The future of cryptocurrency and blockchain technology could well be decided by a lawsuit filed at the end of 2020.
On December 22, 2020, the SEC filed a lawsuit against Ripple Labs and two of its executives. The claim is that they traded $1.3 billion in their cryptocurrency XRP as a security without registering it with the SEC. Ripple and other parties have since countered with claims that the SEC is biased in its assessment.
As of right now, here is the current status of this lawsuit as well as a breakdown of each side of the argument.
The SEC’s Claims
In their legal action made at the end of December, the SEC claimed that XRP is classifiable as a security because it was used to finance Ripple’s platform, which facilitates money transfers for retailers. In the process, the platform’s executives were also enriched with the sales of XRP.
Under SEC regulations, securities must be registered with the commission and certain financial information must be publicly disclosed. The goal is to counteract fraud and safeguard the interests of investors.
When determining whether a virtual currency counts as a security, the commission applies the “Howey test,” based on the Supreme Court ruling on SEC v. W.J. Howey Co in 1946. The test is that if an asset is sold with the expectation of profits derived from other parties’ efforts, then it counts as a security. As the SEC currently defines XRP in their lawsuit, it would pass the Howey test.
Ripple’s Response
Most companies targeted by the SEC in this manner settle. That’s not the case with Ripple, however. Rather than comply with the SEC’s demands, they have decided to fight it.
Why? They claim the SEC has been biased in how it applies the definition of “security” to virtual currencies. If this is proven to be true, it would undermine the commission’s authority, not to mention tarnish the credibility of their case.
In particular, Ripple has pointed to some of the associations that members of the SEC have had with other crypto platforms, especially Ethereum. While there is still little evidence of these ties, the fact that the commission gave Ethereum a pass on securities regulation while attacking XRP does appear suspect.
This is especially so since Ethereum initially funded its operations with an ICO, which would absolutely be considered a security. The SEC has claimed that Ethereum currently operates in a decentralized manner, which disqualifies it from securities regulation, but if that’s the case, Ripple questions why XRP is being attacked.
Worth noting is that Ripple was initially financed by venture capital, not an ICO, and that it now claims its operations are not materially different from those of Ethereum.
In addition to all this, Ripple is claiming they had no fair notice that what they were doing was in violation of securities law. The SEC itself has admitted recently that no statement was made on whether XRP could be classified as a security before filing its case.
To Sum Up…
To sum up the positions:
- The SEC claims Ripple was selling XRP as an unregistered security. They point to its role in funding Ripple and claim Ripple’s platform is not decentralized.
- Ripple claims the SEC is making classifications based on bias rather than actual merit (or even well-defined rules). They claim their operations are not materially distinct from those of other platforms that have been given a pass.
The lawsuit is still in its discovery phase, meaning each side is gathering evidence to strengthen their individual claims. Odds are, it will be years before we see a definitive result.
Why Is This Important?
Why is all this so important to the future of crypto? Currently, many virtual currencies are regulated through CFTC regulations, which are far less heavy-handed than the rules applied by the SEC. If the SEC wins, then they’d have regulatory oversight over many of the virtual currencies being traded today.
There’s a good chance that this extra oversight could stifle the technology’s development in the U.S. since it was built with the design of being independent of heavy government regulations. Other countries would likely lead out on its development.
On the other hand, if Ripple wins, then the CFTC’s lighter regulations would likely apply, and blockchain technology would be freer to develop further. A potential downside would be the lack of legal safeguards against criminal activity, though many states that the potential for something to be used in a crime doesn’t justify regulating honest use.
What does the future hold? It remains to be seen. The SEC v. Ripple case has a long—and likely messy—process of courtroom litigation ahead of it, and we’re all watching to see what will result.
FAQs
If you belong to the group of crypto users who were hoping that the lawsuit outcome could bring XRP some more significant value growth, you are probably disappointed after all this. As you can see, the chances of that happening are very small.
What will happen to XRP if they lose the lawsuit? ›
The XRP Ledger is decentralized, and its operations would not be affected even if Ripple lost the ongoing legal case against the SEC.
