what will happen if ripple wins lawsuit

The lawsuit could have a positive or negative effect on the price, depending on the outcome. Hence, the problematic situation that the SEC finds itself. These cookies ensure basic functionalities and security features of the website, anonymously. The allegations have stifled XRPs price, which struggled to match its competitors during previous market cycles due to the fear, uncertainty, and doubt the case caused. The legal battle between Ripple and the SEC began in late 2020, when the regulator filed a lawsuit against the company. Its relative strength index (purple) is declining fast, meaning that it's oversold at the moment, yet its 30-day moving average (red) has recently overtaken its 200-day average (blue). About 47 billion XRP is in circulation, and the XRP ledger is open-source with hundreds of developers. The Hong Kong firm's boss also believes a Ripple win will see the re-listing of XRP on US crypto exchanges, adding: "There's potential for a new dynamic in the market . If the U.S. government wants your money, they'll get it eventually. The Security and Exchange Commission (SEC) formally filed a lawsuit against Ripple on 23 rd December for a $1.3 billion sales of an unregistered security. The Ripple lawsuit consists of reclaiming that XRP is a currency as a part of XRP digital assets. It is very difficult to win a motion to strike; more than likely, Ripple will have the opportunity to present evidence and argue the fair notice defense throughout most or all of the case. XRP bag holders are waiting for the case to get over. XRPs bullish thesis would be invalidated if the asset nosedives to the 23.6% Fibonacci Retracement level at $0.34. 2023 FinanceFeeds Limited. The reason is that even if XRP is deemed a crypto coin, regulation can still hit popular crypto exchanges such as Coinbase (NASDAQ:COIN). Therefore, all eyes are on the defendant company as it pushes for the timely deposition of former SEC director William Hinman. Bearish scenario: Ripple loses the case, and the token gets banned worldwide - In this case, Ripple will need to find a different business model, and the price of XRP can crash to the lows of . Needless to say, this is the best-case scenario, and it assumes another bull market on the scale of last year's, which certainly isn't a given right now. XRP. This cookie is set by GDPR Cookie Consent plugin. If Ripple wins its case, it will not have to pay out any money and will be able to continue working on projects like those mentioned above. Play Now! XRP price could stand to gain from the payment giants win in the SEC vs. Ripple lawsuit. They have joined other well-known companies such as Binance US, Swipe, and OKCoin that have stopped transacting or using XRP, leaving US investors in limbo. Inexplicably, the first baseman bought it and chaos erupted. The move is another blow for the crypto traders who recently saw a sizable number of banks deciding not to finance the wobbly asset class.. The SEC vs. Ripple lawsuit has dragged on since 2020, with many twists and turns, some in favor of the payment giant. The SEC created a fund from the money it seized and offered Veri holders a buyback if they sold the tokens back to the SEC at a set price. If all the XRP is burnt, it could be the best buying opportunity in the space. It has since raised $4 million as ESG-focused investors flock to its native IMPT token, which is currently available at a price of $0.018. So what happens to XRP holders if XRP is declared a security and has to be registered with SEC?, a Twitter user recently asked John Deaton, the attorney representing over 67,000 XRP holders with amicus curiae status in the case. But the main thing that it does is that it is creating a new way of transferring money around the world. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines. The Commission also alleged that Middleton manipulated the price and volume of VERI on secondary digital-asset trading platforms during the VERI ICO.. The cookie is used to store the user consent for the cookies in the category "Other. Still, a positive outcome for Ripple will almost certainly lift the XRP price to some degree, so it will probably end up paying to acquire some XRP now and hold tight. The SEC initiated legal action against Ripple Labs based on allegations that the company had offered unregistered securities in the form of XRP tokens. And assuming that this is a favorable one for Ripple (i.e. Binance has continued to remain committed to increasing the adoption and mainstream accessibility of crypto and we are excited to be taking this step in making access to digital assets effortless for more Africans., There is a massive opportunity to provide huge gains in efficiency to wealth management clients due to the failures of existing players in this market.. Ripple Labs would likely need to face the music and pay significant fines. The SEC considers that XRP is not a currency but a security and is subject to securities laws. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". As Millennials and Gen Z become the dominant consumer class, the way payments are made is changing. Home Policy Lawsuits XRP Price Prediction if It Wins Lawsuit. The lawsuit has continued for three years, with both parties submitting final filings and waiting for a decision. XRPLedgers native token XRP is currently trading sideways after a long-term downtrend. According to Ripple Labs, the XRP token is not a security. This was highly bullish for XRP, and it was one of the main reasons why it began outperforming the market as a whole about a month or so ago. In addition, several legal experts including XRP-friendly attorney Jeremy Hogan have said a win on fair notice could save the industry from the SEC. The SEC can use the money to create a fund that helps reimburse harmed #XRPHolders.. But what are the charges that the SEC and their unshakeable chairman Gary Gensler are throwing at Ripple? The SEC filed a case against Veritaseum and its owner Reginald Middleton in August 2019 alleging they fraudulently raised millions of dollars in virtual currency from the unregistered sales of securities called VERI based on a series of false and misleading statements to potential and actual investors, including misrepresentations about the potential profitability and viability of Veritaseums purported operations, the use of funds raised in the VERI ICO, and the amount of funds raised in the VERI ICO. . The high degree of leverage can work against you as well as for you. Gensler gets the credit helping his political chances. Japanese banks to trial stablecoin payment system, Binance adds support for African currencies: Liberia, Sierra Leone, Gambia, Mauritania, Cape Verde, InvestCloud launches front-to-back single solution for advisors and wealth managers, Step launches stock investing for teens and young adults. quotes delayed at least 15 minutes, all others at least 20 minutes. If Ripple goes down, the SEC then has the precedent to address other digital decentralized assets. Even if youre not an XRP holder, the result of the XRP lawsuit is expected to change the way cryptocurrency is regulated in the United States. What will happen to the dozens of banks? However, you may visit "Cookie Settings" to provide a controlled consent. Community Musings: Ripple and XRP will only have an advantage moving forward. This implies that buyers collect their funds to profit from a shared enterprise. