XRP Price Rises – Will Ripple Win the Battle Against SEC?
Ripple, a Fintech company, is making significant strides in its legal battle with the US Securities and Exchange Commission. The XRP (world’s seventh-largest cryptocurrency) problem will soon be resolved, said CEO Brad Garlinghouse, who is optimistic about the case’s closing date.
XRP today continued a weeklong rally in the market that began after a judge ruled favorable to Ripple in an ongoing legal battle between Ripple and the SEC.
Judge Analisa Torres said late last week that she would authorize the release of certain documents related to the dispute, which has been going on for over a year and over how the XRP cryptocurrency was sold.
SEC vs Ripple
A lawsuit filed nearly two years ago could determine the fate of Ripple.
The SEC filed a lawsuit against Ripple and two of its executives on December 22, 2020. They allegedly traded $1.3 billion of their cryptocurrency XRP as security without informing the SEC.
They point to Ripple’s funding and claim that the company’s platform is not decentralized. Ripple has since argued that the SEC’s decision is biased.
In a civil suit filed in late December, the SEC claimed that XRP is a security because it is necessary to support Ripple’s infrastructure, allowing merchants to conduct financial transactions. Due to the XRP sales, the administration of the platform was also well funded.
Total XRP Market Cap at $40.671 Billion in Daily Chart | Source: TradingView.com
Related literature | The SEC is filing an attack on Ripple’s defenses. Could it drown XRP?
SEC requirements require securities to be registered with the SEC and certain financial information to be disclosed. Its purpose is to prevent fraud and protect the interests of investors.
In deciding whether a virtual currency is a security, the committee uses the “Howey test,” based on the 1946 Supreme Court ruling in SEC v. WJ Howey Co. The criteria are that if an asset is sold with the prospect of benefit from the labor of others, it qualifies as a security. The SEC’s current definition of XRP would pass the Howey test in their case.
As of now, each side is currently still gathering evidence to support their individual claims.
What to expect from Ripple?
As news of the case spreads, XRP is gaining popularity. As investors process the news, the currency is up 18% and is trading at around 80 cents. Trading volume is also increasing, with more than $3.4 billion worth of XRP switching hands on Tuesday, up nearly 250% from the previous day.
Investors are pretty excited about Ripple’s price potential. However, how high can XRP go? What is the limit on the value of XRP?
To find out what the experts think, let’s take a look at some XRP price predictions:
Ripple – lawsuit or no lawsuit – is expected to cross the $1 threshold this year. According to CoinPriceForecast, XRP will be worth $1.07 by the end of the year. A similar forecast is made by Digitalcoin, which predicts a price of $1.09 for XRP by the end of 2022.
Related literature | XRP Builds Momentum With 7% Increase As Ripple Launches New ODL Partnership
Wallet Investor is slightly more optimistic about 12-month XRP. According to the website, the currency is expected to be worth $1.23 in February 2023.
Meanwhile, Gov Capital’s one-year projection is similar, with XRP expected to trade at $1.29 in February of next year.
Image from CoinPedia, chart from TradingView.com