XRP may demonstrate a powerful bullish breakout after Coinbase CEO Brian Armstrong made an important statement regarding the lawsuit from the U.S. Securities and Exchange Commission (SEC).
According to him, Coinbase reached an agreement with the SEC to terminate the lawsuit against the cryptocurrency exchange. This means that charges of trading unregistered securities may be dropped against Coinbase as early as next week.
The termination of the lawsuit against Coinbase increases the likelihood that the SEC may withdraw its appeal against Ripple, the issuer of XRP. At least, this is what the crypto community and Ripple Labs CEO Brad Garlinghouse hope for.
Ripple and the SEC have been embroiled in a legal battle since 2020, when the regulator accused the company of selling unregistered securities. Later, Judge Analisa Torres ruled that XRP is not a security when sold to retail customers, but institutional sales do violate securities law. She ordered Ripple to pay $125 million, which is significantly lower than the SEC's initial demand of $2 billion.
Both sides have appealed the judge's decision, but now many experts believe that the Securities and Exchange Commission may withdraw its statement. This will positively affect the price of XRP.
However, the altcoin is currently declining. Over the week, XRP has fallen nearly 8%, and in the last 24 hours – by 3.56%. At the time of writing, the cryptocurrency is trading at $2.57. This is almost 45% higher than the minimum recorded in February.