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. These cookies will be stored in your browser only with your consent. The XRP price has fallen by 7% in the past 24 hours, dropping to $0.452427 amid a generalized fall in the wider cryptocurrency market. Ripple Labs, Inc. is still creating new business opportunities by expanding its operations with Japanese banks and leading a new ledger project for central banks. Because many nations look to the United States as a leader in this field, how it regulates crypto may be followed elsewhere. Deaton started out by reminding that Ripple owns over 50 billion XRP; a $5 XRP equals Ripple being worth $250 billion dollars significantly more valuable than MorganStanley or Goldman Sachs. But Bez expertly baited the first baseman, running instead back to home plate. The author makes no representations as to the accuracy, completeness, or suitability of this information. Ripple insists that the entire court case is due to the SECs mischaracterization of the XRP token and that the ICO was not an unregistered securities offering. Although John E. Deaton has come to the conclusion that only Bitcoin and XRP would be safe after the abovementioned settlement, Ripple officials have stated they have gone forward with the lawsuit as a means to protect their interests but also the cryptocurrency industry. Just the day before yesterday, Ripple CEO Brad Garlinghouse was a guest on Bloomberg, talking about hopes for new talks with the U.S. Securities and Exchange Commission (SEC) once Gary Gensler takes over as chairman. And that Ripple, its two top executives named in the suit, along with millions of retail holders, should have known this all along, even though the agency never did. If the court decides to rule in favor of Ripple and dismisses the lawsuit, the price of XRP could boost further. Ripple wins. It does not store any personal data. DailyCoin is an online media outlet, with a focus to cover blockchain and crypto news, opinions, trends and helpful articles. The cookie is used to store the user consent for the cookies in the category "Analytics". XRP, the native token of Ripple, did not mimic its early 2018 rally when it surpassed $3. Should XRP be considered a currency or a security? You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. Are Payment Cards To Face The Same Fate As Cash In The Virtual Age? The motion, filed on behalf of XRP holders, was responded to by both parties a few days ago. Ripple could have exactly what it needs to win over the judges. The Ripple/SEC lawsuit: Filing ends Both the SEC and Ripple Labs, the company behind the ripple ( XRP) cryptocurrency, had until 30 November 2022 to submit a reply in support of their summary judgment motions, which were made public on 2 December 2022. The app allowsusers to research more than 1000 stocks and ETFs, curate a portfolio based on risk rankings assigned to each security, and buy fractional shares for as little as $1. With a violent drop of over 5%, bulls got caught by surprise. Well, everything. In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have rebounded slightly in February. The company is trying to defend itself from a class action lawsuit by early investors, who claim to have been offered XRP with promises of future gains. Assuming that XRP surpasses its former record high by this percentage, this would imply an eventual price of about $12.24. Are Payment Cards To Face The Same Fate As Cash In The Virtual Age? You also have the option to opt-out of these cookies. If Ripple wins SEC lawsuit, only Bitcoin and XRP will be safe - John Deaton December 7, 2021 8:35 am UTC, Rick Steves "What's crazy ironic, is that, with Gensler at the helm, the lawsuit could ultimately give Ripple and XRP an advantage moving forward". Can #ETH investors honestly say theyre not worried? The ledger uses an efficient consensus mechanism, which paves the way for fast, low-cost transactions. This move has also caused many altcoin traders to be caught off guard leading to $65 million in liquidations. After that SEC will go after Ether. For its part, the SEC claims that ex-director Hinmans prior clarifying opinions about Ethereum and Bitcoin (CCC:BTC-USD) were his own and not of the agency. These cookies track visitors across websites and collect information to provide customized ads. Nothing herein shall be construed as financial, legal, or tax advice. What separates this security lawsuit from similar other ones like that of Block.One and Telegram in the crypto space is the fact that SEC has formally named the founder Chris Larsen and [] The XRP token was delisted from the popular exchange in January 2023. CryptoNewsZ predicts that XRP could rise to as high as $0.68 in 2025. In a part of his Axios interview that wasn't aired by HBO on March 7, Ripple CEO Brad Garlinghouse mentioned that his company may move out of the U.S. if it loses its much-talked-about legal battle with the U.S. Securities and Exchange Commission. The Securities and Exchange Commission's case against Ripple is drawing to a close. A couple of days ago, for example, Judge Torres granted Ripple permission to present two amicus briefs that could support its case, even though the SEC had opposed such a move. That is why their MoneyGram partnership saw Ripple put its XRP token to good use as it faced a backlash from the crypto community for being a financial token. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Proponents of cryptocurrencies insist that Ripple Labs has done nothing wrong. The company has sold about $1.2 billion in XRP since then, according to Messari. The pattern element in the name contains the unique identity number of the account or website it relates to. First only by a few nations, and eventually by all the nations. At this point central banks, institutions, and businesses will begin to use XRP to make transactions.