The future of XRP, the digital asset associated with Ripple, is the subject of much speculation and debate in the cryptocurrency community. While some analysts have expressed doubts about its potential for a significant price surge, there are several macro and micro factors that could have a positive impact on the token’s value. Recent developments, including Judge Analisa Torres’ ruling in favor of Ripple and the possibility of a settlement with the U.S. Securities and Exchange Commission (SEC), have the potential to reshape the trajectory of XRP.
On August 17, Judge Analisa Torres granted the SEC approval to file a motion seeking an interlocutory appeal against her ruling at the Court of Appeals. However, it’s important to note that this was not an approval of the SEC’s appeal itself. The XRP community is eagerly awaiting the court’s decision on whether to accept or reject the appeal based on the grounds presented. According to Marc Fogel, a former SEC official, the specific requirements for an interlocutory appeal are difficult to meet, making the odds seemingly against the SEC. As a result, it is expected that the court will deny the SEC’s request. If this happens, XRP may experience a resurgence similar to what occurred after Judge Torres’ initial ruling. Following her decision, XRP’s market cap surged significantly, briefly surpassing Binance’s BNB to become the fourth-largest cryptocurrency by market cap.
Another factor that could contribute to an upward trend for XRP is the possibility of a settlement between Ripple and the SEC. The crypto community has been speculating on the feasibility of such a settlement and the factors that could prompt it. An influential pro-XRP legal expert, John Deaton, has suggested that a settlement could occur this year if Judge Failla grants Coinbase’s motion to dismiss the SEC’s lawsuit against it. In that scenario, the Judge would likely adopt Judge Torres’ ruling that programmatic sales do not constitute investment contracts and that crypto tokens purchased through exchanges cannot be classified as such. This could potentially force the SEC into a settlement, particularly if its interlocutory appeal is rejected. The SEC’s willingness to settle would be viewed as a major victory for Ripple and could restore investor confidence in the ecosystem, leading to a rise in XRP’s price.
One intriguing factor that could influence the SEC’s decision to settle is the ongoing revelations regarding the “ETH Gate.” As a means of damage control, the Commission may propose a settlement with Ripple rather than taking the case to trial and risking damage to its credibility. The SEC proposing a settlement, even if it is not made public, would be considered a significant win for Ripple. It has the potential to restore investors’ faith in the Ripple ecosystem, which could lead to an increase in the price of XRP.
Ripple has demonstrated resilience throughout its prolonged battle with the SEC. In fact, Monica Lang, the company’s President, recently stated that the court case following Judge Torres’ ruling has actually facilitated the expansion of Ripple’s business, both in the United States and globally. The ruling provided much-needed clarity amidst regulatory uncertainty, enabling Ripple to establish a solid framework for future operations. Additionally, Ripple’s general counsel, Stuart Alderoty, revealed in an interview with CNBC that the company may begin discussions with U.S. financial firms regarding the adoption of Ripple’s On-Demand Liquidity (ODL) product. ODL has the potential to facilitate cross-border transactions efficiently. If Ripple succeeds in fostering this kind of partnership, it would undoubtedly send a bullish signal to the XRP community and demonstrate the company’s progress in penetrating the American market.
Furthermore, rumors of Ripple going public have been circulating within the XRP community. The company is set to host a “proper victory party” on September 29 in New York, and many speculate that Ripple might unveil its plans for an initial public offering (IPO) at this event. Such an announcement would undoubtedly have a significant impact on market sentiment and generate increased interest in Ripple. A positive response to the IPO news could translate into a boost for XRP’s price.
While some analysts express doubts about XRP’s potential for a significant price surge, several macro and micro factors indicate a possible positive future for the digital asset. The outcome of the potential appeal by the SEC, the likelihood of a settlement between Ripple and the Commission, Ripple’s ongoing business expansion, and the possibility of an IPO announcement all contribute to the evolving narrative surrounding XRP. These factors, in combination or individually, have the potential to reshape XRP’s trajectory and restore investors’ confidence in its value.
Leave a Reply