in sight, Ripple is poised to move forward. The company is optimistic about extending XRP Coin’s applications, which could boost its market value. However, the increasing supply in circulation poses challenges for achieving higher price targets, such as reaching the $3 mark. As the legal dust settles, Ripple looks to chart a new course in the evolving crypto landscape.