Ripple continues to face significant challenges as it navigates a prolonged legal battle with the U.S. Securities and Exchange Commission (SEC). Notably, XRP, its native cryptocurrency, has been the hardest hit, with investors enduring a four-year consolidation phase.
While various analysts have suggested that the cryptocurrency could recover based on technical factors, others believe it might take longer until all the legal issues are resolved.
On Tuesday, Sean McBride, a former Ripple director, shared his views on the situation in a tweet, emphasizing the importance of a forthcoming judicial decision for any potential rally in XRP’s value.
Responding to a query from the XRP community about the recent dip in XRP’s value despite positive news, McBride said, “Nothing significant is going to happen with the price of XRP until Judge Torres makes her decision. So, anyone expecting anything different is delusional.”
The SEC’s lawsuit, initiated in December 2020, accused Ripple of selling unregistered securities in the form of XRP, amounting to approximately $1.3 billion. While a favorable ruling by Judge Analisa Torres in July 2023 determined that programmatic sales of XRP did not constitute securities offerings, it found that institutional sales did violate securities laws.
In an unexpected twist, the SEC recently announced its intent to seek a $2 billion fine against Ripple Labs, further complicating the situation. Ripple’s chief lawyer, Stuart Alderothy, criticized the SEC’s actions, stating, “Our response will be filed next month, but as we have seen time and time again, the regulator is promoting false, misinterpreted, and misleading claims.”
McBride also highlighted the necessity of clear legislative frameworks in the U.S. to support the broader adoption and integration of cryptocurrencies. “The next big piece of this is clear legislation in the US,” he stated, hoping that recent developments in Congress and former President Trump’s support for crypto could pave the way for favorable regulations.
A member of the XRP community also raised concerns about the potential impact of an SEC appeal if Judge Torres rules in Ripple’s favor. McBride responded optimistically, suggesting that an appeal would not necessarily impede Ripple’s operations. “Shouldn’t stop what’s happening in the US from happening, IMO, unless of course the ruling is not in Ripple’s favor,” he remarked.
That said, despite the ongoing legal battle and market uncertainties, McBride affirmed that he remains a staunch supporter of Ripple and XRP, advocating for a realistic view of the company’s challenges and potential. “I’m a big fan of Ripple and XRP. That doesn’t mean I’m a sheep, blinded by the reality of what’s happening behind the curtains,” he stated, encouraging the community to maintain a balanced perspective.
At press time, XRP was trading at $0.48, reflecting a 1.89% surge over the past 24 hours.
