The next few trading sessions will be significant for Ripple’s price, as its case with U.S. Securities and Exchange Commission(SEC) concludes. This is after both entities agree that the judge has enough information to make a ruling without the case moving forward to trial.
According to reports, SEC and Ripple filed a motion for summary judgement by the federal judge overseeing their trial to either dismiss or give a ruling. The SEC sued Ripple Labs, its CEO Brad Garlinghouse and Chairman Chris Larsen in December 2020 on allegations that their cryptocurrency XRP was operating as security. Therefore, the $1.3 billion the company had raised by selling XRP was a result of unregistered securities, which is illegal in the U.S.
However, since the case started, Ripple has maintained that XRP did not meet the tenets of qualifying as security. Therefore, sales done since the project, and its cryptocurrency was launched have been legal.
For more than two years, the two entities have fought it out in court, filing multiple discovery motions without litigating the underlying issue. This has dragged the case for years, and following the motion filed this week, it is clear that both SEC and Ripple Labs want the case to conclude as fast as possible.
Despite yesterday’s drop and today’s continuation of the bearish trend, the ruling of the case is likely to impact the Ripple price for trading sessions to come. There is a high likelihood that a positive ruling will see XRP prices surging and approaching the $1 price level.
There is even a high likelihood that, should the ruling go in favour of Ripple, prices might trade above the $1 price level in the coming sessions. However, for that, we will have to wait until the federal judge Analisa Torres determines if she will offer a judgement rather than going to trial. For now, I expect the Ripple price to continue trading downwards, with a likelihood of prices hitting trading below the $0.33 price level.
This post was last modified on %s = human-readable time difference 13:34