If you’ve been in the crypto industry for long, you’ll probably have heard about the XRP-SEC litigation. The lawsuit has been pending since the month of August 2020. authorities from the U.S Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs the company behind Ripple along with its token XRP.
SEC has filed suit against Ripple Labs, along with two top executives for allegedly selling securities that were not registered that were worth $1.3 billion.
Ripple Labs On the other hand came out to defend itself by declaring that SEC did not define clearly what security was and the XRP offered to investors shouldn’t be considered an investment because they do not have any influence over it.
Since the trial began several crypto investors have been keeping their eyes open in order to determine what the final outcome is going to be. The outcome won’t just be a matter that is only relevant to Ripple or XRP investors, but also to the entire cryptocurrency community. Although a victory in the court could benefit XRP much, However, losing the matter could result in the demise of the cryptocurrency asset.
Since the whole affair began in the year 2020, Ripple has not been making a lot of progress in the crypto market because of fear and anxiety in the market. If you’re contemplating purchasing Ripple (XRP), you are going to want to go through this article until the conclusion. We will outline some possible outcomes that could occur should the outcome of the case be in the favor of Ripple.
Ripple-SEC Court Case: Where Are We Now?
Let’s summarize the entire SEC and Ripple case in a couple of paragraphs to help you understand what the current situation is. SEC is mostly taking on Ripple Labs, alleging the company sold a portion of XRP to the public without first having registered that XRP with Commission.
The company claimed that the profits earned from the sale were as high as $1.3 billion which was used to finance Ripple. The company also claimed that it operates as a central platform, not distributed as Ripple Labs claims.
On the opposite, Ripple argued that SEC was not right in that it classified XRP as a security that required registration with the Commission. It claimed that SEC was biased. The thing they held Ripple against was the same issue they have allowed to pass by with certain cryptocurrencies, like Ethereum.
It has been in court for a couple of years, and it may not be resolved until 2023. There are numerous ups and downs thus far in the case. And in April 2022 Ripple Labs was the winner of its pre-trial trial hearings.
The judge was against Ripple and after that victory was secured the investors have been wondering what will happen with respect to Ripple (XRP) should the verdict be to the crypto.
What Will Happen If Ripple Wins the SEC-Ripple Case?
Naturally, it will be the world for both Ripple and the cryptocurrency community. However, it will be a huge win for Ripple which means there’ll be lots of benefits to be enjoyed by Ripple investors.
Let’s take a look at some of the possibilities that could occur in the event that Ripple prevails in court.
1. Demand will be extremely high
If Ripple prevails, in this case, there will be a massive demand for XRP, as more and more people will jump onto the Ripple train to be included in their portfolios. Keep in mind that Ripple is a crucial cryptocurrency with an incredible solution that people can’t resist.
The main reason that has stopped most people from purchasing is the court case. After the trial is completed, they won’t have any excuses to purchase, which will increase the demand for the coin.
2. Look for Ripple’s price Ripple to increase
It is certainly one of the main events that will take place at Ripple following the court case. Keep in mind that demand is among the primary factors driving the price.
When the demand for Ripple increases due to the increase in people who come to the platform, prices will definitely rise dramatically Some experts believe it will rise by 10 times.
The current cost for Ripple (XRP) currently stands at $0.42 However, we could anticipate it to reach near $2 when the trial is concluded.
3. The adoption of Ripple will grow
The demand for Ripple will rise within the financial sector. More banks will accept the concept while financial institutions are able to get their hands on the table to endorse the cryptocurrency asset.
A lot of countries will also pass laws that allow Ripple. The acceptance and adoption of the currency will surely increase when the ruling of the courts favors the cryptocurrency asset.
4. XRP returns to exchanges
At the moment, several exchanges have taken XRP from their lists due to fear of having to make a difference with the law.
However, once the trial is settled and favors XRP in the future, the coin is likely to appear on the major exchanges, where traders will be able to connect and trade. This means trading and buying XRP is much simpler than it was previously.
5. A lot of people will make money from XRP
At present, there are numerous investors who are holding XRP in the hopes that the court decision will be over soon and will be in favor of Ripple. If it happens as planned the price will dramatically increase and demand will also rise into the stratosphere.
This is a great opportunity for investors that are ready for the sale of their XRP the time. Many will make a lot of money by selling their XRP that has been in use for a long time.