The Future of XRP: Insights into the Ripple vs. SEC Case
Pro-XRP lawyer Fred Rispoli, founder of HODL Law, has shared a bold prediction about the Ripple vs. SEC case. Rispoli highlighted the recent Ripple filing that mentioned the Binance case decision in Washington D.C., shedding light on potential outcomes for Ripple in its legal battle against the SEC.
Key Court Decision Influencing Ripple’s Case
Rispoli pointed out the ruling in the Binance case on June 28, 2024, where the court determined that SEC failed to show that secondary market BNB token transactions were securities transactions. This ruling could have significant implications for Ripple’s legal defense.
Ripple’s Defense Strategy
- Ripple argues that similar to the Binance case, XRP transactions on secondary markets do not qualify as securities transactions under US law.
- This defense relies on the application of the “Howey Test,” a legal benchmark for identifying investment contracts.
Potential Resolution by End of July?
Rispoli hinted at a potential timeline for the court ruling, suggesting a decision by July 31 or even a symbolic date of July 13. This date holds significance as it coincides with a pivotal 2023 judgment that favored XRP as a non-security.
Shifting Focus: From XRP’s Security Status to Penalties
The discussion on XRP’s security designation has evolved to the financial penalties Ripple may incur. Initially facing a $2 billion penalty demand, Ripple is now contesting the SEC’s revised $102 million penalty proposal.
Speculations on Ripple’s Penalty
- Rispoli speculated on a penalty of less than $25 million with no disgorgement.
- He anticipates the judge ruling against sales deemed illegal and disregarding new contracts referenced by Ripple.
Market Reaction to Legal Developments
Despite the legal updates, the XRP price remained stable, reflecting broader market trends. The digital asset saw a modest decline of -2.6% in the last 24 hours, coupled with a 24% increase in trading volume.
As of the latest data, XRP is trading at $0.4764.
Hot Take: XRP’s Legal Fate Hangs in the Balance
As the Ripple vs. SEC case unfolds, XRP investors await a crucial court ruling that could shape the digital asset’s future trajectory. Rispoli’s insights provide a glimpse into the potential outcomes and implications of the ongoing legal battle.
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