The value of XRP, which is a digital currency owned by Ripple, is expected to rise because people believe there is a likelihood that they will win a vital legal matter against SEC. SEC claims that XRP does not follow the stipulated investment regulations and should have been registered, while XRP disputes that saying it is not an investment firm.
The court verdict, expected to be pronounced soon, will affect the crypto industry and other digital tokens. SEC enforces government regulations regarding the selling and buying of investments. In 2020, SEC took legal action against Ripple Labs for failing to adhere to the rules when selling XRP.
Ripple violated the law by failing to record the $1.3 billion value of XRP back in 2013 with SEC. The SEC claims that XRP is considered a security per the Howey test. The Howey test is a legal assessment that SEC uses to ascertain whether a business deal is an investment agreement. Ripple disagrees, saying XRP is not an investment like that and that SEC is too strict. They are still arguing, and the ruling will impact the wider virtual currency industry.
The Final Stretch
It appears that Rippple’s ongoing dispute with the SEC is soon ending. On December 2nd, Ripple and its Chief Executive Officer, Brad Garlinghouse, completed their last statement to the court.
The price of Ripple’s digital currency XRP is expected to surge as the pronouncement favoring the financial technology company is highly likely.
By market value of equity, XRP is the sixth-largest digital token. The value of XRP at the moment is nearly $0.45. Ripple will likely emerge victorious as well-off investors have recently acquired substantial XRP.
Possible Results and Consequences of the Ripple vs. SEC Lawsuit
A Ripple triumph will ensure less confusion and more certainty in the market; hence the business will grow. In addition, more people will use the payment solutions resulting in the firm’s growth.
During the lawsuit, the reputation of Ripple was stained. When it wins, it will reclaim it, attracting more partnerships and investments in the entity.
Other digital currencies will likely profit since the case will be an example for other fintech companies facing similar regulatory issues. In addition, more people will likely start using cryptos as the regulations and rules might be adjusted to be friendly. XRP could become worthier if Ripple emerges victorious, which would explain its legal position.
The cryptocurrency regulations could become more transparent with the Ripple case as they have been marked with questions. If XRP is not regarded as a security, other digital currencies could follow suit and create a more promising regulatory atmosphere.
If Ripple, a top virtual currency firm, wins the legal fight against the SEC, it could significantly impact the whole crypto industry. A ruling in favor of Ripple will bring clarity on regulations and could boost investors’ confidence in cryptocurrencies.
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