A popular subject in the cryptocurrency community is the abiding lawful disagreement between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The SEC claims that Ripple offered its native cryptocurrency, XRP, as an unregistered securities and made over $1.3 billion in sales. This is the basis of the action, which started in December 2020.
May 13th: An Important Day
A new development on May 13, 2024, highlighted a significant turning point in the narrative. The SEC moved to compel Ripple to provide documentation about its legal opinion on whether or not XRP transactions breached securities laws, and the court heard arguments on this move. According to Ripple, these records are shielded by the attorney-client privilege and would be detrimental to their case if made public. The judge’s ruling will significantly impact the way the litigation develops in the future on this motion.
Impact on the Market
The legal uncertainty surrounding XRP has undoubtedly impacted its market performance. Despite maintaining a position among the top cryptos by market capitalization, XRP’s price has fluctuated significantly in response to developments in the case. The recent surge in whale activity, with large transfers of XRP to exchanges, has further fueled investor speculation.
Settlement Rumors and Predictions
With the trial phase beginning on April 23, 2024, some speculate that a settlement could be reached before a final verdict. A settlement of around $100 million has been floated as a possibility, but neither party has confirmed such discussions.
Ripple price history
The Ripple coin’s price history shows boom and bust cycles. Starting at a mere $0.005 in 2014, it soared to an all-time high of $3.84 in early 2018 during a significant cryptocurrency bubble. However, the bubble burst, and the price plunged below $1 by March of that same year. XRP partially recovered during the 2021 bull run, briefly surpassing $1 again. Yet, by early 2022, it fell below the dollar mark and remained low throughout the year, even dipping below $0.50 as the crypto market went through a series of crashes.
Ripple in 2023 and 2024
Despite some positive signs in 2023, XRP’s price remained volatile. It started at around $0.50 in early June but dipped to $0.45 within weeks after the news of the SEC suing significant exchanges. A court ruling in Ripple’s favor provided a temporary boost, driving the price up to $0.88 in July. However, it fell again throughout the summer, reaching $0.46 by September. XRP partially recovered later in the year, reaching $0.73 in November after the SEC’s appeal was rejected. The price then dipped slightly before closing the year at $0.61. The new year brought another decline, with XRP falling to $0.51 by January. Although the market picked up in March, the gains were modest, with XRP hovering around $0.52 by mid-March.
Conclusion
As the legal battle between Ripple and the SEC unfolds, the crypto community is closely watching for updates and developments. The hearing on 13th May regarding the SEC’s motion to compel Ripple to produce documents could provide crucial insights into the case’s progress. Meanwhile, Ripple’s motion to seal certain documents underscores the sensitivity of the information at stake.
Disclaimer: We are obsessed with cryptocurrency and love to write articles to express our thoughts. This article is for informational purposes and contains the writer’s personal opinion. Don’t consider it financial advice from the author or the CoinzBTC team. Do your research and think twice before making any investment decisions. CoinzBTC does not take responsibility for any financial losses.
