XRP, the digital asset used by Ripple Labs in its payment network, has seen a surge in price today, as rumors of a potential settlement between Ripple Labs and the US Securities and Exchange Commission (SEC) surface.
CoinMarketCap data shows XRP is currently trading at $0.5364, up 13% in the last 24 hours and increasing 16% in the last seven days.
Source: CoinMarketCap
While a settlement is not a sure thing, it could have a significant impact on the price of the crypto, removing the regulatory uncertainty that has been weighing on the asset’s value.
Investors Eye XRP In Anticipation Of Ripple-SEC Outcome
The SEC has been in a legal battle with Ripple Labs since December of 2020, alleging that XRP is a security and that Ripple Labs sold it as such without proper registration. The case has had a significant impact on the price of the token, causing it to drop from $0.60 to $0.18 in a matter of days.
However, reports suggest that Ripple Labs is now in talks with the SEC to resolve the case. If a settlement is reached, it would likely remove the doubts surrounding the coin’s legal status, leading to increased confidence and demand for the digital asset.
Impact On XRP’s Price
The potential settlement between Ripple Labs and the SEC could have a significant impact on the price of XRP. A settlement would remove the regulatory ambiguity and legal risk that has been weighing on the asset’s price since the SEC’s announcement of the lawsuit. It could also provide a roadmap for other companies to follow, further validating the use case for the coin and Ripple’s payment network.
If a settlement is reached, we can expect to see a surge in the price of XRP as investors and traders flock to take advantage of the renewed confidence in the asset. However, it is important to note that a settlement is not a foregone conclusion, and investors should exercise caution and consider all factors before making any investment decisions.
Looking Forward
The XRP community will undoubtedly be closely monitoring the legal proceedings in the coming weeks and months. Ripple Labs has been making significant strides in expanding the use cases for its native token, including partnerships with major financial institutions and central banks.
XRP total market cap currently at $27 billion on the daily chart at TradingView.com
In the coming weeks, investors should keep a close eye on the potential settlement talks between Ripple Labs and the SEC.
With a summary judgement potentially being handed down as soon as later this week, XRP could see significant volatility in the short term as the probabilities of various outcomes continue to move market price.
-Featured image from The Market Periodical