Despite some analysts noting why XRP is unlikely to end on a high, certain macro (and micro) factors could and possibly see it enjoy the same trajectory it did following in favor of Ripple.
SEC-Related Factors Could Impact XRP Price
On August 17, the US Securities and Exchange Commission (SEC) was given approval by Judge Analisa Torres to file its motion seeking an interlocutory appeal against her ruling at the Court of Appeals.
However, this wasn’t an approval of the SEC’s appeal, and that is something that everyone in the XRP community is currently anticipating, as the court can either choose to accept or reject the appeal after considering the grounds for appeal and whether it meets the requirements needed to allow it.
As a former SEC official Marc Fogel , the specific requirements for an interlocutory appeal are “hard to meet,” and the odds seem to be against the SEC. As such, the court is expected to deny the SEC’s request for an interlocutory appeal.
If that happens, we could see again enjoy most of the gains it saw following Judge Torres’ ruling when the token’s market cap rose significantly, overtaking Binance’s BNB to become the fourth-largest crypto by market cap (although it has dropped back to 5th).
Another factor that could spark an upward trend for XRP is if a settlement between Ripple and the SEC becomes more feasible. Stakeholders in the crypto community have commented on the possibility of this happening and factors that could prompt both parties to settle.
Pro-XRP legal expert John Deaton once stated that a settlement could happen this year if Judge Failla granted Coinbase’s motion to dismiss the against it. If that were to happen, the Judge would likely be adopting Judge Torres’ ruling that programmatic sales do not constitute investment contracts and crypto tokens bought through exchanges cannot be labeled as one.
It is believed that this could force the SEC into settling as it will become more established (especially if its interlocutory appeal was rejected alongside) that it doesn’t have jurisdiction over token sales on exchanges as they do not constitute investment contracts.
A more interesting factor that could force the SEC into a settlement is the revelations (and future ones) being made about the ETH Gate. As a form of damage control, the Commission could propose a settlement with Ripple rather than dragging , where its credibility could be jeopardized.
The SEC proposing a settlement (not necessarily in the public eye) will be considered a major win for Ripple. It could restore investors’ confidence in the ecosystem, leading to a price increase in the XRP token.
XRP continues the recovery trend to rest above $0.51 | Source:
Ripple’s Expansion Plans
Ripple has proven not to be deterred by the long-running battle against the SEC as the crypto firm has continued to build amidst it. In fact, the company’s President, Monica Lang, recently that the court case (following Judge Torres’ ruling) has helped them to expand their business not just in the US but “even more globally.”
According to her, the ruling gave the company much-needed clarity, especially amid regulatory uncertainty. With this in mind, the company can map out a proper framework going forward, bearing in mind that Judge Torres had ruled that XRP isn’t a security in itself.
On the back of Judge Torres’ ruling, Ripple’s general counsel Stuart Alderoty had revealed to CNBC in an interview that Ripple could potentially begin talks with US financial firms about them adopting Ripple’s On-Demand Liquidity (ODL) product, which can be used to facilitate cross-border transactions.
If this were to happen, it would undoubtedly represent a bullish signal for the XRP community. Although Ripple and XRP have enjoyed outstanding success overseas (especially in Asia), many still believe that more work needs to be done to penetrate the American market. Therefore, a move like that could convince investors of the great strides the company is making in America.
Meanwhile, there are also rumors of Ripple going public. Ripple is set to hold its “proper victory party” on September 29 in New York, and many in the XRP community that the crypto firm could announce its initial public offering (IPO) plans at the event. Such an announcement will be huge and could generate more buzz and interest in the company, with XRP’s price being a beneficiary of this news.
XRP is trading at $0.50, up by close to 2% in the last twenty-four hours as anticipation towards the party builds up.