What price will XRP reach after lawsuit? ›
However, as the markets recover, XRP tokens are on the rise once again. The coin experienced a massive price surge in April 2023, reaching around $0.50. The SEC charged the platform in 2020, and if the court rules in XRP's favor, the crypto will likely reach $1 once again.
When should Ripple lawsuit end? ›
How long will the Ripple lawsuit last? We don't know for sure, although a ruling is expected to be made at some point in 2023. That will, ultimately, be the biggest bit of Ripple court case news to come.
Can XRP reach $1000? ›
XRP might reach $1000 if it becomes the chosen currency of all the major banks on earth and the circulating supply becomes deflationary, but it is highly unlikely. Elrond Price Prediction 2023 up to $81.57. If this happens, then the investments could move up from other cryptocurrencies.
Can XRP really hit $100? ›
To reach $100, XRP will have to rise 199x. That translates to a market cap of $5.2 trillion (equal to 12x the current market cap of Tesla). This looks incredibly unrealistic.
Do I lose my money if XRP is delisted? ›
You're still able to send or receive XRP. While XRP funds will remain safely stored in your account after the trading suspension, you will not be able to buy, sell, or convert.
What happens to XRP if SEC wins? ›
Notably, if the regulator is successful in this case, it might have very negative repercussions for XRP, its investors, and the cryptocurrency sector as a whole. In particular, the regulatory body has the authority to levy a fine on Ripple Labs and demand that the business register XRP as a security.
Can the government take your XRP? ›
First, the developer notes, XRP is a decentralized cryptocurrency and cannot be seized without forcing key holders. Second, it is easier for the government to create its own digital token if it need it for its own use.
What is the highest prediction for XRP? ›
XRP Prediction Table
| Year | Minimum Price | Maximum Price |
|---|
| 2024 | $0.869913 | $1.04 |
| 2025 | $1.26 | $1.52 |
| 2026 | $1.83 | $2.20 |
| 2027 | $2.53 | $3.17 |
6 more rows1 day ago
The current price is $0.52 per XRP. XRP is 86.47% below the all time high of $3.84. The current circulating supply is 51,987,017,573 XRP.
Could XRP reach $300? ›
Ripple Coin News predicts that Ripple could hit $30 in the next 10 years. Andreas Kaplan, in his article written for Smarterem, says that “most people within the business agree that Ripple's value can go up to the $200-$300 range in ten years.”.
Will banks use XRP? ›
Yes, XRP is used by banks. XRP is the native digital asset of the Ripple payment protocol, an open source payment system used by many financial institutions. RippleNet, a financial payment network that banks and payment providers use to make payments and settlements, offers on-demand liquidity via XRP.
What is XRP price prediction? ›
Ripple's token price is climbing above the $0.50 resistance against the US Dollar. XRP price is signaling more upsides toward $0.55 or $0.565.
Will Ripple keep rising? ›
XRP Price Prediction 2028
In 2028, Bitcoin halving will occur. Hence, the consolidating market in 2027 could be followed by a bullish run. Notably, the market could attain higher values. In the next five years, XRP prices could rise to $2.545.
Could XRP hit $50? ›
Will XRP reach $50? Possibly, at some future time. However, most analysts expect XRP to remain under $10 at least through 2030.
Could XRP ever reach $10,000? ›
Can XRP Reach $10,000? XRP needs to increase at a rate of 26,315x, taking into account its present price of $0.38, to reach a level of $10,000. It could theoretically increase to $10,000 in 216 years (keeping in mind the past track record of 10.13x growth in one month).
How much will $100 XRP be worth in 2025? ›
XRP (XRP) Price Predictions 2023 - 2031
| Year | Minimum Price | Average Price |
|---|
| 2023 | $0.641197 | $0.801496 |
| 2024 | $1.18 | $1.34 |
| 2025 | $1.71 | $1.87 |
| 2026 | $2.24 | $2.40 |
5 more rowsWhen an asset gets delisted from an exchange, all of its trading pairs are removed. The asset can still potentially be traded on other exchanges (such as decentralized exchanges), or through over the counter trading (OTC), but trading activity on the exchange that delisted that asset will cease.
