XRP (XRP-USD) crypto has been gaining ground after the recent Ripple Labs win on March 11 in its legal fight with the Securities and Exchange Commission (SEC). Recently, however, both the SEC and Ripple have agreed to provide final arguments on the case by the end of 2022. They jointly proposed a summary judgment briefing schedule to the judge.
They both proposed opening briefs for summary judgment and expert challenges in August 2022. Closing briefs would take place by end of the year. As a result, a final decision could be made by March 2023. That kind of finality is what XRP crypto needs to be able to move significantly higher.
The lawsuit from the SEC has been a drag on XRP. The SEC sued Ripple Labs and its two top executives, Chris Larsen and Brad Garlinghouse in 2020. Last month’s decision has empowered Ripple Labs with another line of defense. It might make the SEC provide its documents why it treats Bitcoin (BTC-USD) and Ethereum (ETH-USD) as cryptocurrencies, but not XRP.
The SEC claims XRP is a security and wants Ripple to register the securities and pay fines. The net effect has been to shut down all new crypto launches in the U.S. as developers don’t want to deal with the SEC. Industry observers say a Ripple victory could stop the SEC’s “regulation by enforcement” approach to the crypto industry.
Reuters published on April 21 an analysis by Kara Kapp, a partner in Cozen O’Connor White Collar Defense & Investigations practice, of the court decision. It allowed Ripple’s “fair notice” defense to proceed and Ms. Kapp said this could have a “ripple effect” on other securities legislation defenses by crypto companies when confronted by the SEC.
This Helps XRP Crypto
XRP, the 7th largest cryptocurrency with a $32 billion market capitalization, peaked at over 90 cents per XRP crypto token at the end of January. But now as of April 25, it is trading for 66.65 cents, down over 20.8% from the peak. This is down from a recent trough of just over 71.25 cents on April 23.
Analysts hope to see the legislation come to some conclusion sooner than later. Now that there is a timetable for an end to the lawsuit, investors in XRP crypto can see some light at the end of the tunnel. At least they will know by this time next year a decision on how to treat XRP will likely have come to light. That could allow institutions to begin using XRP in transactions and payments on a big scale.
On the date of publication, Mark Hake did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post XRP Crypto Looks Stronger Now That Ripple Has Gained Ground Fighting the SEC appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.