By
Steve Muchoki
April 26th, 2024
The anticipation surrounding a possible settlement revolves around the expectation that once a deal is inked, it will take away the gloom that still clouds Ripple Labs’ operations and finally set the firm and XRP on a path to truly thrive.
In the ongoing protracted legal battle between Ripple Labs Inc and the US Securities and Exchange Commission (SEC), unconfirmed reports have swirled that a settlement announcement may be on the horizon today.
Incoming Turning Point in Ripple vs SEC Case?
Ripple and the SEC are reportedly on the verge of concluding their three-year legal battle, with speculations pointing towards a settlement on November 30. This would mark a crucial milestone, given the SEC’s partial loss to Ripple in the initial court ruling and the denial of its interlocutory appeal.
The upcoming closed-door meeting, known as the Sunshine Act Meetings, is expected to address various topics, including the institution and settlement of legal actions, resolution of litigation claims, and matters related to examinations and enforcement proceedings.
The SEC’s legal action against Ripple dates back to December 2020 when it alleged that the sale of Ripple’s associated cryptocurrency, XRP constituted an unregistered securities offering. Since then, the lawsuit has become a focal point of contention, with Ripple fiercely defending its position and the broader XRP community closely watching developments.
The anticipation surrounding a possible settlement revolves around the expectation that once a deal is inked, it will take away the gloom that still clouds Ripple Labs’ operations and finally set the firm and XRP on a path to truly thrive.
Market Impact
The possibility of a settlement has sparked optimism within the XRP community, with the hope that it could trigger a rally in the coin’s price. The removal of regulatory uncertainties surrounding cryptocurrency might attract new investors and open the door for increased adoption and usage. However, it is essential for market participants to approach the situation with caution.
While the potential settlement is generating excitement, unverified information can lead to volatile market reactions. The outcome of legal proceedings remains unpredictable, and traders and investors are advised to stay informed and be prepared for potential market fluctuations leading up to and following the rumored announcement date.
As of the latest available data, XRP is trading at $0.6, showing a 1.5% decrease in the past 24 hours. However, the XRP community has been encouraged by the ecosystem’s growth potential following Ripple’s acquisition of Swiss crypto custody provider Metaco.
With the acquisition of Metaco, Ripple is now the sole stakeholder of the digital asset custody company. Nonetheless, Metaco would continue to operate as an independent brand. The $250 million deal aims to broaden Ripple’s remittance network and facilitate its expansion into institutional crypto custody.
Additionally, Ripple’s partnerships with major banks like HSBC Holdings plc (LON: HSBA) and BBVA Switzerland migrating digital asset operations to Metaco’s custody platform are seen as positive signs for XRP’s inherent value. According to Ripple’s head of custody, Sagar Shah, crypto assets under custody may exceed $10 trillion by the end of the decade.
