Judge Analisa Torres’ final verdict will determine XRP’s next line of action.
The final decision and potential settlement present a few scenarios.
Ripple faces between $10 million and $2 billion penalty.
There is ongoing speculation about a potential settlement and the timing of the final decision on the case between Ripple and the U.S. Securities and Exchange Commission (SEC). Many analysts believe Judge Analisa Torres’ final verdict will go a long way in determining XRP’s line of action. However, the long wait appears to affect how the once-vibrant altcoin’s price is developing.
Judge Torres’ July 2023 judgment set the tone for what could be the outcome of the final decision on the protracted Ripple vs SEC case. The two-way judgment confirmed that XRP is not a security. However, the Judge faulted Ripple for violating the U.S. securities laws by selling unregistered XRP to institutional investors.
Notably, last year’s judgment saw XRP respond with significant volatility, with the altcoin surging over 100% in one day before shedding off the gains over one month. XRP’s decline followed fears that the SEC may appeal the initial judgment and attract severe penalties for Ripple.
It is crucial to note that the awaited final decision and potential settlement present a few scenarios. Ripple faces a penalty between $10 million and $2 billion if the Judge chooses the FinTech firm’s proposal or the SEC’s opening brief. It is worth noting that the SEC’s brief also requests Judge Torres to impose an injunction on Ripple, prohibiting the firm from further XRP sales to institutional investors.
Analysts believe the SEC’s request, if granted, would adversely affect Ripple’s U.S. expansion plans, with severe implications for XRP’s price development. However, a lesser penalty would represent a positive outcome for Ripple and a bullish signal for the embattled altcoin.
Most XRP users are watching the litigation process and expecting the final judgment between August and September. The altcoin traded for $0.5490 at the time of writing after dropping over 16% in the past five days, according to data from TradingView.
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