SEC Drops XRP Appeal, Ripple Withdraws Cross-Appeal
2min read The cryptocurrency community is eagerly awaiting the outcome of a closed meeting scheduled by the US Securities and Exchange Commission (SEC) on April 3. This meeting is expected to discuss the ongoing lawsuit against Ripple Labs, which could significantly impact the future of XRP, the digital asset issued by Ripple. The primary focus of the meeting is whether the SEC will withdraw its appeal regarding the Programmatic Sales ruling, a decision that has been publicly speculated by Ripple CEO Brad Garlinghouse but remains unconfirmed by the SEC.
Legal analysts suggest that the SEC’s closed-door meeting could bring regulatory clarity on XRP and broader digital assets. The outcome of this meeting is anticipated to determine the future of Ripple’s XRP, as the Commission is set to decide whether to drop its appeal claiming XRP is a security. This crucial vote, happening today, could determine the future of Ripple’s XRP. The US House crypto hearing on April 9 is expected to focus on the structure of the crypto market. The House will discuss the necessity of introducing a solid regulatory framework for the crypto industry.
In a surprising turnaround, Ripple CEO Brad Garlinghouse revealed that the SEC dropped its appeal in the XRP lawsuit, following which the company withdrew its cross-appeal. This significant development has sparked enthusiasm within the XRP community, anticipating a swift settlement in the prolonged Ripple vs SEC case. However, legal expert Fred Rispoli clarified that the lawsuit wasn’t over as there are still procedures pending. He posited that the Ripple case could be settled within two months with the SEC commission’s vote on the matter. If today’s vote concludes to drop the appeal, the case could surprisingly wrap up.
The uncertainty surrounding the SEC's decision has had a noticeable effect on XRP's price, which declined before experiencing a slight rebound. This volatility is largely attributed to the lack of clarity in the legal proceedings, which has caused XRP to lag behind other cryptocurrencies in the market. The market is eagerly awaiting a resolution that could either lift the legal overhang on XRP or prolong its period of uncertainty. The potential reduction of penalties from $150 million to $50 million and the elimination of restrictions on institutional sales are key points of interest. If the SEC drops its appeal, it could provide a significant boost to XRP's value. Conversely, any delays or continued legal battles could keep the token in a state of limbo, further impacting its market performance.
In addition to the legal proceedings, speculation around an XRP Exchange-Traded Fund (ETF) is growing, with 18 applications pending approval. The approval of an XRP ETF could lead to a substantial increase in its value, while delays in the ruling could result in price fluctuations. Economic factors such as fears of a U.S. recession and trade tensions are also contributing to the unpredictable market conditions, adding to the uncertainty surrounding XRP's future.
The outcome of the SEC's April 3 meeting will be crucial in determining the short-term direction for XRP. A formal withdrawal of the appeal by the SEC would be a significant development, restoring investor confidence and opening new upside potential. However, if the meeting results in further delays or continued legal battles, XRP may remain in a prolonged consolidation phase with limited upside potential. Traders are advised to monitor signals from indicators to gauge the subsequent course of action.
