The ongoing Ripple v. SEC lawsuit creates uncertainty in the crypto market

The ongoing Ripple v. SEC lawsuit creates uncertainty in the crypto market, raising concerns about XRP's price stability.

The crypto market is known for its volatility, which can be further exacerbated by legal cases. One such case, which has been the subject of much speculation and analysis, is the ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple.

The case, which began in December 2020, centers on the SEC’s claims that Ripple sold unregistered securities in the form of XRP to investors. The SEC is seeking to collect unpaid taxes from Ripple executives and enjoin Ripple from further violations of federal securities law.

As the case has dragged on, there has been much speculation about a possible settlement between the two parties. Earlier this year, the SEC reached an agreement to dismiss a case against crypto exchange FTX after the exchange filed for bankruptcy. This move sparked predictions that the SEC might agree to settle the case with Ripple in a similar fashion.

However, other legal experts have pointed out that the two cases are not entirely comparable and that the SEC might be less inclined to settle the case with Ripple. The case against FTX was at a relatively early stage when it was dismissed, while the case against Ripple has already been the subject of several court hearings and motions.

Another factor that could influence the likelihood of a settlement is the potential impact on the crypto market. The case has already had a significant impact on the market, with XRP price dropping sharply in 2022.

If the case were to continue for another year or two, it could have a devastating effect on the token’s value, warns legal expert Bill Morgan.

Moreover, rumors of a settlement could quickly vanish without any explanation, leaving investors in the dark about the true status of the case. This lack of clarity could also serve to destabilize the market and decrease the market value of XRP.

Despite the lawsuit, which is seen as a legal technicality, the blockchain company has continued to expand its business globally, according to Ripple Senior Vice President Eric van Miltenburg.

The company is making significant progress in its strategic initiatives, and its operations are not dependent on the SEC’s actions. However, analysts believe that the uncertainty surrounding the lawsuit will undoubtedly affect XRP price in the long run.

As the case drags on, there has been no shortage of opinions from legal experts on the possible outcomes of the case and its impact on XRP price. Some experts believe that the case could be settled as early as this year, although there is always a possibility of further delays.

With the SEC now displaying a pattern of dismissing litigation after reaching an agreement, crypto enthusiasts anticipate a similar outcome for the case against Ripple.

However, the unique aspect of the case is that the SEC chair announced the agency’s intention to sue firms for offering crypto products without proper registration. This broadens the scope of the SEC’s actions in the crypto sphere.

In a statement, House Republican Conference Chair Ann Wagner expressed her stance on the SEC’s role in regulating crypto. According to Wagner, the SEC has been given clear authority by Congress to regulate digital assets like Bitcoin and XRP.

Despite this, she claims that the agency has neglected its responsibility and instead chosen to pursue a strategy of deterrence and punishment.

According to lawyer Fred Rispoli, the recent decisions by the SEC in other cases suggest that a resolution could come quickly. Recently, the crypto exchange FTX reached an agreement with the SEC for the pending case to be dismissed after the exchange filed for bankruptcy.

Earlier this year, the SEC announced an administrative proceeding against crypto exchange Binance and its CEO Changpeng Zhao for allegedly defrauding investors.

In April, the SEC dropped the case after FTX reached an agreement to return funds to investors. Rispoli stated that if the SEC is open to quickly dismissing cases after an agreement is reached, then it stands to reason that they would be equally swift in closing cases where an agreement has already been obtained.

According to his analysis, a close examination of the facts reveals that the SEC is not necessarily biased towards shutting down cases rapidly. Rather, they prefer to take their time and ensure that cases are fully adjudicated before reaching a decision.

However, Rispoli notes that in cases where there is a clear violation of the law and the parties are willing to cooperate, the SEC has demonstrated a willingness to move swiftly and cooperate with the parties involved.

In the case of Coinbase, which is being sued by the SEC for allegedly registering with the agency before selling securities, Rispoli believes that the agency might be more inclined to accept a settlement that involves Coinbase registering its services as a crypto exchange.

However, if Coinbase is adamant about registering its services in a way that complies with the crypto industry’s standards, Rispoli anticipates that the case could last for another 12 to 18 months.

According to legal expert Bill Morgan, the market instability arising from ongoing doubts will tend to decrease the market value of XRP. A rapid resolution of the lawsuit may benefit XRP in the long run. But, continuing litigation may affect the token value.

Moreover, rumors of a settlement may