What happens to my money if a share is delisted? ›
When a company delists voluntarily, shareholders will usually receive cash to buy them out or shares in the new, acquiring company. 7 When it is forced to go, the outcome is usually different.
Though delisting does not affect your ownership, shares may not hold any value post-delisting. Thus, if any of the stocks that you own get delisted, it is better to sell your shares. You can either exit the market or sell it to the company when it announces buyback.
How do I get rid of XRP? ›
If you own XRP, you can deposit it today and sell your crypto. If you want to sell XRP for another cryptocurrency (like BTC or ETH), generate a deposit address in your Kraken account and send your XRP to that address. Depositing crypto to Kraken is as easy as transferring it to any crypto address.
Where to buy XRP in usa? ›
Where to Buy XRP: Top 9 Platforms to Buy Ripple XRP [2023 UPDATED...
- Where to Buy XRP.
- FAQs About Where to Buy Ripple.
- List of the Top Platforms Where to Buy XRP. Comparison Table of Best Ripple XRP Buying Apps. #1) Uphold. #2) Binance. #3) Kraken. #4) Huobi. #5) Atomic Wallet. #6) Freewallet. #7) Bitfinex. #8) eToro. #9) Pancakeswap.
Ripple was sued by the Securities and Exchange Commission in 2020 over cryptocurrency XRP.
Is it illegal to hold XRP in the US? ›
Most exchanges that list XRP are not allowed to operate in the United States. In addition, the cryptocurrency exchanges permitted in the U.S. do not list XRP in response to an investigation by the Securities and Exchange Commission (SEC).
Do you have to pay taxes on XRP? ›
Just like these other forms of property, cryptocurrencies are subject to capital gains and losses rules, and you need to report your gains, losses, and income generated from your crypto investments on your taxes.
Can the government seize your crypto? ›
Federal law allows the Government to seize and retain – and then, ultimately, to sell with the proceeds going to Government coffers – “any property, real or personal, involved in a transaction or attempted transaction” that violates certain specified federal statutes.
How much will XRP be worth in 2023? ›
XRP's Long Term Price Prediction
| Years | Avg Price | Lowest Price |
|---|
| 2023 | $0.54 | $0.43 |
| 2024 | $0.5 | $0.4 |
| 2025 | $0.61 | $0.49 |
| 2026 | $0.75 | $0.6 |
8 more rowsWill XRP Reach $1,000? No, it is extremely unlikely Ripple XRP will reach $1,000. This is because its total circulation is less than 100 billion, which means it would need to have a market cap of $100 trillion for XRP to hit a price of $1,000.
What will $100 of Bitcoin be worth in 2030? ›
The research report put together by Ark Invest sees Bitcoin hitting price targets in 2030 of $258,500 in the bearish forecast, $682,000 in the average market and $1.48 million in a bullish market.
XRP is a good investment for long term. The current price of XRP is $1.17. No, it is extremely unlikely Ripple XRP will reach $1,000. This is because its total circulation is less than 100 billion, which means it would need to have a market cap of $100 trillion for XRP to hit a price of $1,000.
What will XRP be worth in 2040? ›
XRP Coin Price Prediction
| Year | Minimum Price | Maximum Price |
|---|
| 2029 | $7.96 | $8.79 |
| 2030 | $8.86 | $10.13 |
| 2040 | $21.08 | $24.11 |
| 2050 | $38.45 | $45.27 |
6 more rowsMay 16, 2023
With the current circulating supply, Shiba Inu is unlikely to reach 1 cent any time soon. The overall market cap of Shiba Inu has been fluctuating around $5 billion for the last couple of weeks.
Does Bank of America use Ripple? ›
Bank of America is a huge partner of Ripple.
Why aren t banks buying XRP? ›
XRP Is Too Volatile; Banks Won't Hold It
XRP is volatile, as are all other cryptocurrencies. FIAT is volatile too, over longer time periods. In nostro/vostro relationships, banks are exposed to exchange rate fluctuations over a long period, and in some currencies, the risk is too high for banks even to enter.
