Ripple’s XRP continues to rise despite a broader crypto downturn, defying the bearish trend. This boost has primarily been attributed to the outcome of Ripple vs SEC lawsuit as anticipation for a possible settlement conference grows.
Following the partial ruling in Ripple’s favour that its XRPs are not securities on cryptocurrency exchanges, the virtual currency has witnessed an almost 65% surge over the week and 8% in the last 24 hours, as of writing. The beginning of the week saw a significant drop in the prices of major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). However, XRP, the native asset behind Ripple demonstrated resilience, and changed course for an impressive upturn.
This surge came on the heels of Judge Analisa Torres’ summary judgment in the US Securities and Exchange Commission (SEC) v. Ripple Labs case, which subsequently led to the referral of the case to Magistrate Judge Sarah Netburn for a general pretrial on Monday.
Despite the SEC’s insistence that XRP was a security, Ripple scored a significant victory on July 13 when the court partially ruled against the SEC’s claims. As a result, Ripple’s token is currently not considered a security when sold on crypto exchanges, albeit it retains its security status when sold to institutional investors.
Optimism for a Ripple-SEC settlement in the offing
According to the latest court filings, the lawsuit between the SEC and Ripple is now under the purview of Magistrate Judge Sarah Netburn. The judge is set to preside over the general pretrial and potential settlement conference, resulting in heightened optimism about the upcoming case developments.
Also recommends scheduling 6-8 weeks beforehand due to the court’s busy schedule. pic.twitter.com/zyU4Ku2OOu
— Eleanor Terrett (@EleanorTerrett) July 17, 2023
Judge Netburn’s suggestion that both parties should engage in a settlement conference if deemed productive has added to this optimism. This move could reduce the likelihood of an appeal by the SEC against the court’s decision. Consequently, XRP’s price has further solidified in the market, showing no signs of wavering despite the broader crypto market slump.
Ripple’s strategic moves in the tech sphere
In addition to the positive legal developments, Ripple has recently made strategic investments in the artificial intelligence (AI) and metaverse sectors. Such moves are invaluable to the fortunes of the company and its flagship cryptocurrency.
Ripple Labs has notably participated in a $54 million Series A funding round for Futureverse, a metaverse project. The project plans to integrate the XRP Ledger into its gaming-focused blockchain, The Root Network, which will also support XRP.
In a recent CNBC interview, Ripple’s general counsel Stu Alderoty expressed optimism that U.S. banks would resume using Ripple’s On-Demand Liquidity (ODL) product, further underscoring the positive outlook for Ripple and XRP in the aftermath of the landmark court ruling.
XRP market performance
Ripples native asset, XRP, has been changing hands at $0.819842, boasting an 8.67% increase in the last 24 hours, as of writing. The digital asset has a market cap of $43 billion, earning a spot in the top 10 digital assets by market capitalization, data from crypto asset tracker CoinMarketCap showed. With a 24-hour trading volume of $3.5 billion, it’s clear that investors continue to pour more liquidity into the tradable asset.
XRP/USD price chart, Source: Coinmarketcap
As Ripple prepares for the general pretrial and potential settlement with the SEC, the company’s investments and market performance stimulate investor confidence. The developments in the legal case, coupled with Ripple’s strategic business moves, position XRP as a resilient digital asset many traders will like to add to their investment portfolios. The weeks ahead will be crucial for Ripple, the SEC, and the crypto community.