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 pilot phase. The outcome of the case, which aims to determine whether XRP should be classified as a security, remains uncertain. This decision could significantly impact the legal status of XRP and investor sentiment.
The lawsuit reportedly created a sense of uncertainty and negatively affected investor confidence. If the lawsuit had not occurred, market sentiment likely would have been more positive. Furthermore, in the absence of legal issues, Ripple may be able to establish more partnerships with companies and financial institutions, leading to increased adoption.
The lawsuit also led to several exchanges delisting XRP or restricting its trading. Although many have since brought it back, the move likely affected XRP 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.
Although this is speculative, experts generally believe that without the lawsuit, the price of XRP would likely be much higher, reflecting its potential and market adoption without the legal consequences. However, any estimate remains speculative and would require comparing historical data from pre-lawsuit periods with the performance of other major cryptocurrencies.