How many banks actually use Ripple? ›
Currently, there are over 200 banks, financial institutions, and payment platforms around the world that are backing XRP, including some of the largest banks in the world. These include Santander, American Express, SBI Holdings, UBS, MoneyGram, and more.
How many people hold XRP? ›
Anyway, data supplied by the CoinCarp website said that, as of 12 April 2023, there were 4,559,305 wallets which held XRP. The site suggested that the two top holders of ripple were wallets controlled by Ripple Labs itself.
Should I still invest in Ripple? ›
A ruling in the SEC's lawsuit against Ripple Labs, the company behind the XRP cryptocurrency, could come in mid-2023. If the court rules in Ripple's favor, XRP's value could skyrocket. However, a ruling against it could send XRP to zero. Given the nature of the risk involved, long-term investors should avoid XRP.
Will Ripple ever reach $5? ›
XRP could reach a $5 price in the foreseeable future, according to Versluis who highlighted that it is the only asset to have surpassed ETH in market cap. Mason Versluis, notable crypto podcaster and the founder of Gold Squad, remains bullish on XRP.
Is XRP going to be bigger than Bitcoin? ›
It is impossible for XRP to ever overtake Bitcoin's rate. XRP would then have to increase 50,000 times while Bitcoin would stand still. The more coins available, the lower the value of one coin will be.
In particular, the regulatory body has the authority to levy a fine on Ripple Labs and demand that the business register XRP as a security. As a consequence, a judgment of this kind would certainly result in XRP being treated in the same manner as conventional securities, which may restrict both its adoption and usage.
What is XRP projected to hit? ›
BTC Overview
According to the latest long-term Ripple price forecast, XRP will reach $0.75 by the end of 2023 and $1.2 by the end of 2025. Ripple will then rise in value to $2.45 in 2028, and $3.81 in 2030.
Can Ripple survive without XRP? ›
XRP vs.
RippleNet is Ripple's cross-border payment network. It does not need XRP to function.
Can XRP reach $10,000? ›
Overall, this is unlikely in the coming years. In order for Ripple to reach $10,000, it needs to have a much larger market capitalization. Start investing in XRP right now with ByBit! Your capital is at risk.
Is it wise to hold XRP? ›
Is XRP safe to invest in? Financial regulator, the Financial Conduct Authority (FCA) warns anyone thinking about investing in cryptocurrency they should be prepared to lose all of their money. XRP is as volatile as any other cryptocurrency.
Can XRP hit $50? ›
According to Ripple's CEO Brad Garlinghouse, the verdict in the company's lawsuit against the SEC could be delayed until the end of the first quarter of 2023. In the event of a good outcome, the price of XRP might rise to as high as $50.
How much is 1 XRP worth right now? ›
Price Summaries
's price today is US$0.5255, with a 24-hour trading volume of $897.27 M. is +0.00% in the last 24 hours. has a circulating supply of 51.99 B and a max supply of 100 B .
What price will XRP reach 2023? ›
XRP price could reach a maximum of $1.104 by the end of 2023. The lengthy Ripple vs SEC battle is about to come to an end, as a decision is to be expected soon. Ripple price with a potential surge may cross the $5 mark by the year 2030. Ripple XRP price today is $ 0.5361.
How high can XRP go in 2023? ›
XRP has gone up by 11.31% in the past 30 days. According to our analysis in the short term, XRP price prediction for August 2023 shows the average price of XRP at $0.56 and the highest possible price for August 2023 would be $0.6.
Could XRP be the next Bitcoin? ›
Is XRP the Next Bitcoin or Ethereum? Some experts believe XRP's capabilities could put it at the same level of adoption and industry respect as the gold standard of crypto, bitcoin, and the number one alt-coin, ethereum.
Top 2 Reasons Not to Buy Ripple (XRP)
There are many reasons why you may choose not to buy Ripple in 2023. It could be the tight monetary policy of the Fed, negative crypto market conditions, or that the price may still fall, according to some forecasts.
