The crypto Ripple (XRP) has just suffered a most notable legal shock. While navigating calmer waters since mid-July, the recent verdict of New York federal judge Jed Rakoff sent XRP into a whirlwind of uncertainty. Indeed, at the heart of the Terraform Labs-SEC lawsuit, it ruled that crypto Ripple (XRP) was a security. This decision has disrupted and confused the bearings of many players in the crypto market.
Clash of the Titans: Crypto Ripple (XRP) Security or Not?
The legal saga surrounding Ripple and the SEC has gone through many twists and turns. In July, a wave of relief swept through the crypto community when Judge Analisa Torres declared that the crypto Ripple (XRP) was not a security in the secondary market. This victory, however, appears to have been short-lived.
Indeed, according to Bloomberg, a new twist occurred on July 31. On that date, Judge Jed Rakoff entered the scene. The latter, contradicting the position of his colleague, asserts firmly that XRP is indeed a security, regardless of the market in which it is traded. A shock statement that undermines the line of defense previously established by Ripple.
The Terraform Labs-SEC lawsuit is therefore a significant turning point in the Ripple epic. In this battle, Terraform Labs saw the SEC take it to task “a multi-billion dollar crypto-asset securities fraud”. Any resemblance to the Ripple dossier is of course far from coincidental.
The market resists: Consequences on the price of XRP
The unexpected verdict did not cause the crypto Ripple (XRP) to drop dramatically. Indeed, it recorded a moderate drop of 26% in volume over 24 hours. However, this decrease must be put into perspective with the current context: a general downward trend in the crypto market. Even more, it shows an increase of more than 100% since the beginning of the year 2023.
XRP thus seems to have found a solid anchor around the $0.69 threshold. A support that could serve as a launching pad for future ascents, when the market winds turn to the upside again.
Ripple’s future therefore remains uncertain, as does the status of XRP. The judges follow one another and with them, the verdicts contradict each other. Yet Ripple continues to weave its web, as evidenced by its recent partnership with the Republic of Palau to test a stablecoin. Ripple is indeed determined to take off, despite the legal storms. So, on the horizon, will we see XRP cross the $1 mark? Only time will tell. For now, it looks like Ripple and XRP are navigating rough waters in search of stability and recognition.
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