The long-running legal battle between Ripple and the SEC is finally approaching its conclusion, marking a significant victory for both Ripple and the broader cryptocurrency sector. This resolution could set a crucial precedent for future crypto regulations. Following the lawsuit’s resolution, XRP experienced a price surge of over 10%. With regulatory obstacles now out of the way, some forecasts suggest XRP could surpass $5 by 2025.
SEC Drops Appeal: A Turning Point for XRP
In a recent X post, software engineer Vincent Van Code elaborated on why the SEC’s decision to drop its appeal against Ripple is a major win for XRP. He also addressed why XRP’s price hasn’t skyrocketed yet, despite his earlier expectations.
He pointed out that the primary risk posed by the SEC’s appeal was its potential challenge to Judge Torres' ruling that XRP, in and of itself, is not a security. This uncertainty discouraged major banks and institutions from engaging with or investing in XRP.
Additionally, Ripple was fined $125 million last year for direct institutional sales, but the fine has already been paid and placed in escrow while awaiting appeal clarity. CEO Brad Garlinghouse mentioned that Ripple might appeal the ruling on institutional sales, but that remains a separate matter.
Key Takeaway – XRP is Not a Security
Even in a worst-case scenario, Ripple would simply need to register its institutional sales with the SEC, or institutions could acquire XRP via decentralized exchanges (DEX), automated market makers (AMM), liquidity providers (LPs), or RLUSD.
The critical takeaway is that the debate over XRP’s security status is now settled. With the SEC’s challenges behind them, Ripple and its 1,500 partners can move forward without legal concerns, focusing on expansion and adoption.
As for XRP’s price, Van Code pointed out that low trading volume persists, mainly due to market manipulation by Binance’s VIP trading bots. Large investors will likely accumulate XRP once the market conditions are ideal, though they are proceeding cautiously due to corporate approval processes.
The Bottom Line
The uncertainty surrounding XRP has disappeared, and there are no significant obstacles to its adoption. A drastic price drop is unlikely.
Van Code remains optimistic about XRP’s future, acknowledging that while his price predictions have not always been accurate, patience is key. He urged the XRP community to embrace this legal victory, remain patient, and plan strategically for the future.