Ripple won the lawsuit with the SEC, there’s also talk about an $XRP ETF and even an $XRP strategic reserve. Where can its price go?
So, what else is cooking for Ripple, $XRP and the XRP army?
This lawsuit of the SEC vs Ripple dates to 2020. The SEC alleged that $XRP was an unregistered security. Ripple raised $1.3 billion during their ICO in 2013.
However, a court ruling on July 13, 2023, thought different. It found that $XRP, and consequently, other cryptocurrencies, are not securities. That is, as long as the sale is on a public exchange. It would become a security when it’s sold to institutional investors. This was the U.S. District Court, Southern District of New York.
As a result, the SEC dropped their charges against Garlinghouse and Larsen. They’re the founders of Ripple. This was in October 2023. However, the SEC continued to look for large fines from Ripple. As a result, the SEC appealed various rulings. Come 15th January, there’s a deadline for their appeal.
As I mentioned earlier, the current SEC chair, Gary Gensler, is about to step down. This will be on the 20th of January. So, for many reasons, it’s unlikely that the SEC will continue with their appeal. Unless Gensler is spiteful and wants this to be his farewell to the crypto sector. However, as I already mentioned, that is an unlikely scenario, although it remains a possibility.
The lawsuit makes this case a precedent on how crypto projects can legally raise funds. As it seems, Ripple walks away from this as the winner. The new SEC chair will most likely rule in favor of Ripple in the future. Or at least let the case die.
There’s also talk about $XRP ETFs. Four firms have already filed for such an ETF. These are,
There are currently two candidates who have their ETF application approved. These are $XRP and Solana ($SOL). They are in the driving seat for approvals this year. According to Polymarket, a US based prediction marker, $XRP is 71% likely to get approved this year. That number went up by 20% only a few days ago.
An ETF approval for $XRP should lead to a price increase. So, these are all indications of what a difference a new crypto-friendly US government can make. And for good measure, you can add a new and more crypto-friendly SEC chair. Market sentiment has seriously changed. For example, a Solana ETF approval gets a 73% likelihood on Polymarket.
Keep in mind that the approval timeline for an ETF is 240 days. Plus, don’t expect Atkins to approve ETFs on his first day in office. He will have to settle down in his new position and take stock.
From that point onwards, he will be able to clarify clear regulations. Accordingly, it’s likely that there will be ETF approvals later during the year. Including an $XRP ETF.
Now here is something new. This only popped up a few days ago. I’m talking about a strategic $XRP reserve. This all started with an interview of Devi Ryan with Brad Garlinghouse, who is Ripple’s CEO.
In this interview, Carlinghouse mentions the following.
“There’s some talk about a crypto reserve. I think that would end up including Bitcoin. AND OTHER TECHNOLOGIES. WHICH YOU KNOW, FRANKLY JUST MAKES SENSE FROM A DIVERSIFICATION POINT OF VIEW.”
This interview went live on LinkedIn on the 1st of January. Now it starts to make small waves for a potential $XRP strategic reserve. Once or when this gets picked up, we may see another price increment for $XRP.
However, it still seems to be hush, hush and on the qt for the time being. It’s also unknown if there’s any credibility to this. Since, in all fairness, Garlinghouse doesn’t straight out say that this is a reality. So far, mostly members of the XRP army have picked up on this.
Are they trying to turn a mouse into an elephant? What is your take on this strategic reserve news? Nonetheless, the wind is clearly blowing favorably in the $XRP sails. $XRP is getting ready to do a lot better than I ever expected.
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