XRP’s Future Under Speculation as SEC Lawsuit Sees Twist

While XRP is undoubtedly one of the most prominent projects in the crypto space, it has also faced a horde of legal issues. These mainly stem from its contentious relationship with the SEC in the United States and the two have been locked in a long-running legal battle. 

The latest development in the SEC-Ripple Labs court case has some questioning the future of Ripple itself and how these developments will impact the industry as a whole. 

Ripple Over the Years

XRP, the native token of Ripple Labs, has established itself as the go-to crypto for cross-border transactions. It has been known to complete transfers worth millions of dollars in only seconds while charging pennies in fees. This, along with partnerships with the likes of Western Union, has helped solidify its place. 

But we’re also seeing XRP being used for other purposes such as gambling. More consumers are leveraging crypto assets to gamble and XRP has not been left out. Crypto casinos tend to accept a range of tokens and XRP is typically part of them. However, all of these diverse use cases could be inevitably affected by the outcome of Ripple’s issues with the SEC.

Ripple Vs the SEC

Ripple Labs’ issues with the SEC stretch back years and this point and has brought forward an age-old question within the digital asset space; are cryptos securities? The first suit was brought forward in December 2021 alleging that the XRP token was an unregistered security. By 2023, a judge ruled that Ripple’s native token was indeed not a security, and this was taken as a collective win for the crypto sector. But by this year, the SEC filed another suit seeking about $2 billion in damages from Ripple Labs. The amount ordered from Ripple Labs is now $125 million, though current signs point to the company appealing this decision. 

While the declaration of XRP not being a security still stands, there is the chance that it will fight even the fine ruling. If it is successful, Ripple Labs will be the clear winner in this scuffle with the SEC and this could embolden other firms in the industry. For years, the commission has had a contentious relationship with the crypto sector, with everyone from Binance to Coinbase finding themselves in hot water with it. But Ripple Labs has been unrelenting in the midst of it all.

XRP’s Price Trajectory 

Currently, crypto experts are pegging XRP to see steady price increases over the next few months as opposed to dramatic spikes. Its use has been consistent even in the face of its legal issues and this shows no sign of stopping. 

At the same time, several factors could come into play that would benefit XRP. First, there are the impending US elections. There has been more emphasis on crypto throughout this election cycle, with Trump being a vocal supporter of the asset class and Kamala Harris slowly aligning herself with the sector. It’s believed that should a pro-crypto candidate enter the White House, more pro-crypto regulations will be passed. 

Trump has already promised to fire current SEC chair Gary Gensler, which has been met with mixed reactions. On top of the election, there is also the possibility of a spot XRP ETF. Spot ETFs have been one of the biggest topics in the crypto space this year and both Bitcoin and Ether have benefited from getting their own. Now, industry watchers are speculating on which token will get the same treatment and XRP is under consideration. In fact, Ripple Labs CEO Brad Garlinghouse has chimed in on the possibility. 

“I think it would make a lot of sense. If you think about it, only XRP and Bitcoin have regulatory clarity on status in the US. XRP has been a top ten crypto asset by market cap and is in the top five if you look at daily traded volume, so I think that would make a lot of sense,” Garlinghouse said. 

If this does happen, the market price of XRP can be expected to spike as has been the case with others and the token’s status as an industry giant will only be further solidified. 

The Future Of Ripple

Over the next few months, Ripple Labs will have to take action regarding the ongoing SEC lawsuit. It can choose to appeal the fine and stretch out the battle for several more months or concede.

The company could also push more heavily for a spot ETF, which many investors are solidly behind. The interest in spot crypto ETFs is finite and the first few tokens to get in on the action will see the most benefit. Finally, the outcome of the US Presidential elections could see a pro-crypto leader push for laws that will benefit Ripple Labs and the industry at large.