On Thursday, May 8, the SEC vs. Ripple case is back in focus, which could affect the demand for XRP. The SEC has a closed-door meeting planned where Chair Atkins and the Commissioners will vote on important matters related to the case. Among the items on the agenda are potentially lifting the ban on institutional XRP sales, reducing the $125 million penalty, and possibly dropping the appeal concerning the ruling on Programmatic Sales of XRP.
SEC to Lift Injunction and Reduce Penalty in Ripple Case
The SEC staff has reached an agreement to lift the injunction and reduce the financial penalty. In a joint motion, Ripple and the SEC have formally requested a pause in the ongoing appeal process, citing key progress in their discussions toward a potential settlement. The motion also reiterates Ripple’s earlier statement, confirming that the SEC intends to withdraw its appeal. This move signals a shift in the case, as both parties work towards a resolution outside of the courtroom.
XRP’s Legal Future and Market Struggles
The Commission may choose to drop the ongoing appeal and decide to uphold Judge Torres’ ruling, which would mark a significant step forward in the case. This decision could have a major impact on Ripple’s legal standing and its future in the crypto space. However, until that happens, XRP continues to trade far below its January high of $3.3999, and is still well off its all-time peak of $3.5505. Despite some positive momentum, the token has yet to reach those levels, reflecting its regulatory situation’s uncertainty.
XRP Faces SEC Uncertainty and Market Struggles
On May 8, XRP experienced a 1.31% decline, reversing the 1.08% gain from the previous day, and closing at $2.21. While the broader cryptocurrency market saw a slight increase of 0.08%, bringing the total market cap to $2.95 trillion, XRP underperformed. This drop was influenced by ongoing uncertainty surrounding the SEC’s legal strategies and the potential approval of an XRP-spot ETF, which has been weighing on demand for the token.
XRP’s price movement in the short term will depend on several key developments, including decisions from the SEC, court filings, and the potential withdrawal of appeals. Updates regarding the XRP-spot ETF and broader macroeconomic factors, such as U.S.-China trade relations will also be key in determining the token’s future trajectory.
Key Drivers to Watch
Traders should keep a close eye on the SEC’s decisions regarding the Ripple case, the flow of BTC-spot ETF applications, and key updates from the U.S. economy. A favorable ruling from the SEC could provide a boost to XRP, while the overall sentiment across the crypto market will largely hinge on clearer regulatory developments and shifting global risk appetite. These factors will play a critical role in determining the market’s direction in the near term.
Final Thoughts
The SEC vs. Ripple case outcome will play a major role in XRP’s future. Decisions like lifting the injunction, reducing penalties, and possibly dropping the appeal could impact Ripple’s legal standing and XRP demand. The crypto market will watch closely as both sides move toward a potential settlement.
However, XRP’s price still faces challenges due to ongoing regulatory uncertainty and market conditions. In the near term, XRP’s price will depend on SEC rulings, the progress of the XRP-spot ETF, and broader economic trends. Traders and investors should stay alert, as these factors will guide the market in the coming months.
