Ripple’s ongoing court case with the SEC appears to be turning in their favour, prompting many speculators around the world to begin to once more accumulate – the XRP price could appreciate quite significantly in the coming years given the progress that Ripple has been making with their court cases.
The SEC fails to prove XRP is a security
The reason that Ripple was being taken to court by the SEC in the first place was because the SEC believed that the initial sale of XRP constituted an unregistered securities offering.
Ripple Labs, in response, have spent over $100m challenging the SEC’s claims, which has been hugely important – the case isn’t only important for Ripple and the price of XRP, but it is important for the crypto space more generally due to the precedents that will be set by the verdict.
At the moment, there is a large mismatch between how much money crypto companies spend on developing their products and services and how much money is spent on
Some analysts, such as the anonymous advocate of Monero, Crypt0_Bear, have made the case that the reason the SEC wishes to label anything other than Bitcoin as a security is due to the fact that the SEC has a large vested interest in Bitcoin succeeding over its competition.
The main reason that the SEC has been unable to demonstrably prove that XRP is a security is the fact that there are so many differences between traditional securities and cryptocurrencies. Firstly, holders of XRP are not entitled to any of the same rights that shareholders of Apple would be, for example.
Could the XRP price gain significantly from here?
The XRP price, largely as a result of the court case, did not perform as many may have hoped in the last cycle.
In fact, the price of XRP failed to break the ATHs that it set in 2018, when the project reached $3.40.
However, thanks to the growing regulatory clarity (the absence of which was heavily weighing the price down), it seems that the next bull market could once more resolve Ripple’s qualms and accelerate the price.
“Most ppl outside the United States don’t really care that the SEC is suing us.”
~@bgarlinghouse at DC Fintech 2022“No one gives a shit.”#XRPArmy #XRP pic.twitter.com/YIH1pzcDJw
— Cowboy.Crypto ☀️ (@cowboycrypto313) October 14, 2022
Moreover, the fact that Ripple is being used worldwide by companies and individuals on every content demonstrates the waning influence of the SEC on the price – even if the SEC does determine XRP to be a security, it won’t have that much impact for holders in other jurisdictions, who will continue to operate as they were beforehand.
Brad Garlinghouse made this clear in a recent talk in which he said “Most people outside the United States don’t really care that the SEC is suing us … no one gives a shit”.
Despite the bear market, and despite the court case, Ripple has continued to onboard more companies to their ecosystem and has continued to sign significant partnerships around the world.
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