Ripple vs SEC Lawsuit Approaches Conclusion Could XRP Price Plummet

Key Points
– The legal battle between Ripple and the SEC is reaching its conclusion, with disagreements over XRP sales as securities.
– A vetoed bill could have labeled XRP as a security due to Ripple’s significant XRP holdings.
– XRP’s price has dropped from its highs and may fall further without support.

The Ripple vs. SEC lawsuit is drawing to a close after more than three years of courtroom drama. Judge Analisa Torres is carefully considering various motions, including Ripple’s recent response letter in support of sealing documents related to the SEC’s decisions.

One major sticking point in the case is Ripple’s substantial XRP holdings, with the SEC arguing that the company’s monthly sales are akin to securities transactions. The Ripple community narrowly dodged a setback when President Joe Biden vetoed the SAB21 bill, which could have had serious repercussions for the cryptocurrency sector.

The SAB21 bill proposed classifying crypto projects with a single investor holding more than 20% of the total supply as securities rather than commodities, potentially impacting Ripple and similar ventures. Despite recent setbacks, the US SEC has faced challenges in other crypto cases, including a recent settlement with Terraform Labs and Do Kwon, which was seen as a positive development for the industry.

A prominent Web3 and crypto lawyer, MetaLawMan, suggested that either the Ripple or Coinbase case is likely to be the first to reach the 2nd Circuit Court of Appeals to address the legal status of crypto assets, with significant implications for the market as a whole.

In terms of market performance, XRP, supported by Ripple, is gradually losing its prominence among crypto projects, according to Messari’s report. With a market valuation of around $55 billion and daily trading volume of $1.2 billion, XRP is currently trading at approximately $0.52. However, if buyers fail to defend the current support level, the cryptocurrency could plummet to $0.32, indicating significant volatility and uncertainty ahead.

As the Ripple vs. SEC case nears its conclusion, the outcome remains uncertain. What are your predictions for this high-stakes legal battle?