TL;DR
- XRP’s possible surge to $1 could be fueled by additional developments on the Ripple v. SEC front, such as the company paying the penalty.
- Other factors that may trigger a bull run include positive market sentiment and increased adoption.
Is There a Chance?
After a prolonged period of inactivity, the lawsuit between Ripple and the US SEC witnessed a massive development at the start of August. Back then, Judge Torres ordered the company to pay a $125 million penalty for violating certain securities laws.
The sum might sound substantial, but it actually represents a 94% deduction from what the regulator initially asked for. This caused numerous industry participants, including Ripple’s CEO Brad Garlinghouse, to describe the decision as a major win for the firm.
Lately, there have been increased rumors that Ripple might settle with the SEC as early as this week. We decided to ask ChatGPT whether such an action could fuel a price rally for XRP to as high as $1.
The AI-powered chatbot estimated that paying the penalty could be seen as a step toward reducing regulatory pressure around Ripple and its native cryptocurrency. As a result, the price might head north to the aforementioned target:
“A resolution with the SEC could alleviate concerns about potential legal setbacks for Ripple, leading to more positive market sentiment and possibly attracting new investors, which might drive the price higher.”
On the other hand, ChatGPT claimed there are other crucial factors that could play a role in such a rally. Some of the main ones include favorable market conditions, increased adoption, and additional support from exchanges.
The list of trading venues that introduced XRP services following Ripple’s first partial court win against the SEC last summer stretches far and wide. Some of those jumping on the bandwagon are Coinbase, Kraken, Gemini, Crypto.com, and more.
Ripple’s Latest Filing
While some of the company’s executives agreed to the court terms, the actual payment of the fine might be delayed. This was revealed in a recent motion filed by Ripple, in which its lawyers requested a stay on the monetary portion of the Court’s Judgment entered last month.
The attorneys proposed moving 111% of the amount (roughly $138 million) to the legal team’s bank account as collateral. These funds are expected to stay there until 30 days after the appeal period ends. Both parties have until early October to challenge the initial ruling.
“Should the court of appeals vacate or modify the Judgment, the parties will attempt in good faith to reach an agreement about the appropriate treatment of the Fund and will submit to the Court any disputes they cannot resolve,” the letter reads.
Some industry participants speculated that this action might be followed by a potential appeal by the SEC. For one, the American lawyer Fred Rispoli said:
“Going through all this effort with establishing a trust for the funds boosts chances of an appeal IMO. But ultimately, this is just the safest play for SEC to buy time until the Oct. 7 deadline to appeal.”
