Ripple SEC Settlement Hopes Drive XRP Up 8%
The cryptocurrency community is on high alert as the ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC) nears possible pivotal developments. The case holds significant weight, potentially shaping the future regulatory landscape for cryptocurrencies in the United States.
On Wednesday, XRP experienced a notable surge, climbing 8% to reach a price of $0.6586. This jump resulted in the liquidation of over $1.3 million in total positions while trading volume saw a dramatic increase of 112%. Open interest is also on the rise, nearing the $1 billion mark. Open interest reflects the total number of outstanding derivative contracts, such as futures or options, that have not been settled.
July has emerged as a crucial month for the XRP community, buoyed by Ripple’s significant win against the SEC in a ruling by Judge Analisa Torres on July 13, 2023. As the end of the month approaches, speculation about a potential settlement is gaining momentum. Influential voices within the XRP community, including attorney Fred Rispoli, have highlighted key dates, suggesting that a decisive ruling could be imminent, possibly by the end of July or early August.
Attention is now focused on the SEC’s upcoming closed-door meeting as per their Sunshine Act Notices calendar. The agenda covers a range of topics, including the initiation and settlement of injunctive actions, administrative proceedings, and litigation claims. This meeting follows a previous cancellation that had negatively impacted XRP’s price, placing even greater anticipation on the forthcoming discussions.
Ryan Lee, Chief Analyst at Bitget Research, has pointed out the significance of the SEC meeting for Ripple and XRP’s future. “This meeting will tackle potential settlement options for the Ripple lawsuit. With Ripple Labs’ founder hinting at an imminent legal settlement, an official announcement could lead to a favorable shift in XRP’s price dynamics, potentially enabling it to outperform Bitcoin in the near term,” Lee explained.
Furthermore, Lee highlighted the potential impact of US election campaigns on the XRP price, citing connections between Ripple and figures in the Democratic Party. “US Democratic candidate Harris’s relationships with key industry players like Coinbase, Circle, and Ripple might bring forth favorable regulatory news, driving positive sentiment within the crypto sector,” he added.
The SEC’s recent actions, including an amendment to its complaint against Binance and a partial withdrawal from the case, have stirred heightened interest in the market. Such moves suggest a possible shift in regulatory approaches, underscoring the dynamic and influential nature of regulatory interventions on cryptocurrency valuations and investor sentiment.
As developments unfold, the cryptocurrency sector remains closely attuned to any signals of regulatory shifts or legal resolutions, understanding that these outcomes hold the power to significantly influence the market landscape.
