- Ripple and the U.S. SEC might see a resolution ruling this week.
- XRP price could record a decisive move depending on the ruling.
This week, the final judgment of the ongoing legal battle between the US Securities and Exchange Commission (SEC) is expected. This expectation comes after the dismissal of potential settlement rumors.
What the Final Judgment Might Look Like
The nearly four-year legal case between Ripple and the SEC could be resolved this week, as Judge Analisa Torres is mulling a judgment. Torres has a critical decision to determine penalties and injunctions as related to the case. In DEC 2020, the SEC accused Ripple of selling XRP as unregistered securities on its platform. Ripple, however, contends that the XRP is a digital currency, similar to Bitcoin (BTC).
The case continued to progress, with Judge Torres giving a partial ruling in favor of Ripple, classifying XRP sales on exchanges as non-security. However, XRP trading by institutional investors constituted securities, according to the Judge’s ruling.
Renowned legal practitioners, James Murphy and Fred Rispoli are hopeful Judge Torres’ final judgment will come in early August. However, there might be a little hold-up because of a motion that Judge Sarah Netburn is still working on. Surprisingly, Judge Netburn proposed a quick settlement of the Ripple vs SEC case, as noted in our previous article.
Market experts and observers have since dismissed the possibility of a settlement in the ongoing case. Notably, pro-XRP lawyer Bill Morgan claims a settlement may not be beneficial to both Ripple and the SEC. As mentioned in our earlier post, Morgan claims a “settlement” implies compromise on both sides and will not mean a “big win” for Ripple.
Echoing Morgan’s sentiment is former SEC lawyer Marc Fagel. According to Fagel, both parties lose their appeal right upon settlement. He added that the SEC could also forfeit its $2 billion fine if it decides to settle the case out of court.
Ripple vs SEC: Hurdle to Potential Judgment
The main factor that could stop the Ripple vs SEC case from reaching a final judgment this week is the decision of both parties to appeal previous rulings. Nevertheless, blockchain enthusiast Mickle believes that the SEC’s complaint against Ripple is its weakest to date. Therefore, he believes it is unlikely that the SEC will file an appeal.
Although the judgment is specific to the facts of the case, it could arm other crypto firms fighting the SEC over whether their products fall under the regulator’s jurisdiction.
Meanwhile, XRP has experienced a substantial uptick within the last two weeks, with traders consistently taking profits. The Network Realized Profit/Loss statistics, a determinant of the net profit/loss of all coins exchanged in a given day, has been on the increase since July 12.
At press time, XRP is trading at $0.6082, inking a 0.9% rise in the past day, and a 27.8% rise in the past 30 days.
XRP’s recent uptick is notable as the token has stalled in the $0.5 range for a long time. A favorable verdict for Ripple could lead to a further price increase for Ripple. On the contrary, XRP could face relegation if the ruling favors the regulator.
