XRP Lawsuit: Can the Gamble Really Work in Ripple’s Favor if It Loses
XRP lawsuit update
Ripple CEO Brad Garlinghouse recently disclosed that if they lose the SEC lawsuit, his company is willing to explore a different path. Indeed, he particularly claimed that if Ripple loses the XRP lawsuit, the company is willing to explore moving to a different jurisdiction.
It would not be surprising that Ripple would be willing to end its U.S. operations. There seems to be no end to the litigation, and the SEC has renewed its resolve against Ripple’s legal team.
A new report, in fact, shows that the SEC has adopted a new, more aggressive strategy against blockchain companies through the Wahi complaint.
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XRP lawsuit news: clouded by uncertainty
The Wahi complaint, filed in July, added insider trading allegations against 2 Coinbase staff. It also argues that nine other cryptocurrencies are securities. The SEC’s aggressive push could create more problems for the crypto market if the SEC wins the lawsuit.
An outcome like this would also push Ripple into an area of uncertainty, as its services may not be available in the U.S. if it moves to another country.
An unfavorable outcome for Ripple could affect its ODL business, especially since the U.S. is one of the largest financial markets in the world.
If U.S. banks do not participate in the ODL plan, then this could diminish the potential for adoption of the CBDC infrastructure of Ripple.
Assessment of the potential impact on XRP
An unfavorable outcome of the SEC lawsuit may further dampen investor sentiment. However, it is worth noting that Ripple has already launched a number of channels for ODL services. This represents an existing demand driver for XRP and may cushion XRP’s decline to some extent.
Since last week, XRP has been trading near its short-term price support level. The small decline below that support level suggests that it is weakening. Not surprising, as the SEC continues to ramp up its efforts in the fight against the crypto market.
XRP’s posting time outlook highlights the uncertainty that prevails in the market. Indeed, despite support for retesting, participation has been very low over the past 7 days.
The lack of a significant increase in daily active addresses highlights this result. XRP’s 7-day MVRV ratio has also been trending lower since August 25, confirming the bearish sentiment surrounding the altcoin.
Nonetheless, XRP price movement shows no signs of a potential turnaround and could face more selling pressure this week.
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