According to CryptoPotato, the ongoing lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC) began in 2020 and is currently in its trial phase. The outcome of the case, which aims to determine if XRP should be classified as a security, remains uncertain. This decision could significantly affect XRP's legal status and investor sentiment.
The lawsuit has reportedly created a sense of uncertainty and negatively impacted investor confidence. If the lawsuit had not occurred, it is suggested that the market sentiment might have been more positive. Furthermore, in the absence of legal issues, Ripple might have been able to establish more partnerships with enterprises and financial institutions, leading to increased adoption.
The lawsuit also led to many exchanges delisting XRP or restricting its trading. Although many have since reinstated it, this move likely affected XRP's accessibility and trading volumes. Without the lawsuit, XRP might have had more regulatory clarity, making it a more attractive investment for institutions wary of legal uncertainties.
While it is speculative, experts generally believe that without the lawsuit, XRP's price would likely be significantly higher, reflecting its potential and adoption in the market without the legal overhang. However, any estimation remains speculative and would require a comparison of historical data from periods before the lawsuit with other major cryptocurrencies' performance.
