Now the Ripple lawsuit is slowly but surely seems to be coming to an end, we need to prepare for a number of scenarios. That is why we present three possible outcomes of the lawsuit in this article. In addition, we look at what effect the three different outcomes can have on the XRP price!
Ripple wins XRP lawsuit
For those who are not familiar with the situation Ripple is in, here is a very brief summary. Ripple is the company behind the XRP cryptocurrency. The Securities and Exchange Commission (SEC), a US regulator, has sued the company and its founders because XRP was a security, not a security. commodity such as bitcoin (BTC) or gold. They would therefore not have had permission to sell these securities and thus sold more than a billion dollars in illegal securities, or so the SEC claims.
Due to the lawsuit, the value of XRP completely collapsed. But what if Ripple wins the lawsuit? In that case, Ripple could continue to operate in the United States and the rest of the world without any problems. The company could fully focus on developing its products again, giving customers, such as banks and major financial institutions, greater confidence in Ripple’s products.
This would of course cause a lot of euphoria in the markets with a likely pump of XRP and possibly the rest of the crypto market as a result. If Ripple wins the lawsuit, it would also provide more clarity to other crypto projects in the United States that are in the same boat, or this is hanging over their heads. In short, profit from the lawsuit would not only be good news for Ripple and XRP investors!
Ripple settles lawsuit
Another possibility is that Ripple will settle the lawsuit. This means that a mutual agreement is made between Ripple and the SEC before the judge makes its verdict. In that case, Ripple will probably pay a hefty fine to the SEC. The advantage is that Ripple can continue to operate. The disadvantage is that there is still a lack of clarity in the American crypto market. Nevertheless, a settlement would likely spark euphoria among XRP investors, resulting in a pump.
Ripple loses, XRP price dumps even harder
And then, of course, there’s the scenario where Ripple loses the lawsuit. This would mean that the company would have to pay more than a billion dollars in fines to the SEC and that XRP can no longer be used within the United States. That would obviously be disastrous for the company and the XRP price. In that case, the price would dump even deeper than it already did.
It remains unclear which way things will go, although there are positive developments every now and then. So keep it ripple news keep an eye out!
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