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- Ripple’s legal battle with the SEC continues to impact XRP, with uncertainty weighing its market performance.
- Regulatory shifts suggest a possible resolution to the Ripple-SEC lawsuit, sparking speculation within the crypto community.
- Bill Morgan warns that prolonged uncertainty over the SEC’s appeal decision may exert increasing pressure on XRP.
The prolonged legal battle between Ripple Labs and the United States Securities and Exchange Commission constitutes the main factor affecting XRP’s price performance. Pro-crypto lawyer Bill Morgan suggests unresolved lawsuit conditions will increase negative pressure on XRP token value in the market.
Morgan expressed his concerns through Twitter that the XRP price could experience more declining pressure from the ongoing SEC versus Ripple court appeal, although rumors about a settlement persist. Numerous members of the XRP community share similar worries to his.
The start of the lawsuit in December 2020 caused substantial business obstacles for Ripple and major price fluctuations for XRP. XRP has yet to meet its anticipated market value, although it has experienced periodic price increases. Market experts explain that XRP failed to reach its potential because legal confusion remained.
Market Volatility Driven by Legal Proceedings
Morgan noted that the SEC’s unconfirmed plans regarding an appeal of the Ripple lawsuit continue to increase market uncertainties. The market uncertainty surrounding the ripple lawsuit prompts investors to exercise caution because they expect extended litigation may cause an additional value decrease for XRP. There exists a split among analysts about how any price increase following the lawsuit’s termination would play out, as they predict it would prove fleeting.
Recent months have demonstrated XRP’s ability to resist market volatility, yet its current value remains below market predictions. The lawsuit prevents XRP from reaching its potential market position among the top two digital assets. Plaintiffs face continued anxiety due to regulatory ambiguity and the possibility of a pending appeal.
Regulatory Shifts Indicate Possible Resolution
The new SEC Chairman, Mark Uyeda, began his term in January with changes to the policy that caused multiple crypto firms to terminate their legal battles. The court system dropped all legal proceedings against companies Coinbase, Uniswap, Robinhood Crypto, and Kraken. The recent regulatory changes at the SEC have driven experts to hypothesize that the agency might choose to terminate its lawsuit against Ripple.
Multiple crypto industry experts interpret recent SEC actions to dismiss major crypto firms as a sign that Ripple might settle. The market continues observing signs from the regulatory body without official confirmation. XRP stands to experience substantial price increases from the conclusion of the legal proceedings, whether through settlement or dismissal, but the long-term stability remains unpredictable.
The settlement of this legal dispute will determine how Ripple conducts its business moving forward and affects the marketplace position of XRP. The price of XRP is set to continue experiencing unpredictable movements until there is a formal official resolution about the lawsuit.
Also Read: SEC Closes Investigation Into Robinhood Crypto, Signaling a Shift in Regulatory Approach
