Key Takeaways
- Experts believe the XRP price will skyrocket if the Ripple vs SEC legal battle is finally resolved.
- The SEC has continued to pursue the XRP case and is set for a legal battle on April 16, even after dropping other crypto-related cases.
- A successful resolution of the long-standing case will eliminate the regulatory headwinds and set the stage for other actions, such as the launch of XRP ETFs.
A US Court is set to decide on the long-drawn Ripple Vs. SEC lawsuit on April 16, making it a crucial day that experts believe will see the XRP price skyrocket.
According to the latest developments, the current political situation within the US government, which is shifting towards the crypto industry following the inauguration of a pro-crypto government, has made XRP holders anticipate a positive sentiment at the conclusion of the case.
The Longest Legal Proceedings within the Crypto Space
Over the past year, XRP has been one of the best-performing cryptocurrencies, experiencing a cumulative increase of 245.95%. However, the token’s price has recently dropped to around $2.17, reflecting a bearish market sentiment. XRP holders now believe that the lawsuit, which has been ongoing for over four years, could be resolved on April 16, leading to a surge in XRP’s value.
The Ripple vs. XRP lawsuit has been one of the longest legal proceedings in the crypto space. It pits the company behind the XRP token against the top US financial regulator, the Securities and Exchange Commission (SEC). The ever-winding case, which started in 2020, has had so many twists that it’s been difficult for many to keep up, with continual extensions and delays coming just as it’s about to come to a close.
SEC’s Latest Actions Have Sent a Positive Sentiment to the Community
The lawsuit, whose outcome many believe will positively impact the XRP price, raises the question of whether XRP is a security or commodity at its core. The court has previously used the 1946 Howey Test as legal evidence to investigate Ripple Labs Inc. The unending legal battle has created market uncertainties that have negatively affected the XRP price and slowed down its adoption, as the uncertainties have diminished investor confidence.
After four years of seemingly unending battles, the battle could end now that we have the April 16 verdict date. This will bring the highly anticipated certainty that has eluded XRP for so long. It should be noted that since the beginning of the year, the SEC has ceased prosecuting several crypto-related cases, sending a positive sentiment regarding the potential outcome of the Ripple vs. SEC case.
Conclusion
The SEC set a precedent in 2025 by dismissing numerous high-profile lawsuits against individuals and crypto firms. Even after the agency filed an appeal against an outcome that favored Ripple, the SEC has been silent about the Ripple vs. XRP case. Considering the Trump administration’s pro-crypto sentiment, experts strongly believe that the outcome will favor XRP, which could work positively towards anticipated developments such as the pending XRP ETF applications.
Frequently Asked Questions (FAQs)
What is the Ripple vs. SEC Lawsuit?
The Ripple vs SEC lawsuit agency filed the lawsuit in December 2020, alleging that Ripple conducted an unregistered securities offering by selling XRP tokens. The lawsuit aims to determine whether XRP should be classified as a security under US securities laws.
What is Security?
A security is a financial instrument representing ownership in a company and the right to claim a share of its profits. Governments regulate securities to protect consumers and ensure fair and transparent transactions.
What is the Howey Test, and why is it Relevant in This Case?
The Howey Test, established by the US Supreme Court in 1946, is used to determine whether a transaction is an “investment contract,” which would make it secure. The test asks if there is investment money, a common enterprise, an expectation of a profit, and reliance on others. The SEC has determined to apply this test in its argument that the XRP sales were investment contracts in which buyers expected to reap profits from the company’s actions.
