Approximately 20 hours ago, the news about Ripple hit the cryptocurrency markets like a bombshell. It was said that the SEC had given up. And they really did. The resources and efforts spent for years had all gone to waste. Even the papers that the SEC had used to accuse Ripple executives had become useless trash. The SEC reached a settlement with Ripple, stepping back and dropping the case.
What Will Happen in the Ripple Case?
The charges against Ripple executives have been dropped. This was a positive step and it prevented the case from dragging on until 2027. As you may recall, 6-7 weeks ago we were discussing what could happen next in the case. One of the alternative possibilities we mentioned was the early appeal process due to the dropping of charges against Ripple executives.
Everyone focused on the initial stage with the shock of the Ripple news and wondered why the price did not exceed $0.7. But there was also a second stage to this. As we announced yesterday, the possibility we highlighted was the “strong continuation of other charges.”
Today, Fox News reporter Eleanor Terrett shared the following based on insider information or close sources:
“According to close sources, although the SEC has dropped charges against executives, they will not give up fighting. The battle will continue on many issues, including classifying XRP sales as an investment program.”
Ripple vs SEC
We said yesterday that the score is 3-0 and it continues. However, the score in legal battles works differently than in football. No matter how much time passes, there is a possibility of the SEC scoring goals in their own net. The SEC will likely try to do the following to win the match:
- The SEC will continue to pursue the evaluation of corporate sales as investment contracts in court.
- They will appeal to classify secondary market sales as unregistered securities trading.
- They will fight with all their might for a court decision that confirms the flexible applicability of the Howey test.
All these processes will cause fluctuations in the XRP Coin price. Perhaps the possibility of a turnaround in the match has discouraged XRP Coin buyers. If the SEC goes for a settlement with Ripple and gives up after suffering so many defeats in a row, it will ruin its reputation. Gensler’s previous statements tell us that such a big “disgrace” will not be allowed.
