XRP Dips Amid US Seizure Speculation and Court Silence: What’s Next?
XRP Faces Uncertainty as Investors Await Key Ruling in SEC vs. Ripple Case
XRP continued to struggle on June 21, marking its third consecutive session of declines. This downturn comes as market participants anticipate a crucial decision from Judge Analisa Torres regarding the settlement parameters in the ongoing SEC vs. Ripple litigation. On June 12, both Ripple and the SEC submitted a joint motion seeking an indicative ruling aimed at lifting the existing injunction against XRP sales to institutional investors and seeking a reduction in the previously imposed $125 million fine.
Judge Torres had previously dismissed the initial motion, pointing out procedural missteps and a lack of compelling arguments regarding how a settlement would benefit the public as well as institutional stakeholders.
In the wake of her initial ruling, XRP saw a significant drop, plummeting from $2.5712 to a low of $1.9998 by Saturday. This decline highlights the growing market anxiety surrounding the impending legal decision. Following Judge Torres’s swift rejection of the first motion—within a mere week—investors have been left in a state of uncertainty due to the absence of further updates concerning the second filing.
Importance of the Settlement
Should Judge Torres issue a favorable indicative ruling, it would pave the way for Ripple to withdraw its cross-appeal, while the SEC would cease its appeal against the ruling on Programmatic Sales, where Judge Torres determined that such sales of XRP did not meet the third criterion of the Howey Test.
A resolution in favor of Ripple could potentially accelerate the approval process for several pending applications for XRP spot exchange-traded funds (ETFs). This could lead to a surge in inflows into the token, possibly driving its value to new record heights. Conversely, if the SEC continues with its appeal, XRP could experience significant selling pressure. In a worst-case scenario, a successful appeal by the SEC could result in severe consequences for XRP’s market standing.
