- XRP could surge 300% to $2.55 if the SEC settlement favors Ripple.
- Ripple seeks reduced penalties from the SEC, challenging the $125M fine.
- Franklin Templeton filed for an XRP ETF, with a 60% approval chance.
The XRP community is closely watching for a potential settlement in the ongoing lawsuit between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC). Recent reports indicate that the Ethereum Initial Coin Offering (ICO) might influence the terms of the agreement, raising questions about XRP’s future classification.
Fox Business Senior Correspondent Charles Gasparino disclosed that the addressing of a key question is whether Ripple will convert to a utility rather than a security. Gasparino, from a supposed interview, said that Ethereum’s initial ICO is in many ways similar to the XRP issuance, and it is that which is the most important factor that will decide the issue.
Ethereum’s ICO and XRP’s Legal Struggles
Ethereum initially conducted an ICO to fund its development, much like XRP. However, SEC has considered Ethereum a commodity, whereas, Ripple is in trouble for purportedly selling unregistered securities. Current debates indicate that Ripple might be considered a commodity, which poses formidable consequences on coming litigations regarding crypto assets.
Ripple’s CTO David Schwartz has been aggressively defending Ripple from the criticisms that are comparing XRP with Ethereum, as it was pre-mined and never distributed through an ICO. If Ripple is classified as a commodity, could set a precedent for other cryptocurrencies, which are in the same situation with regulatory authorities.
The court battle turned in July 2023, when US District Judge Analisa Torres held that Ripple is not security when it is sold on secondary markets. But simultaneously, she held that the direct sales by Ripple to institution buyers were violations of the security laws, the grounds for the imposition of the $125 million fine and the prohibition against the sale to institutions.
Ripple’s attorneys are reported to be negotiating to modify these penalties, especially against the background of new SEC policies. No final determination by the regulator has yet been made, and the SEC and Ripple have kept the settlement discussions under wraps. Conclusion to this case would establish the tone for the regulatory environment for digital currencies.
Ripple Price Target Set at $2.55
Market analysts believe that a favorable settlement could trigger a substantial XRP price rally. If legal clarity emerges, technical indicators suggest XRP could surge to $2.55, with further gains targeting the $3 resistance level. Investors are closely monitoring negotiations for any significant updates.
Fox Business reporter Eleanor Terrett noted that delays in the settlement stem from Ripple’s legal team seeking more favorable terms, particularly regarding the imposed $125 million fine. The argument suggests that if the SEC’s new leadership is reversing enforcement actions on past crypto cases, Ripple should not face penalties.
Meanwhile, asset managers are showing a growing interest in Ripple. This week, Franklin Templeton filed for a spot Ripple exchange-traded fund (ETF), making it the largest financial institution to do so. Bloomberg analysts estimate a 60% approval chance for an XRP ETF, citing the SEC’s evolving regulatory stance.
Read More: Ripple CTO: XRP-Only System Possible but Limits Growth